§ 21. Mr. Wolrige-Gordonasked the Secretary of State for Scotland what representations he has received from the Scottish Tourist Board following the 50 per cent. increase in the Selective Employment Tax; and what reply he has sent.
§ Dr. Dickson MabonNone, Sir.
§ Mr. Wolrige-GordonIs the Minister aware that one reason must be because they are still recovering their breath after the latest example of Government ineptitude? Is it a fact that, in spite of the exemptions in the Finance Bill, the Scottish tourist industry as a whole will have to pay more in Selective Employment Tax than it did last year?
§ Dr. MabonI suggest that the hon. Gentleman should give the Scottish Tourist Board a little more credit. After all, it is examining the interesting proposal announced by the Chancellor of the Exchequer for inclusion in the Finance Bill, namely, that in certain parts of development areas there will be a refund of Selective Employment Tax to hotels. This will be debated in the Bill. At that stage the hon. Gentleman may be able to get a quantified answer to the second part of his question. He will also note that the effective rate of Selective Employment Tax on part-time employees is to remain as it is and that this rate is to be extended to all employees over the age of 65. I hope that the tourist trade appreciates these concessions also.
§ Mr. EadieCan my hon. Friend confirm reports in the Press that the Scottish Tourist Board has said that this year it will have the biggest boom ever?
§ Dr. MabonI am told that it had a good year in 1967 and expects to have a very good year this year. In fact, the industry is short of labour and is recruiting very fast. This tax does not seem to be a disincentive.
§ Mr. G. CampbellWill the Minister of State now institute an inquiry into the effects of Selective Employment Tax in areas outwith the industrial belt? 1358 Otherwise the Government's limited action will continue to be too late.
§ Dr. MabonThe hon. Gentleman must know that the Chancellor announced that Mr. Reddaway of Cambridge University would conduct a very searching inquiry into the effects of the tax. We hope that his report will be published this year or early next year. The important point is that if the industry, or any part if it, feels that S.E.T. is a particular offence and not a fair burden to be imposed on it—and all have to accept burdens—it should make its case to Mr. Reddaway when he is making his inquiry.
§ 22. Mr. Wolrige-Gordonasked the Secretary of State for Scotland what representations he has received from the Highland Development Board about the 50 per cent. increase in the Selective Employment Tax and what reply he has sent.
§ Mr. Wolrige-GordonIs the right hon. Gentleman aware that presumably the same reason applies as to my earlier Question? What further addition of capital would the Highland Development Board have to invest in the Highlands to meet that now being withdrawn from the Highlands by this increase in Selective Employment Tax?
§ 29. Mr. Eadieasked the Secretary of State for Scotland what representations he has received about the effect of the increases in Selective Employment Tax in Scotland as announced in the recent Budget statement; and what reply he has sent.
§ Mr. EadieCan my right hon. Friend give the House any idea of the redistribution effects of the S.E.T. between manufacturing and distribution?
Mr. Edward M. TaylorAs the right hon. Gentleman sat in on, agreed to, and approved a Budget which brought about an increase in the S.E.T., and in petrol and vehicle licences, all of which 1359 discriminate against Scotland, does not he agree that the reason why he has not received any letters is that people do not think it worth writing to him?
§ Mr. RossIt is obvious that the hon. Gentleman did not listen to the Chancellor of the Exchequer when he spoke about the S.E.T. and the benefits which accrued to Scotland with the changes that were announced.