§ 33. Mr. Chichester-Clarkasked the Chancellor of the Exchequer what estimate he has formed of the effect on the employment of retirement pensioners of the Selective Employment Tax.
§ The Chief Secretary to the Treasury (Mr. John Diamond)There is little evidence so far that the tax is having any serious effect.
§ Mr. Chichester-ClarkWill the right hon. Gentleman bear in mind that unemployment undoubtedly arises in that category from the fact that it can cost 38s. 4d. a week to employ someone in it before one penny gets to the employee?
§ Mr. DiamondWe shall bear in mind what the hon. Gentleman says, but he will realise that it is impossible to separate the effects of the general economic circumstances and the tax where there is unemployment.
§ Mr. BarnettIs there any evidence that manufacturers are taking on pensioners and part-timers to obtain the benefit of the premium?
§ Mr. DiamondI have no such evidence.
§ 34. Mr. Chichester-Clarkasked the Chancellor of the Exchequer what estimate he has formed of the effect on the employment of the disabled of the selective employment tax.
§ Mr. DiamondWe are continuing to watch the effects of the tax on the disabled. There is little evidence so far of any adverse effects.
§ Mr. Chichester-ClarkIf the Minister will not throw out the tax altogether, which would be the best answer, will he bear in mind that 8.3 per cent. of the total number on the disabled register were unemployed at the end of the year, which is far too high a figure?
§ Mr. DiamondThe statistics are interesting and not wholly unsatisfactory. For example, they show that in the service and contracting industries, where unemployment has doubled, it has gone up by less than one-third among the disabled.