HC Deb 22 June 1965 vol 714 cc1446-7
10. Mr. Sheldon

asked the Chancellor of the Exchequer if he will introduce legislation to replace investment allowances by discriminatory investment grants.

Mr. Callaghan

My hon. Friend's suggestion will be considered in the current review of investment allowances announced in my Budget speech.

Mr. Sheldon

Is the Chancellor of the Exchequer aware that the relationship between investment and investment allowances is at best a most haphazard one? Will he tell us when he expects the revision to be complete and whether that will include investment grants or allowances which will be more discriminating in their effect, more widely understood and more immediate in their application?

Mr. Callaghan

I was very impressed by my hon. Friend's speech on Tuesday on Clause 52 of the Finance Bill. I accept what he said then and repeat it now. We are getting on with the review and we will take all considerations into account in seeing whether we can proceed with a new system.

Mr. Gresham Cooke

How is the discussion with the Minister of Technology getting on following the review of the machine tool industry? If we are likely to have the setback referred to in Question No. 11, in the name of my hon. Friend the Member for Louth (Sir C. Osborne), is not it important to get the new capital allowances in being by October if possible?

Mr. Callaghan

My relations with my right hon. Friend the Minister of Technology are, as always, cordial and I assure the hon. Member that we are working in full co-operation on this matter.

Mr. Higgins

Does the Chancellor agree with the statement made by the Chief Secretary that the effect of Corporation Tax will be approximately to double the incentive for firms to invest in development districts?

Mr. Callaghan

I never find it necessary to disagree with my right hon. Friend.