HC Deb 03 May 1966 vol 727 cc1412-3
29. Mr. Turton

asked the Chancellor of the Exchequer whether it was with his authority that Professor Kaldor stated to the Economic Research Council that cash earmarked by close companies for expansion will not be taxed under the provisions of the Finance Act, 1965.

The Chancellor of the Exchequer (Mr. James Callaghan)

Yes, Sir.

Mr. Turton

I appreciate the tenor of the remarks of his special adviser, but will the Chancellor consider whether this statement should have been made earlier by himself?

Mr. Callaghan

The statement was made on 21st June, 1965, during the debates on the Finance Bill.

Mr. Patrick Jenkin

Would the right hon. Gentleman accept that the statement made by Professor Kaldor in answer to a question by myself at the meeting mentioned represented no change whatever from the doctrines propounded by the Government Front Bench during the Finance Bill debates and sounded every bit as unpalatable when propounded by the professor as by the right hon. Gentleman?

Mr. Callaghan

I am much obliged to the hon. Gentleman for confirming what I said. The only thing which I regret about this is that Professor Kaldor, one of the most distinguished economists we have in this country, was invited to address this learned organisation on the basis of complete confidentiality in the discussions and I very much regret that that was broken.