HC Deb 28 July 1955 vol 544 cc1332-3
26. Mr. Crouch

asked the President of the Board of Trade the number and type of industries in this country subsidised by the Government.

Mr. P. Thorneycroft

Apart from various forms of assistance in connection with food and agriculture, very small payments in the nature of subsidy are made by the Government to two specialised industries—watchmaking and the motor car industry in respect of certain racing cars. In the latter case the payments represent the reimbursement of Purchase Tax paid.

Mr. Crouch

Will my right hon. Friend keep an eye on this position to see if, when the opportunity arises, he can reduce subsidies, because that would help the Chancellor of the Exchequer in keep-down taxation?

Mr. Emrys Hughes

Could the right hon. Gentleman explain why it is necessary to subsidise racing cars? Could not the motor industry, which is so prosperous, do that itself?

Mr. Thorneycroft

In this case it is scarcely a subsidy; it is more of a repayment of Purchase Tax to encourage the development of racing.