§ Mr. HALESI beg to move, in page 8, to leave out lines 35 and 36, and to insert instead thereof the words:
In moving this Amendment it may appear at first sight that I am suggesting a loss of revenue to the Exchequer, but, in reality, this Amendment would have the opposite effect. I agree with the duty of 15s. on engines up to 150 centimetres and of £1 10s. on engines up to 250 cubic centimetres, but the trend of the trade at present is towards the 350 c.c. 3½ h.p. engine and towards the gradual abolition 265 of the 250 c.c. machine, That being the case, as time goes on the 2½ h.p. engine will be eliminated and the next grade, the 350 c.c. engine, brought into use. We then have the position that there will be a jump in the tax from 15s. to £3, which, I suggest, is far too high. By imposing a tax of £2 on 350 c.c. machines the purchaser would be induced to pay the 10s. extra per annum in order to get the higher-powered machine, whereas, if he had to pay a duty of £3 he would naturally be forced to buy a cheap lightweight machine, from which the Government would derive only a revenue of 15s. I speak from an experience of 35 years' close connection with this industry, and I am also informed as to what is happening in connection with the 1933 model. At a conservative estimate, if this Amendment were accepted, the Treasury would benefit by £5,000 or £6,000 a year, which is a sum worthy of consideration.
£ s. d. "(c) Exceeds 250 cubic centimetres but does not exceed 360 cubic centimetres 2 0 0 (d) Exceeds 350 cubic centimetres 3 0 0" Another point which I would emphasise is that the motor cycle industry is the one industry in England which has beaten the whole world. We have defeated America, Germany, France, Holland, and every country which makes motor cycles. It is to the interest of this country that we should keep that supremacy in the face of all comers, and that everything should be done by the Government to make it possible for this supremacy to be maintained, and so provide the Income Tax which is so necessary in these days of depression. The 3.50 machine is the model in almost universal use in India, Malaya and the Dutch East Indies and throughout the East, and by concentrating on this one model you have mass production, which has enabled the price to be reduced, which is another proof of the benefit of the McKenna Duties. I, therefore, suggest that this matter should receive careful consideration as it will certainly give a great fillip and enable us to maintain our supremacy in the motor cycle industry which is our proud position to-day.
§ The MINISTER of TRANSPORT (Mr. Pybus)The object of the Amendment is to increase the number of classes into which motor bicycles are divided for the purpose of taxation from three to four. The hon. Member suggested that this might increase the taxation returns by £6,000 a year. I am advised that it would cost the Treasury at least £100,000 a year 266 and, while we are quite ready at all times to consult with manufacturers of motor bicycles, and have continuously done so, and we are now proposing to change the method of assessing taxation from weight to engine cubic capacity. I am afraid, in view of the heavy loss involved, we cannot accept the Amendment.
§ Amendment negatived.
§
The following Amendments stood upon the Order Paper: In page 9, line 17, at the end, to add the words:
and by the substitution in paragraph 6 thereof of the words—
'in the case of any vehicle the engine of which was constructed not less than five years before the date of the issue of the licence duty shall be seventy-five per cent. of the duty otherwise chargeable under the paragraph.'
for the words—
'if any person proves to the satisfaction of the authority charged with levying the duty that he has paid in respect of any vehicle the duty chargeable under this paragraph, and that the engine of the vehicle was constructed before the first day of January, nineteen hundred and thirteen, he shall be entitled to repayment of twenty-five per cent. of the duty paid.'"—[Mr. Guy.]
§
In page 9, line 17, at the end to add the words:
and by the substitution in paragraph 6 of the said Second Schedule, of the words—
'Exceeding 6-horse-power and not ex-ceding 12-horse-power:
£1 for each unit or part of a unit of horse-power in excess of 6-horse-power.
Exceeding 12-horse-power and not exceeding 20-horse-power:
£12 and 10s. for each unit or part of a unit of horse-power in excess of 12-horse-power.
Exceeding 20-horse-power:
£16 and 5s. for each unit or part of a unit of horse-power in excess of 20-borse-power.'
for the words—
'Exceeding 6-horse-power:
£1 for each unit or part of a unit of horse-power.'"—[Major Thomas.]
§ The DEPUTY-CHAIRMANThe Amendments next upon the Order Paper standing in the names of the hon. Member for Edinburgh Central (Mr. Guy) and of the hon. and gallant Member for Kings Norton (Major Thomas) should be moved as new Clauses.