HC Deb 25 January 1962 vol 652 cc382-4
9. Mr. Farr

asked the Chancellor of the Exchequer if he will introduce legislation to establish a scheme whereby special taxation relief is allowed on all profits made on new export business above the current levels.

Mr. Barber

No, Sir. Such a scheme would be contrary to our international obligations.

Mr. Farr

Would not my hon. Friend agree that many exporters and manufacturing concerns feel that the time has come for a real incentive to be given in the export trade, particularly as exports involve much additional expenditure which is not normally incurred in the home trade?

Mr. Barber

I appreciate the purpose which my hon. Friend has in mind, but the policy of the Government has been over the years to work for the elimination of artificial aids to exports, and we have achieved a considerable measure of success. Many people agree that a reversal of that policy would be likely to lead to international competition in export incentives and I believe that in the end our exports would suffer and not gain.

Mr. Callaghan

What is the difference between having an artificial rate of interest, as was announced this week, and having a scheme such as this? Is the Economic Secretary telling us that it is impossible for the ingenuity of the Chancellor of the Exchequer or the Treasury to devise a scheme that would aid exporters and, at the same time, be in conformity with our international obligations?

Mr. Barber

The difference between what my right hon. and learned Friend announced on Tuesday and what my hon. Friend suggests in his Question today is that the one is consistent with our international obligations and the other is inconsistent with them.

Mr. Callaghan

Have another go.

Mr. Barber

The hon. Gentleman keeps on interrupting, "Have another go". It would be more helpful if he made positive suggestions of incentives to exporters which are within our international obligations.

Mr. Callaghan

Is not the Economic Secretary aware that I sent to the Chancellor of the Exchequer a scheme devised by the chairman of one of the leading steel companies which, in his view, satisfied both the requirements of the hon. Gentleman? Will he please reinvestigate it?

Mr. Barber

I will certainly look into it.

Sir H. Legge-Bourke

Concerning our international obligations, surely there is a clear distinction between subsidisation and tax concessions. It is subsidisation which is relevant to our international obligations and not tax assistance.

Mr. Barber

Obviously, I cannot at Question Time go into the provisions to which we have agreed, both under G.A.T.T. and also as a member of E.F.T.A. All I can say is that we have looked at ways and means of providing incentives for exporters and we shall continue to do so. I will certainly consider any suggestions which come from either side.

Mr. Mitchison

Will the Economic Secretary, among other things, look through the Opposition Amendments to the last half dozen or so Finance Bills, where suggestions of this sort will readily be found?