HC Deb 30 April 1957 vol 569 cc1-3
2. Mr. Stevens

asked the Chancellor of the Exchequer what would be the estimated annual cost to the Exchequer of granting a depletion allowance for the cost of minerals worked in the United Kingdom on the basis that the allowance would be claimable in respect of all minerals held by mineral undertakings, as at 5th April, 1957, if the allowance were calculated over the life of the reserves on the basis of the fraction set out in Section 307 (2) of the Income Tax Act, 1952, and assuming the annual output to be that achieved in the latest year for which figures are available.

The Chancellor of the Exchequer (Mr. Peter Thorneycroft)

I regret that the information on which to base such an estimate could not be obtained without undue expenditure of time and labour.

Mr. Stevens

Does my right hon. Friend recall that the Royal Commission, in fact, recommended such an allowance, albeit limited to after-acquired properties; and does he realise that the withholding of the allowance virtually means that the extractive industries are being taxed upon the consumption of their own substance?

Mr. Thorneycroft

I am familiar with the recommendation of the Royal Commission on the subject, but to check these properties would mean an investigation of each one to see whether it was on a royalty or an ownership basis, and I think that for the purpose of obtaining the figure it would be a great labour.

Mr. Stevens

I wonder whether, in view of the fact that the then Economic Secretary said in the debate last June that the Government were considering the Royal Commission's recommendations, my right hon. Friend can say that further consideration is being given urgently to this important question?

Mr. Thorneycroft

We have not included it in the current Finance Bill.