HC Deb 21 June 1966 vol 730 cc274-5
24. Mr. Pavitt

asked the Minister of Power what is his estimate of the additional cost of distributing solid fuel arising from the proposed payroll tax.

Dr. Bray

Representations from some retail distributors suggest that if the tax is not absorbed by increased efficiency the additional cost may be in the range of 1s. 6d. to 3s. a ton. But the purpose of the tax is to encourage economies in the use of manpower in the distributive trades and I hope firms will absorb much of it.

Mr. Pavitt

In view of the need to contain prices if incomes are to be retained, will my hon. Friend look at the possibility of exempting coal distribution from the Selective Employment Tax?

Will he make representations to the Chancellor of the Exchequer to that end?

Dr. Bray

My hon. Friend knows that the examination of detailed cases is necessarily limited by the speed with which this tax has been introduced, but it would plainly be contrary to the purpose of the tax if exceptions were made in matters with which it is specifically intended to deal.

Sir G. Nabarro

Would the hon. Gentleman explain to the House why agriculture and horticulture should be given preferential treatment over coal and oil, when all of these things are basic to our national economy? Why will he not be a little more helpful to his hon. Friend on the Private Parliamentary Secretary Bench?

Dr. Bray

That sounds to me like a Question for the Minister of Agriculture and the Chancellor of the Exchequer.

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