§ 35. Mr. G. Campbellasked the President of the Board of Trade what is his estimate of the effect of the Selective Employment Tax on the catering industry and the hotel industry, respectively.
§ Mr. J. P. W. MallalieuIt has been estimated that, for the hotel industry, Selective Employment Tax represents about 2½per cent. of turnover; for the other catering industries, the figure is about 1 per cent. It is too early to assess the effects on these industries.
§ Mr. CampbellWhy have not the Government made a further investigation into its effects, as it is clear that the Selective Employment Tax has failed to do what the Government expected in moving jobs from service to manufacturing industries? Is it not time that they altogether reconsidered this ill-advised tax?
§ Mr. MallalieuAn investigation has just been completed by Cooper Brothers, and it will be published on 14th February.
§ Mr. Peter MillsWill the hon. Gentleman bear in mind that the Selective Employment Tax has had a real and harmful effect on the tourist industry in the South-West, and will he urge his right hon. Friends to do away with it as quickly as possible in the interests of the tourist industry?
§ Mr. MallalieuWe are prepared to do anything in the interests of the tourist industry, but I am not satisfied that the Selective Employment Tax has had an adverse effect.
§ Dr. John DunwoodyWill my hon. Friend assure the House that, as part of the examination of this whole problem to which he has referred, he will look at the special problems of the catering and hotel industries in development areas with high and persistent rates of unemployment?
§ Mr. MallalieuYes, Sir, most certainly.