§ 40. Sir F. Bennettasked the Chancellor of the Exchequer to what precise extent the fixed-price contracts existing at the time of the introduction of the Selective Employment Payments Bill between Government Departments and local authorities on the one hand and private contractors on the other will be modified to meet the new tax.
§ Mr. DiamondI would refer the hon. Member to the statement I made to the House on 21st July during the Committee stage of the Selective Employment Payments Bill.
§ Sir F. BennettSince the right hon. Gentleman has very recently expressed pride in his own integrity, may I ask him to recall that when I put a Question recently, the Chancellor said that if I tabled a Question in this form he would give me a definitive answer? Therefore, would he kindly give some sort of estimate as to what proportion firms can expect to recover on fixed-price contracts as a result of the changes due to the Selective Employment Tax? Is it to be 100 per cent., 50 per cent. or 75 per cent.? Can we have a truthful answer?
§ Mr. DiamondIf the hon. Gentleman did not get so excited I could hear more accurately what information he is asking 1433 me for. If he is asking me what proportion this tax would represent, it represents 2 per cent. of the costs and therefore the refund which is proposed would cover all except something like one-quarter of 1 per cent. of the cost involved.