§ 48. Mr. Gallacher
asked the Chancellor of the Exchequer whether in view of the greatly increased industrial profits recorded last year, he will assure the House that the cost of air-raid precautions in factories, especially those on armaments contracts, will be borne by the companies concerned and not allowed to be deducted from income assessable for tax?
§ The Chancellor the Exchequer (Sir John Simon)
The hon. Member's proposal, as I understand it, is that legislation should be passed to deprive traders of such deduction in the computation of their profits for Income Tax purposes as the existing Income Tax law authorises in respect of expenditure on air-raid precautions. I do not agree with this suggestion.
§ Mr. Gallacher
In view of the fact that the Chancellor of the Exchequer has been so kind as to relieve the armament makers, who are getting big profits, of the main burden of the National Defence Contribution, will he not consider making them responsible for the air-raid precautions around their own factories?
§ 51. Mr. Simmonds
asked the Financial Secretary to the Treasury whether he is aware that important shelter-construction work in connection with air-raid precautions is being held up pending the Government statement relative to Income Tax allowance; and when an announcement will be made?
§ Lieut.-Colonel Colville
The answer to the first part of the question is in the negative. As regards the second part, I hope that it may be possible to give my hon. Friend the required information before the end of the week.
§ Mr. Simmonds
In the case of shelters at armament factories, as those factories would be virtually taken over by the 208 Government on the outbreak of hostilities, would it not be eminently fair that Income Tax allowance should be granted?