HC Deb 03 July 1957 vol 572 cc1081-2
2. Mr. Brockway

asked the Minister of Labour if he will propose to the International Labour Office, through the representatives of Her Majesty's Government, that a convention be prepared for submission to the Governments concerned laying down uniform taxation of profits on investments in colonial and underdeveloped countries with a view to equalising the opportunities of such territories to obtain the capital they require.

Mr. Iain Macleod

No, Sir. The International Labour Office is not the appropriate body to adopt international agreements on this matter.

Mr. Brockway

While the proposal may be new, why should not the International Labour Office deal with matters of capital as well as conditions of labour? Would it not be greatly to the benefit of Colonial Territories if they did not have competition in capital from different countries, and for Kenya, which has to meet very 'high returns in Northern Rhodesia?

Mr. Macleod

Whatever the merits of that may be, the needs of the territories vary so much that it is inevitable that the taxes raised should vary, too. I think that a substantial contribution towards the idea which the hon. Gentleman has in mind should be made by Part IV of the Finance Bill now going through the House, which enables people to plough back profits without incurring liability to United Kingdom tax.