HC Deb 28 January 1958 vol 581 cc194-6
32. Mr. V. Yates

asked the Chancellor of the Exchequer if he will give an estimate of the percentage turn-over of imitation jewellery in this country which, by various means, escapes the full levying of Purchase Tax.

Mr. Amory

I regret that no such estimate is possible.

Mr. Yates

Is the Chancellor saying that, although he has large numbers of Purchase Tax officers whose duty it is to investigate the many complaints made by jewellery manufacturers, he has no estimate whatsoever of the large amount involved in manufacturers escaping Purchase Tax?

Mr. Amory

No, Sir. I am saying that it is extremely difficult to make any such estimate in the absence of concrete and definite complaints, and I suggest to the hon. Gentleman that it would be very helpful to me if anyone who knows that any abuse is taking place will forward concrete, specific and definite evidence, when I will have it investigated.

Mr. Nabarro

Is my right hon. Friend aware that the cause of a great deal of this alleged evasion is the confused state of the Purchase Tax Schedule? Is he aware that, in the case of imitation jewellery, if a manufacturer sends out an article of jewellery in a case, the whole invoice is subject to Purchase Tax, but that if he sends out the article separate from the case, the article of jewellery is taxed and the case not taxed? In such circumstances as these, surely it is the Chancellor's job to clear up this shocking mess.

Mr. Amory

I think my hon. Friend the Member for Kidderminster (Mr. Nabarro) has a Question a little later on the subject.

Mr. Nabarro

On an analogous matter, I agree.

33. Mr. V. Yates

asked the Chancellor of the Exchequer if he is aware of the widespread development of a black market in jewellery in Great Britain; and whether he will institute an inquiry into the matter with a view to taking immediate steps to safeguard the legitimate interests of this industry.

Mr. Amory

Recent allegations in the Press and elsewhere that there is widespread evasion of Purchase Tax in the jewellery trade are being followed up. So far as they have gone, official inquiries indicate that malpractices are not so extensive as has been suggested.

Mr. Yates

Has not the Chancellor read the responsible article in The British Jeweller, in which it is admitted, as it is by most manufacturers, that a black market is now taking place on an enormous scale, and that there has been talk about the large-scale corruption of the industry? In these circumstances, will not the Chancellor have an investigation and inquiry and let the House know the facts?

Mr. Amory

My attention has been directed to the article to which the hon. Gentleman has referred, but the answer is the one I have just given—that effective action on my part must turn on my being furnished with specific evidence of abuse.

34. Mr. V. Yates

asked the Chancellor of the Exchequer if he is aware that Messrs. Hill & Company, fashion jewellery manufacturers in Birmingham, are producing a large number of designs at considerable cost which are being copied and sold in various parts of the country at prices which indicate that Purchase Tax has been evaded; and if he will investigate the matter and report to the House.

Mr. Amory

A complaint by this firm about one of its designs is being investigated, and I will inform the hon. Member, of the result.

Mr. Yates

While thanking the Chancellor for that better Answer, may I ask him if he is aware that in April last this firm wrote to the Board of Trade calling attention to the fact that a wholesale list of its designs had been copied and pointing out the results of this practice? Will he confer with his colleagues about this matter when investigating it?

Mr. Amory

The advice I have is that only in the case of this one design have we received specific evidence, and in respect of that we are taking action. Any further specific evidence that is afforded us will again be the ground for an investigation.