§ 35. Mr. Danceasked the Chancellor of the Exchequer if he will amend subsection 6(a,i) of Section 7 of the Finance (No. 2) Act, 1964, so that companies in this country which export goods to companies abroad can qualify for the export rebate even where those overseas companies are incorporated in the United Kingdom.
§ Mr. MacDermotNo, Sir. I am not convinced that this would benefit export trade as a whole.
§ Mr. DanceIs the hon. and learned Gentleman aware that in my constituency there is a car component manufacturing company which exports a large proportion of its products to car manufacturers and gets this rebate from all countries except one because the company from that country has set up a registered office here in this country? Is not this entirely wrong, and should not it get this rebate because it is doing a lot to further exports?
§ Mr. MacDermotI cannot discuss particular instances on the Floor of the House. I do not accept that the distinction is wrong. This matter was debated at the time of the relevant Finance Bill. What is needed above all is certainty in this matter, and that is provided by the place of incorporation. Residence does not provide it.