HC Deb 06 June 1951 vol 488 cc1093-6

7.30 p.m.

Mr. Jay

I beg to move, in page 8, line 10, to leave out from "fifty-one," to the end of line 11.

The Committee will recall that on Second Reading I explained that owing to certain difficulties of definition we found it was not practicable to carry out the proposal contained in the Budget speech to place a 66⅔ per cent. Purchase Tax on portrait photographs made from materials which had not borne tax. I stated that we should, therefore, introduce an Amendment on the Committee stage to strike out that proposal. We have carried out that undertaking in this Amendment.

Mr. Osbert Peake (Leeds, North)

This Amendment is consequential upon a subsequent Amendment to the Fifth Schedule, and I think it would be more convenient to deal with the matter when we reach the Schedule.

Amendment agreed to.

Motion made, and Question proposed, "That the Clause, as amended, stand part of the Bill."

Mr. Peake

It will not have escaped your notice, Colonel Ropner, or that of the Committee that in relation to this Clause, which deals with Purchase Tax, we have not tabled any Amendments. That is not because we do not take a great interest in the subject of Purchase Tax. Indeed, at a later stage we shall have a good deal to say about it. Clause 12, however, merely gives legislative effect to the Fifth Schedule, which embodies the Chancellor's detailed proposals for Amendments to the Purchase Tax this year.

In considering what Amendments we could move to the Clause or to the Schedule, we have had to pay careful attention to the 24th Budget Resolution. Two years ago the Chancellor prohibited us altogether from having a discussion on the Purchase Tax by the wording of the general Resolution upon which the whole Budget debate hinges. Last year we were permitted to debate only the three main rates of Purchase Tax, without reference to any specific item at all, and on this occasion the Chancellor's general Resolution, the 24th Budget Resolution, enables us to discuss only two matters—first of all, articles in certain groups to which the Fifth Schedule itself relates and, second, we may discuss under the Resolution amendments to make provision for the giving to the Treasury of advice and assistance in the exercise of its powers under the Finance Act of 1948 by a body to be constituted for the purpose. It appears to us that, limited, as we are, by the terms of this Budget Resolution, that it would be much more convenient to discuss the Chancellor's detailed proposals regarding Purchase Tax and any Amendments which we may table to them when we come to the Fifth Schedule to the Bill. So far as general considerations relating to Purchase Tax are concerned, we can, I think, have a very wide debate on the new Clause which stands in the name of my right hon. Friend the Member for Aldershot (Mr. Lyttelton) and that of other right hon. and hon. Members on this side of the Committee, which is to be found on page 1171 of today's Order Paper—that being the new Clause, permitted to be moved by the Budget Resolution, which is to establish an advisory body in relation to Purchase Tax matters on the same lines as the Import Duties Advisory Committee.

When we reach that Clause I think we shall be able to discuss very widely many of the main principles relating to the Purchase Tax. In these circumstances, I think it would be wise for me to advise my hon. Friends that we cannot have any very wide debate on Clause 12 and that it will be more convenient to discuss the Chancellor's detailed proposals when we come to the new Schedule and to discuss general principles when we come to the new Clause standing in the name of my right hon. Friend.

The Temporary Chairman (Colonel Ropner)

Perhaps I can help the Committee. The Chairman of Ways and Means has told me that at a later stage of the Bill he will allow a full discussion on Purchase Tax provided, of course, that new Clauses or Amendments to Schedules are within the term of the Ways and Means Resolution.

Mr. Gaitskell

I am much obliged to you, Colonel Ropner, and to the right hon. Gentleman. I quite agree with the procedure suggested. I think we can discuss the various problems connected with Purchase Tax more appropriately on the Schedule and on the new Clause.

Clause, as amended, ordered to stand part of the Bill.