HC Deb 19 September 1940 vol 365 c196
57. Mr. Gledhill

asked the President of the Board of Trade whether he is aware that the introduction of the Purchase Tax will have practically the same effect as the Limitation of Supplies Order; and whether he will therefore cancel the latter Order?

The Parliamentary Secretary to the Board of Trade (Major Lloyd George)

No, Sir. I would refer to the reply given on 13th August by my right hon. Friend the Chancellor of the Exchequer to a Question by the hon. Member for Frome (Mrs. Tate), in which he explained that the objects of the two measures do not cover the same field.

Mr. Gledhill

Is it not highly likely that a continuation of the Limitation of Supplies Order in addition to the Purchase Tax will cause heavy unemployment, and would it not be wise for the Government to do a little thinking before that happens?

Major Lloyd George

The thinking was done beforehand, and the Government are keeping a very close eye on any possible effects upon employment. It is obvious that the two Measures have different objects, and it is quite possible that while a limitation of supplies might be achieved to a certain extent by a tax, the object of the tax is a different one.

Sir Herbert Williams

Is it not the case that up to the present the Limitation of Supplies Order has done far more harm than good?

Major Lloyd George

I entirely disagree with that view.