HC Deb 28 February 1961 vol 635 c1356
18. Mr. Woodburn

asked the Chancellor of the Exchequer if he is aware that considerable national economy could be achieved by a reduction of the peak-load demand for electricity, and that the use of block storage heaters, as an important contribution, is frustrated by the Purchase Tax which prevents its full exploitation; and whether, with a view to stimulating the use of block storage of electricity, he will consider freeing such heaters from Purchase Tax.

Mr. Selwyn Lloyd

I am fully aware of the importance of the off-peak use of electricity. I know that the manufacturers have not hitherto sold block storage heaters for domestic use, though I believe consultations are proceeding with them about the prospects of producing models which would appeal more specifically to the domestic consumer. I am afraid that the answer to the last part of the Question is, "No, Sir".

Mr. Woodburn

Is the right hon. and learned Gentleman aware that both the electricity boards and the electrical trade are convinced that this would make a very big contribution to the reduction of the peak load, and that the economies to the nation of a reduction in the peak load would be commensurately much greater than they would be by a reduction in the consumption of electricity at any other time? Will he agree that this would be a greater advantage to the nation?

Mr. Lloyd

I am aware of all these general factors, but I think it would be a very new principle to say before an article was produced that one of the terms on which it was being produced was that there should he no Purchase Tax upon it.

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