HC Deb 11 July 1966 vol 731 cc955-6
31. Mr. Longden

asked the Minister of Labour how waste paper processors and merchants are classified with reference to the Selective Employment Tax.

Mrs. Shirley Williams

In the Standard Industrial Classification waste paper merchants are classified to Heading 832.6 of Order XX. Makers of paper and paper board who process waste paper are classified to Heading 481 of Order XV.

Mr. Longden

Would not the hon. Lady agree that waste paper processors are not dealers or merchants but are processing raw material into a form which can be used in our own industry and can be exported? Is it not a pity that they should have been taxed?

Mrs. Williams

The difficulty is, as the hon. Gentleman will be aware, that the tax must be very clear in its classifications, and I think that it would be very difficult to admit waste paper processing to the manufacturing category. The S.I.C. does not do this. The work done by this industry is very useful from the point of view of the economy.

Mr. Fletcher-Cooke

It is not "manufacture" in any sense of the word to' take this raw material, process it and sell it? Would the hon. Lady receive favourably an Amendment to the Selective Employment Payments Bill to get this in the right category?

Mrs. Williams

The manufacturer of paper is so classified because he goes beyond simply processing waste paper. This is the distinction. But I am sure that it is open to the hon. and learned Gentleman to put down an Amendment to the Bill on this matter.