§ 15. Mr. Manuelasked the Secretary of State for Scotland what is the average rates subsidy paid per house tenant per year consequent upon the present derating provisions.
§ Dr. Dickson MabonI assume that my hon. Friend refers to industrial de- 592 rating. If industry in Scotland were not derated, the average householder would have paid about £3 13s. less in rates in the year1964–65.
§ Mr. ManuelIs my hon. Friend aware that many highly successful business enterprises are paying less than their fair share of rates at the expense of lower-paid ratepayers in the poorer section of ratepayers who, before they can get relief for rates, have to prove poverty? Could not the same rule apply to businesses?
§ Dr. MabonWithout derating, the rates on a factory in Scotland would be about 50 per cent. more than on a similar factory in England or Wales. Derating comes to an end in 1966 unless my right hon. Friend makes provision to continue it. He could not make such an order unless he first say an estimate that changes in rateable values for all types of property were such as to justify it. When he gets the report of the revaluation in 1966, perhaps he will take the point.
§ Mr. NobleWill the hon. Gentleman confirm that, in his thinking ahead for the future, he realises that unless we are able to offer competitive terms to industry houses will not be built in any case?
Mr. Edward M. TaylorDoes the hon. Gentleman agree that if derating is abolished in 1966 without any adjustment it could have a crippling effect on heavy industry and shipyards in particular? Is he aware that several heavy industries in Scotland have taken out comparisons which show even on the present basis that the rating burden is about the same as that on competitors in England, and in some cases more.
§ Dr. MabonIndustry is not slow—and quite rightly—in making representations to my right hon. Friend on this matter, and I hope it will continue to do so on certain points. We have certainly not a closed mind on the matter.