HC Deb 14 May 1959 vol 605 cc1399-400
4. Mr. Swingler

asked the Chancellor of the Exchequer his estimate of the annual saving in administrative costs which would result from the abolition of Entertainments Duty.

The Economic Secretary to the Treasury (Mr. F. J. Erroll)

There would be a small saving, but a precise estimate cannot be given.

Mr. Swingler

As much paper work is involved in collecting this tax, and in view of the fact that the death rate from Entertainments Duty on cinemas is so high—866 cinemas have closed in the last five years—does not the Economic Secretary think that it would be a good idea to make this saving now, even if it is only a small one?

Mr. Erroll

No. The saving would be very small, and the cost of collection is as economical as in other fields of Customs and Excise work.

5. Mr. Swingler

asked the Chancellor of the Exchequer what proportion of the revenue from Entertainments Duty comes from cinemas currently operating at a loss; and what estimate of the closure of cinemas he has made in calculating the revenue from Entertainments Duty for the coming year.

Mr. Erroll

I regret that the information asked for in the first part of the Question is not available. As regards the second part, it is not the practice to disclose the basis on which Budget estimates are made.

Mr. Swingler

Is not the Economic Secretary aware that the Entertainments Duty on cinemas is being collected from cinemas which are operated at a loss? Is not he aware that this is grossly unfair, and, in view of the widespread interest in the very respectably supported new Clause recently put down on the Notice Paper for the reduction of Entertainments Duty on cinemas through the Finance Bill, will he say if we should now take it that the Chancellor has suffered a change of heart on this subject?

Mr. Erroll

I think I should remind the hon. Gentleman that the duty is levied on the cinema-goer when he enters the cinema, and the cinema passes on the duty to the Customs and Excise. This is not a tax on cinemas as such. Indeed, a number are exempt. As regards the new Clause on the Notice Paper for the Finance Bill, I am sure that the hon. Gentleman would not expect me to anticipate any debate that might take place upon it.

9. Mr. Gower

asked the Chancellor of the Exchequer the approximate loss of Entertainments Duty due to closures of cinemas in Wales during the last twelve months; and if he will make a statement.

Mr. Erroll

I regret that it is not possible to make the estimate for which my hon. Friend asks, and in the circumstances my right hon. Friend has no statement to make.

10. Mr. Gower

asked the Chancellor of the Exchequer how many representations he has received from cinema companies, and from individuals in Wales, since 1st January last, regarding the effect of Entertainment Duty upon cinemas.

Mr. Erroll

Nine up to the end of last week.

Mr. Gower

Does my hon. Friend recall how during the most trying days of the war many tributes were paid to the contribution of the cinema industry in sustaining morale? At this moment when the Home Secretary is concerned about certain forms of hooliganism, might it not be a good thing in his future assessment of the position that notice should be taken of the contribution which the cinema industry has made in this field too?

Mr. Erroll

Yes, Sir. I think it is possible to say as much of many different forms of desirable entertainment.