§ 12. Mr. Jayasked the Chancellor of the Exchequer whether, in view of the further threat to the textile industries from 528 import restrictions imposed by the Australian Government, he will make an immediate reduction in Purchase Tax on textiles.
§ Mr. MaudlingContact has been established with the Australian Government with a view to ascertaining the likely effect of their cuts on textiles. The right hon. Gentleman will not expect me to forecast changes in taxation.
§ Mr. JayAmongst all the subjects which the Chancellor bears in mind at Eastertide, will he give a very high priority to this one? Does the hon. Gentleman realise that hon. Members on both sides of the House are pressing for some tax relief in the present situation?
§ Mr. MaudlingI can no more make a statement about the priorities in the mind of my right hon. Friend than of his intentions, but I can assure the right hon. Member that my right hon. Friend is well aware of the views held in the House on this matter.
Mr. H. WilsonIs the hon. Gentleman aware of the statement recently made by a distinguished Lancashire industrialist to the effect that Lancashire can only deal with its problems on the basis of flexibility and that flexibility is impossible because at one end of the scale there are the Indian imports and, at the other end, there is the Purchase Tax, which makes any changes in production policy quite impossible?
§ Mr. MaudlingMany similar calculations are made, but I cannot see that they can be necessarily accepted as giving the whole picture. As the right hon. Member is aware, a statement of Government policy on this matter is impending.
§ Mr. GaitskellCan the hon. Gentleman tell us whether the contact which he assures us is being maintained with the Australian Government will lead to any action by the Australian Government in this matter?
§ Mr. MaudlingThat rather depends on the nature of the discussion.
§ Mr. GaitskellWhy not tell us about it?