§ 7. Dr. Broughtonasked the Chancellor of the Exchequer what business organisations have made representations to him about the question of removing Purchase Tax from wool cloth.
§ Mr. H. BrookeRepresentations on this subject have been made to my right hon. Friend by the Wool Textile Delegation and the Bradford and Huddersfield Chambers of Commerce. There have been no complaints from individual traders.
§ Dr. BroughtonWill the right hon. Gentleman say why he has ignored the appeal of these responsible bodies? Is he aware that, as there is no Purchase Tax on textiles made of cotton or synthetic fibres, the West Riding of Yorkshire greatly resents the imposition of Purchase Tax on wool cloth?
§ Mr. BrookeI was about to give the hon. Gentleman the answer to his supplementary question in reply to the next Question on the Order Paper.
§ Mr. HirstIs my right hon. Friend aware that the excellent relationship between the Wool Textile Delegation and the Government has been built over a great number of years to the enormous advantage of successive Governments, irrespective of party? Is he further aware that the excellent arrangements, which have been helpful to both sides, are for the first time seriously impaired because of the Government's stubborn attitude in this matter?
§ Mr. BrookeI am very appreciative indeed of the past relationship. I have every hope that it will continue, because I think that a great many people realise and understand the reasoning behind the Government's policy in this matter.
§ 8. Dr. Broughtonasked the Chancellor of the Exchequer for how long he proposes to retain the Purchase Tax on wool cloth; and what conditions will be required to be satisfied before he will be able to remove it.
§ Mr. H. BrookeAs has been explained to the hon. Member before, the problem of the small tailor makes it necessary to retain this tax as a counterpart to the tax on clothing.
§ Dr. BroughtonIs the right hon. Gentleman aware that the arguments which he puts forward for the retention of Purchase Tax on wool cloth are weak and will not stand close examination? Will he look at this question again, and take useful action at once?
§ Mr. BrookeThe difficulty is that the only way effectively to collect tax on the suits which the small tailors make is by charging the tax on the cloth which they buy.
§ 9. Dr. Broughtonasked the Chancellor of the Exchequer what percentage of the total annual Exchequer revenue comes from the Purchase Tax on wool cloth.
§ Mr. H. BrookeAbout 0.04 per cent.
§ Dr. BroughtonWill not the Treasury forgo this tiny percentage of revenue in order to remove an irksome injustice? Is the right hon. Gentleman not aware that this imposition of Purchase Tax is looked upon as being unjust, and that it is thoroughly annoying and an insult to an old and great industry?
§ Mr. BrookeThere is a real difficulty here. To do what the hon. Member suggests would be to give the small unregistered tailors a 5 per cent. price advantage over the registered tailors who are offering exactly the same article in direct competition.