HC Deb 15 June 1966 vol 729 cc1430-1
6. Mr. MacArthur

asked the Secretary of State for Scotland what representations he has received about the effect of the proposed Selective Employment Tax on agriculture in Scotland; and what replies he has sent.

Mr. Ross

I have received various representations that the tax would impose an undue burden on agriculture. In reply it has been explained that the tax will be repaid direct to farmers and growers.

Mr. MacArthur

Does not the right hon. Gentleman recognise that farmers in Scotland are trying to cope with rising costs and falling returns? Does he not realise that many of them are heavily in debt? Does he seriously intend to add to their burdens this load of ever-increasing interest-free loan?

Mr. Ross

No. The hon. Gentleman is quite wrong in all his assumptions. He knows quite well that most of these factors are taken into account at the Price Review.

Mr. Stodart

Is not the right hon. Gentleman aware that it is not only the direct effect of farm workers paying tax which will be felt? Does he not realise that the vet's bill, the transport bill and the price of repairs to lorries will add an enormous amount to the costs of agriculture?

Mr. Ross

No one knows better than the hon. Gentleman that all those factors are assessed and taken into account when we decide at the Price Review what support will be given to agriculture.

Mr. Rankin

Is not my right hon. Friend aware that the hon. Gentleman referred to the tax on agriculture? Is it not the case that the tax is on the employers and not on the industry?

Mr. Ross

I think that we are all aware of the incidence of the tax. It applies to the individual who does the employing of people employed in agriculture.

Mr. Noble

Can the right hon. Gentleman explain to the House how if it was impossible to return the value of the tax to agriculture through the Price Review he is to return the value of the interest to the industry through the Review? These two things are not possible?

Mr. Ross

The right hon. Gentleman knows quite well that they are two different matters. When I met representatives of the industry I found that they were satisfied with the fact that we were making the repayment direct to the individuals who made the payment.