HC Deb 01 November 1949 vol 469 cc204-5
49. Mr. Heathcoat Amory

asked the Chancellor of the Exchequer if he will reconsider the proposed withdrawal of the 5s tax concession on agricultural tractors which is notified to take place on 30th June, 1950.

Mr. Glenvil Hall

I am receiving a deputation on this subject from the National Farmers' Union in the course of the next few days, but I am bound to say that as at present advised my right hon. and learned Friend feels that the withdrawal of the wartime concession is fully justified.

Mr. Amory

Does not the right hon. Gentleman agree that such a sharp increase from 5s. to £12 is a tax on productive equipment and as such is undesirable, and is a discouragement to the fullest use of mechanisation? Furthermore, is it not likely to fall more hardly on the smaller and less prosperous farmer who, in the course of running his farm, must sometimes haul a load and cannot afford a wide range of mechanical equipment?

Mr. Glenvil Hall

This concession was only made during the war because of the general shortage of vehicles and it could not go on for ever. As it is, farmers have an advantage over ordinary commercial users and there is no reason in our view why it should continue indefinitely.

Mr. Oliver Stanley

Could the right hon. Gentleman say under what authority this concession is withdrawn, and whether it is a matter which could be discussed by this House?

Mr. Glenvil Hall

The concession was withdrawn by a Statutory Rule and Order and I cannot for the moment charge my memory as to whether it is still open to be discussed.

Mr. Joynson-Hicks

Will the right hon. Gentleman bear in mind that this concession has been continuing for something like five years after the end of the war, and has come to be a basis of the costings of production of agriculture and that it will create grave hardship if it is now withdrawn on the excuse that it was merely a wartime provision?

Mr. Glenvil Hall

Surely considerations of that kind are taken into account at the annual review of prices.

Mr. Vane

When the right hon. Gentleman receives the deputation, will he try to distinguish between tractors which may be used to haul some hundreds of tons of sugar beet on the road and those that make only occasional journeys, most of which are in the possession of small farmers?

Mr. Glenvil Hall

I think the hon. Gentleman can take it that we shall know exactly what is being discussed.