HC Deb 22 March 1956 vol 550 cc1456-8
28. Mr. Ellis Smith

asked the Chancellor of the Exchequer if he will exempt all British manufactured pottery seconds sold in the home market from Purchase Tax.

Mr. H. Brooke

No, Sir. Any scheme of that kind would break down.

Mr. Ellis Smith

Does the Financial Secretary not agree that it is the policy of the industry to maintain the high quality of its products so as to retain its enormous export trade? If the right hon. Gentleman is not prepared to do something on these lines, what will be the position of the industry? How is it to dispose of pottery seconds of high quality.

Mr. Brooke

I appreciate the thoughts underlying the hon. Member's Question, but if he will look into the practical implications he will see that it would be quite impossible to define seconds in such a way as to make sure that there was no unfair discrimination against goods which were not seconds but were produced to not quite so high a standard of quality.

Mr. Ellis Smith

In view of the fact that this is a special technical problem, is the right hon. Gentleman prepared to receive a representative delegation and, if so, receive it sympathetically?

Mr. Brooke

I will willingly have a talk with the hon. Member about the matter in the first instance.

Mr. Fell

Will my right hon. Friend take no such action while British people are prepared to accept second-best?

32. Mr. Marlowe

asked the Chancellor of the Exchequer how much revenue he estimates would be lost to the Treasury if the hotels and restaurant industries were relieved of Purchase Tax on all the essential implements of their trade, such as carpets, curtains, linen, cutlery and kitchen equipment; and, in so far as this information is not readily available, if he will institute an inquiry.

Mr. H. Brooke

The information for which my hon. and learned Friend asks is not available and could only be obtained, if at all, by means of extensive special inquiries. I see no prospect that it would be possible to relieve particular users, such as hotels, of Purchase Tax on the goods they buy, and consequently I do not think that the cost of making such inquiries would be justified.

Mr. Marlowe

If my right hon. Friend does not know how much it will cost, how can he know whether we can afford it or not? Is he aware that the tourist trade is such an important dollar earner, that Purchase Tax forces up hotel prices and thereby keeps trade away, and that these are essential implements in the hotel trade? Will he do something about it?

Mr. Brooke

This is not a question of the Chancellor of the Exchequer affording it or otherwise, but of the principles of the Purchase Tax—and the Purchase Tax is based on charging tax irrespective of the particular buyer.

Mr. H. Wilson

While we all recognise the right hon. Gentleman's rather predatory ideas about Purchase Tax revenue, does he not recall that during the Chancellorship of Sir Stafford Cripps there was very special discrimination in favour of those hotels which had dollar visitors? Since it was done for them, and they are a special group, why does the right hon. Gentleman now say that it is not practicable or desirable?

Mr. Brooke

A scheme was operated for one year, 1950–51, and it was decided not to carry it on beyond that period.