§ 31. Mr. Nabarroasked the Chancellor of the Exchequer what would be the annual cost to the Revenue of accelerating by three times the current rate of depreciation for tax purposes on plant, equipment, vehicles and buildings if granted to firms exporting more than 25 per cent. ad valorem of their output of finished goods; and if he will estimate the effect of such an exports' incentive to British firms upon United Kingdom trade under existing international agreements.
§ Mr. Selwyn LloydI regret that there is not enough information on which to base an estimate either of the cost of the suggested concession or of its effect on exports.
§ Mr. NabarroDoes my right hon. and learned Friend recall that last Tuesday he undertook to examine this matter when he kindly gave way to me in the middle of his speech? Since then has it not come to light that examination of 186 the balance sheet of any French major industrial undertaking will reveal that the present French Government are giving this direct export incentive to manufacturers in the form of an accelerated depreciation allowance? If the French can do it within international agreements to which we are also party, why cannot we do it?
§ Mr. LloydFollowing upon my hon. Friend's helpful intervention the other day, I made inquiries into this matter and I understand that for some reason or another the French are shortly to abandon this system. Whether this is because of its complications or for other reasons I have not yet been able to find out.