§ 22. Mr. Wadeasked the President of the Board of Trade whether, in view of the discriminatory effect upon small firms of the £2,000 minimum value limit to the duty free import of machinery, where similar machinery is not procurable in the United Kingdom, he will now take steps to abolish this minimum value limit.
§ Mr. ErrollNo, Sir. The £2,000 limit was introduced on the advice of the Wilson Smith Committee as a condition of resuming the duty-free licensing of machinery in 1954. The Committee gave thorough consideration to the effect of the limit on smaller firms, but concluded that it was both essential and reasonable. This advice is still valid.
§ Mr. WadeDoes not the right hon. Gentleman agree that, where new machinery can be obtained only from abroad, this imposition of a substantial duty on machinery under £2,000 in value is very unfair to smaller firms and indirectly adversely affects their ability to compete in the export market? Surely the Government should encourage firms to acquire the most up-to-date modern plant and machinery and not to discourage them in this way.
§ Mr. ErrollThe purpose of the duty, of course, is to provide protection for British manufacturers of machinery. A limit is necessary because, if there were no limit, we would be overwhelmed with applications for relief.
§ Mr. HirstIs my right hon. Friend aware that it does not matter how much 1114 he is overwhelmed provided British industry is made efficient? That is the main consideration.
§ Mr. ErrollSome hon. Members complain about swollen bureaucracies. We have to watch that as well.
§ Mr. WadeIs not the right hon. Gentleman aware that this is machinery which can be obtained only from abroad? It is not procurable in this country.
§ Mr. ErrollI am aware of the point.