HC Deb 13 December 1933 vol 284 cc366-7
65. Mr. PIKE

asked the Chancellor of the Exchequer if he is aware that cooperative societies throughout Great Britain are now supplying large quantities of milk to school children in sealed bottles for one penny; that the purchasers are not members of the society and that no dividend is payable by the society upon these purchases; if he will state by what method the receipts from such sales are separated from the general returns of the society; and if, in view of the increase of such sales, he will consider the application of a special revenue tax upon them?

The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)

I have no information in the matters to which my hon. Friend refers, but I would explain that any profits arising from such sales would, of course, be included in computing the society's liability to Income Tax in accordance with the provisions of Sections 31 and 32 of the Finance Act, 1933.

Mr. PIKE

In view of the fact that the local education authorities are responsible for the purchases of milk from the societies, are the local authorities entitled to use the money for any specific purpose they lay down, and, if not, will the Minister take into consideration a reduction of the amount equal to that received in dividend when the Education Vote is taken'?

Mr. HORE-BELISHA

I cannot follow what it is that my hon. Friend wants. The co-operative societies are assessable to Income Tax now on exactly the same basis as private concerns.

Mr. E. WILLIAMS

Does the hon. Gentleman know that thousands of mothers in this country are still supplying milk free of charge, and does he propose that they should be taxed for that reason?

Mr. HORE-BELISHA

No. Sir. Presumably, mothers have always supplied milk free of charge, and will continue to do so.

Mr. McGOVERN

Is the hon. Member aware that this milk is supplied to the children on a humane basis, without profit, and that the co-operative societies are rendering a great service?

Mr. HORE-BELISHA

They are performing the ordinary industrial service of selling.