HC Deb 13 June 1940 vol 361 cc1381-2
58. Mr. Stokes

asked the Chancellor of the Exchequer whether, in view of the 100 per cent. Excess Profits Tax, he will consider instructing the purchase departments of other Ministries to give up their technical costs branch, so far as it operates for the assessment of profits on contracts, thereby setting a large amount of man power free for other purposes, and immediately causing a speed-up in production by avoiding the delays caused by such cost investigation, together with an actual reduction in cost to the taxpayer?

Sir K. Wood

Instructions have already been issued which will obviate delays which might otherwise be caused by cost investigations at munition works. I cannot, however, agree with the hon. Member when he suggests that the operation of a 100 per cent. Excess Profits Tax removes the necessity for ordinary price fixing.

Mr. Stokes

While accepting the right hon. Gentleman's expression of opinion that 100 per cent. Excess Profits Tax docs not necessarily remove the necessity for price fixing—though it appears to have done so in the case of the limitation of dividends—is he aware of the real difficulties of these cost investigations and how unnecessary they are in the majority of cases? When will his instructions become effective?

Sir K. Wood

They have already been issued and they will, I hope, obviate the difficulties to which the hon. Member refers.

Sir H. Williams

Will the right hon. Gentleman give attention to the fact that the main cost of munitions is not profits but other costs, and will he continue cost investigations in order to prevent the exploitation of other sections of the community?

Sir K. Wood

I agree with the hon. Member from that point of view.