§ Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."
§ Mr. C. WilliamsI think that in all probability the learned Solicitor-General can explain this matter. It is' connected with the farming industry, and is very important from the farmer's point of view. It relates to Income Tax in connection with livestock. I think that we should have a further explanation of what its 1102 effect will be, and whether it is intended for the punitive purpose of extracting more money from the members of the industry, or whether it is to encourage production of really valuable livestock. I should also like to know whether the Government have had any contact with the National Farmers Union on this matter. Have they consulted with them and with others closely interested, as some of us are, in the question of raising pedigree livestock? I should like a general explanation of the purpose of this Resolution, and to know the amount of money which the Government expect to get out of it.
§ The Financial Secretary to the Treasury (Mr. Glenvil Hall)The object of this Resolution is to enable legislation to be included in the Finance Bill, to permit farmers and breeders who produce trading stock animals for breeding purposes, or for milk and egg production, to treat their animals either as stock-in-trade or capital assets, whichever they prefer, under certain limitations. They have been permitted to do this since 1942 by arrangement with the Inland Revenue. There was a case in the courts recently, and counsels opinion has been sought. It has been decided that legislative sanction should be given to what has become, over the last few years, an established practice. There is no new money in it. It will be giving legal sanction to what has been a practice for several years. The Farmers' Union has been consulted on this, and approve of the legislation which will be inserted in the Finance Bill.
§ Mr. C. WilliamsHas the right hon. Gentleman consulted with the landowners' association, because they are interested in the raising of livestock? I very much appreciate what he has said.
§ Captain CrookshankI think that the right hon. Gentleman said that he had received certain representations from some sections of the agricultural industry. I understood that this was something which was considered desirable in general by the agricultural industry. It was for that reason that I did not make any comment on the right hon. Gentleman's speech, because I propose to wait to see the exact extent of the Clause, when it is in the Finance Bill. I presume we can take it that this is generally agreeable to the industry.