§ 17. Mr. W. G. Bennettasked the Chancellor of the Exchequer what it is estimated would be the cost to the Treasury in the present financial year of abolishing the tax on all cinema seats up to and including the 1s. seats.
§ Mr. R. A. ButlerThe cost is conjectural, depending on the extent to which higher prices were reduced to take advantage of the exemption of the 1s. seat; but it would probably be in the region of £15 to £20 million in a full year and proportionately less in the present financial year, according to the date of operation.
§ Mr. BennettIs the Minister aware that the estimate of the trade is that this figure would be around £3 million, and that that was the sum contributed more or less in respect of this particular class of cinema entertainment last year? If this sum was all that was involved will the Chancellor agree to reconsider the whole matter?
§ Mr. ButlerThe answer to the last part of the supplementary question is "No, Sir." The answer to the earlier part is that I can only give my own estimate, which is rather adjusted to take account of the probability that higher rates might be reduced to take advantage of the shilling exemption.
§ Mr. RankinIs the right hon. Gentleman aware that there does exist the feeling, which is not confined to one side of the House, that there is tax discrimination against the cinema trade? Will he not try to do something about that?
§ Mr. ButlerI have been aware for some years, either from the other side of the House or from this, that there is always a point of view to be put from the cinema trade, and no doubt we shall hear more of it later in the summer.