§ 29. Mr. Emrys Hughes
asked the Chancellor of the Exchequer to what extent his appeal for continued restraint in profits and dividends in paragraph 14 of the White Paper, Incomes Policy: The Next Step, includes restraint on the part of individuals and others in the matter of capital gains and increases in share values arising from mergers and takeover bids.
§ Mr. Selwyn Lloyd
The White Paper deals with the question of restraint in 1115 the growth of all forms of incomes. The question of capital gains is a separate one. I have already expressed the intention to submit to the House proposals for taxing certain types of short-term gains now free of tax.
§ Mr. Hughes
Does that Answer mean that the Chancellor is keeping a very careful eye on what is happening in the affairs of Courtaulds and I.C.I.? Is he keeping an eye on this sort of activity as a possible source of revenue?
§ Mr. M. Foot
Since he has stated so carefully Mr. Khrushchev's policy, can the Chancellor tell us what Mr. Khruschchev does about capital gains?
§ Mr. Lloyd
What he said in his speech was this:If we raise wages and the wages funds are higher than the funds of goods, what happens then? You will have a lot of money, but you will not buy meat and milk in the shops, because the output of produce will fall still further behind the population's purchasing power. In such a situation the speculator is the only one to gain.
§ Mr. Callaghan
Is the Chancellor aware that he could galvanise this nation into a similar effort to that being made in the U.S.S.R. if there were fair dealing among all sections of the population? Does he not realise that it is precisely because there is this discrimination in favour of shareholders and against those who earn their living that he is dividing the nation and failing to get the response he wants?
§ Mr. H. Hynd
On a point of order. As you have frequently ruled that it is out of order to give quotations in supplementary questions, Mr. Speaker, are we to understand that it is in order to give quotations in supplementary answers?