§ 21. Mr. Alasdair Mackenzieasked the Chancellor of the Exchequer if he will make a statement as to the cost of administering the Selective Employment Tax as it affects agriculture and other industries entitled to a refund.
§ Mr. MacDermotThe cost of administering refunds to the private sector is about £375,000 in a full year, and about a third of this is for refunds to agriculture. The cost of collection cannot be separately identified.
§ Mr. MackenzieDoes the Financial Secretary recognise that this imposition 1245 is a waste of time and money? Would not he agree that it would be better to abolish this tax entirely, certainly for those industries which are given the refund?
§ Mr. MacDermotAs I said in answer to a previous Question, it is not a waste of time and money. This tax, including the cost of paying the refunds, is an unusually cheap tax to administer.
§ 32. Mr. Deanasked the Chancellor of the Exchequer whether he will announce the results of the studies he has made of the effects of the Selective Employment Tax on those parts of the country with the smallest proportion of employees engaged in manufacturing industry.
§ Mr. CallaghanI cannot anticipate my Budget statement.
§ Mr. DeanDoes the right hon. Gentleman realise from the figures he has already given that those parts of the country least able to pay are bearing the biggest burden? Will he give an assurance that he will put this right at an early date?
§ Mr. CallaghanThe hon. Gentleman will understand from my original reply that I can give him no assurance, and that he can draw no deductions from my original Answer.