HC Deb 22 November 1949 vol 470 cc194-6
46. Mr. Selwyn Lloyd

asked the Chancellor of the Exchequer on what Vote are included rewards paid to persons giving information with reference to alleged offences under the Exchange Control Act.

Sir S. Cripps

Any such rewards which are paid in future will be charged against the Treasury Vote, Subhead H, Exchange Control.

Mr. Selwyn Lloyd

Is the right hon. and learned Gentleman aware that this practice of paying people money to give information about alleged offences is on the whole repugnant to ordinary people? Will he ensure that in no case is money ever paid to informers who have incited to the commission of an offence?

Sir S. Cripps

I am not aware, especially in view of the fact that every Government for many years past have had such a system in operation in regard to Customs, the Inland Revenue, the Post Office, the Metropolitan Police, the Board of Trade, and the Ministry of Food.

Mr. Frank Byers

Would not the Chancellor look at this question again and see that it is the extension of this system which is repugnant to many people at the present time? Would he not look at it again?

Sir S. Cripps

I am not inclined to look at it again. I see no reason why offenders against the Exchange Control Act should be particularly lightly dealt with.

Mr. Chetwynd

Is my right hon. and learned Friend aware that the offences themselves are repugnant to the people of England?

50. Mr. Keeling

asked the Chancellor of the Exchequer to what extent his regulations make informers about breach of the exchange regulations liable for Income Tax on the rewards they receive from the Treasury, and what expenses may be deducted.

Sir S. Cripps

These rewards will not be liable to Income Tax; but this is a matter of Income Tax law and not of regulations.

Mr. Keeling

But what about the second part of the Question? May I give a concrete example? Supposing a person crosses the Channel or the Atlantic for no other purpose than to spy on his fellow-passengers, would his fare be considered a deductible expense?

Sir S. Cripps

Not unless he was travelling on business in the normal way.

53. Mr. Blackburn

asked the Chancellor of the Exchequer what new decision he has reached as a result of his reconsideration of She subject of payments to informers for giving information which leads to convictions under Exchange Control Regulations.

Sir S. Cripps

None, Sir.

Mr. Blackburn

Is not the Chancellor aware that this practice of making payments to informers conflicts with the good sense and the moral sense of the British people; and is it not illogical for him, as the main Socialist to advocate co-operation with the Communists before the war, to raise this matter again, because of the fact that the Tories have done it before? The fact that the Tories have done it before, is no reason for us to do it now.

Sir S. Cripps

In every democracy that I know of this is common practice, and if properly administered does no harm.

Viscount Hinchingbrooke

Is the Chancellor aware that, in the view of a very large number of persons, some of the provisions of the Exchange Control Aot are not consonant with the free society in which we believe; arid that, however much we may deplore it and enjoin observance of the law, payments to informers will inevitably result in an extension of tax evasion?

Mr. Speaker

The Question asked what new decision had been reached, and the answer was "None." Surely that completely answered the Question.

Mr. Blackburn

In view of the very grave issues which are involved, I shall raise this matter on the Adjournment at the earliest opportunity.