HC Deb 12 February 1934 vol 285 cc1589-90
51. Sir W. DAVISON

asked the Chancellor of the Exchequer whether he is aware of the large sums annually lost to the Exchequer by reason of the fact that the profits of co-operative societies are not taxed in the same way as the profits of a private trader; and, as this privilege was granted to co-operative societies in the past on the ground of mutuality, whereas co-operative societies now trade with members of the public irrespective of whether they are members of the co-operative society or not, whether, in these circumstances, he will take steps to terminate privileges which increase the burdens to be borne by the general taxpayer?

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

I would refer my hon. Friend to the answer given on the 1st February to a question by my hon. Friend the Member for Shore-ditch (Mr. Summersby).

Sir W. DAVISON

Is it not the case, as stated in my question, that these special privileges were granted because of alleged mutuality, and is my hon. Friend aware that the co-operative societies have now openly abandoned that claim, and are tendering for contracts from local authorities and public bodies?

Mr. HORE-BELISHA

If my hon. Friend desires to submit any particulars which call for consideration, my right hon. Friend will be only too happy to consider them, but I have answered his question as to the facts.

Mr. HANNON

Have the Treasury taken any steps to ascertain the extent to which co-operative societies have travelled outside their obligations under the Industrial and Provident Societies Act, 1893, by trading with people outside their own membership?

Mr. HORE-BELISHA

I can only repeat that if my hon. Friend desires to submit particulars my right hon. Friend will be only too glad to inquire; but what we are assured of in the meantime is that we are obtaining the taxes which have been imposed.

Sir W. DAVISON

Would not £5,000,000 of additional taxation be secured if these profits were taxed?

Mr. THORNE

Is the hon. Gentleman not aware that for the last 20 years the Wholesale Co-operative Society have been able to cater for the building of houses?