§ 12. Mr. Fisherasked the Chancellor of the Exchequer whether it is now the Government's policy to tax advertising.
§ Mr. Selwyn LloydMy hon. Friend will have gathered from my Budget speech that the Answer to his Question is Yes, when the medium used is television.
§ Mr. FisherBut is my right hon. and learned Friend aware that his reference in the Budget speech to the television companies being bitten by the hand that fed them inferred to most of us that the programme companies were to bear the tax themselves, and that this was broadly acceptable in view of the high level of television profits, but that now that it is to be passed on and it becomes a tax on advertising—and on a particular form of advertising—it is less acceptable to many of my hon. Friends?
§ Mr. LloydIf my hon. Friend will observe what is happening, I think that he will find that in at least two cases the programme companies propose to bear part of the charge.
§ Mr. JayDoes the Chancellor regard television as another unique industry, and can he tell us why he selected this particular form of advertising for attack?
§ Mr. LloydI think that the industry is unique in the sense that it has a near-monopoly aspect. General taxation of advertising is a very much wider topic, and I believe that the right hon. Gentleman himself had some experience of the difficulties there in his day.
Mr. Mac ArthurIs my right hon. and learned Friend aware that the bulk of the television contractors are passing on the whole of the tax to the advertisers? Is he aware of the very real concern there is that this tax, far from affecting the financial strength of the television contractors will, in fact, considerably weaken the financial position of the lesser advertising media, such as the provincial Press and the weaker sections of the periodical Press?
§ Mr. LloydMy hon. Friend is trying to go rather further than it is appropriate to go in Question and Answer. After all, we will have an opportunity to debate the matter during our discussion of the Finance Bill.