HC Deb 15 June 1948 vol 452 cc251-2
51. Sir John Mellor

asked the Chancellor of the Exchequer why the additional allowance, equivalent to £10 in foreign currency, is no longer available to cover running expenses of motor cars taken by residents in the United Kingdom for use on continental holidays; and if he will reconsider this.

Sir S. Cripps

No, Sir. The car allowance was withdrawn last Autumn at the same time as the basic travel ration because we could no longer afford it, and there has been no improvement in our foreign exchange position such as would justify an extra currency concession at the present time.

Sir J. Mellor

Would the Chancellor of the Exchequer agree that such an allowance would not ultimately cost any more in foreign currency than the purchase of a foreign railway ticket to the value of £10 in the United Kingdom in sterling which would then have to be converted into foreign currency to pay for it?

Sir S. Cripps

If a payment of £10 is made, of course it does not matter what it is made for if it is in foreign currency, I agree, but it is not necessary to spend as much as that on a travel ticket abroad.

Mr. Gammans

If people take a railway ticket from here to Italy and pay in sterling, a proportion of that has to go to the French and Italian railways. What is the difference between that and allowing people to spend an equivalent sum on petrol so that they can take their cars?

Sir S. Cripps

A great many people do not travel as far as Italy They go to Boulogne or Ostend.