HC Deb 19 May 1953 vol 515 cc1852-3
11. Captain Ryder

asked the Chancellor of the Exchequer if he has considered the letter sent to him by the hon. and gallant Member for Merton and Morden regarding the position now facing those firms making gas water-heaters; and whether he will take action to assist the recovery of this industry.

Mr. R. A. Butler

Yes, Sir. I note that my hon. Friend's constituent attributes his trading difficulties to the incidence of Purchase Tax. I hope that the reduction by one-quarter in the tax on his product which I announced in the Budget will therefore be of assistance to him.

Captain Ryder

Will my right hon. Friend bear in mind that it is the view of this industry that the reduction will be quite inadequate, and that gas water-heaters could, in fact, play an important part in fuel efficiency? Would my right hon. Friend also bear in mind that if we are not careful this will be a diminishing return?

Mr. Butler

I realise all these factors, but there are a great many difficulties in reducing Purchase Tax at one time more than I did in my Budget.

Captain Ryder

Would my right hon. Friend consider whether there could not be some easement in the matter of hire purchase?

Mr. Butler

That is an aspect of this matter which is often brought before me. But it is another question.