HC Deb 22 June 1943 vol 390 cc1006-8
58. Mr. Kirkwood

asked the Chancellor of the Exchequer whether he has considered the request from 2,500 workers of Harland and Wolffe's shipbuilding yard for Income Tax to be deducted as it is earned; and what answer he has returned to this request?

64. Sir Adam Maitland

asked the Chancellor of the Exchequer whether he has finished his consideration of the many representations made to him that Income Tax should be deducted on current earnings; and whether he is now in a position to make a statement on the subject?

66. Sir William Davison

asked the Chancellor of the Exchequer whether, in view of the adoption in the United States of America of the Pay-as-you-go method of collection of Income Tax, he has further considered establishing this, or some similar, method in this country as soon as possible, in view of the urgency of the matter and the general consensus of opinion in favour of its adoption; and has he any statement to make?

Sir K. Wood

I have considered the letter to which my hon. Friend the Member for Dumbarton Burghs (Mr. Kirkwood) refers. As I informed the House during the Budget Debates, the Board of Inland Revenue are at present engaged in the investigation of the question of deducting tax from wages on a current earnings basis.

Mr. Kirkwood

Is the Chancellor of the Exchequer aware of the fact that a deputation came here six months ago representing the whole of the ship-building industry of this country as far as the workers are concerned, appealing to him to take the tax off the money as it is earned; and not only that, but that 18 months ago I presented to him a scheme that was drafted by the best actuaries we have in the West of Scotland, so that the matter has been before him all that time and the Government are still considering what they are going do about it?

Mr. Pethick-Lawrence

Would the Chancellor of the Exchequer tell us whether he is able to accede to the request I put before him that he should get some account of the American scheme and in the early future have a White Paper issued about it?

Sir K. Wood

Yes, Sir, I communicated with America to meet the wishes of my right hon. Friend and other Members of the House with a view to placing in the Library some account of the debates there, which, I think, will give a fairly good picture of what has happened there.

Sir W. Davison

What is the insuperable difficulty of putting into force so desirable, and so much desired, a reform; and is my right hon. Friend aware that these payments have often to be made by men who are receiving reduced wages and are sometimes out of employment, and that it is a very difficult position in which they are placed? Surely, if America is able to make the necessary arrangements, it is possible for us to deal with the matter in a similar way.

Mr. Kirby

Why is it necessary to have this long consideration of this matter, bearing in mind the fact that a scheme was submitted to the right hon. Gentleman which is very acceptable to workers and employers alike at least 12 months ago?

Sir K. Wood

As I stated in this House, I have kept in close touch with the Trades Union Congress and employers on this matter, and up to some short time ago there was no plan which was really regarded as acceptable and fair. And I would point out the difficulties that have been shown in other countries which have endeavoured to adopt this scheme. So far as the difficulties in the matter are concerned, which I hope it may be possible to overcome, I would refer my hon. Friend to the White Paper.

Mr. Kirkwood

Is it not the case that the whole of the Civil Service has this in operation now, and why should it be in operation for the Civil Service and cannot be put into operation for the shipyard workers, where the men are heavily hit?

Sir K. Wood

Perhaps my hon. Friend will look at the White Paper. I will send him a copy.

Sir H. Williams

Is it not a fact that the major difficulty arises out of the proposal to cancel 12 months' liability to tax?

Sir W. Davison

Is it not a fact that you can never collect two years' tax in one year? Is it not much better to make a sacrifice and put things straight?

Sir A. Maitland

In view of the general interest in this question inside the House and outside, and its great importance not only to industry but to workmen themselves, will my right hon. Friend expedite the conclusions of the Treasury as early as possible and not pay too much regard to conditions in America but to the effect which the present tax administration is having in this country?

Sir K. Wood

I certainly will, but I think my hon. Friend will be the first to have regard to the many difficulties arising in connection with this matter.