HC Deb 27 November 1952 vol 508 cc597-8
22. Mr. R. Bell

asked the Chancellor of the Exchequer whether, in view of the dislocation at present being caused in the retail motor trade by uncertainty over the future incidence of Purchase Tax, he will make a statement.

26. Mr. Edelman

asked the Chancellor of the Exchequer whether he is aware of the threat to trade and employment in the motor industry arising out of the present level of Purchase Tax; and what steps he will take in this respect to assist the motor industry in its difficulties.

Mr. Boyd-Carpenter

My right hon. Friend has under consideration various representations which have been made to him on this subject, but I am not at the moment able to make any statement.

Mr. Edelman

Is the Financial Secretary aware that this is now an urgent matter? This tax, imposed in inflationary circumstances, today puts a severe handicap on the motor industry in the present deflationary circumstances. Is he also aware that it is the forecast of a leading Midland manufacturer that unless this tax is reduced there will be severe unemployment in the motor industry before Christmas?

Mr. Boyd-Carpenter

All relevant considerations will be very carefully considered by my right hon. Friend.

Mr. G. R. Strauss

Does the Minister's reply mean that there is a possibility of some announcement being made on this matter during the next few weeks, or the next month or two, before the Budget?

Mr. Boyd-Carpenter

The right hon. Gentleman ought not, I think, to read into the answer anything more than is actually in it.

Captain Soames

Will my hon. Friend consider having the Purchase Tax on motor cars collected by the licensing authorities, and in that way obviate the necessity of the retailer carrying a large amount of Purchase Tax on his books and risking, if the tax were taken off, a considerable loss?

Mr. Boyd-Carpenter

That does not arise on this Question.

Mr. Gaitskell

In view of the importance of restoring the export trade in motor cars, will the hon. Gentleman see that this matter is raised in the Commonwealth Conference which is about to start?

Mr. Boyd-Carpenter

I should want notice of that question.

Mr. Edelman

To end uncertainty in this matter and to prevent what is becoming more and more like a buyers' strike, will the hon. Gentleman treat this as a matter of extreme urgency and make a statement about the position at the first possible opportunity?

Mr. Boyd-Carpenter

This Government never indulge in unnecessary delay.

Mr. Manuel

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