HC Deb 19 February 1968 vol 759 cc17-8
23. Mr. Mawby

asked the Minister of Labour what was the cost to his Department of the administration of Selective Employment Tax and repayments during 1967.

Mr. Hattersley

The estimated cost to the Ministry of making payments of premiums and refunds of Selective Employment Tax in 1967 was about£370,000.

Mr. Mawby

Is the Joint Parliamentary Secretary at least now satisfied that this is the most expensive and wasteful method of collecting taxes that has ever been devised?

Mr. Hattersley

I am satisfied that the Selective Employment Tax is doing the job for which it is intended very well indeed.

26. Mr. Farr

asked the Minister of Labour what he expects to be the cost to his Department of the administration of Selective Employment Tax and repayments during 1968.

Mr. Hattersley

I estimate that the cost to the Ministry of making payments of premiums and refunds of Selective Employment Tax in 1968 will be about£495,000.

Mr. Farr

I am grateful to know that the cost will be about£80,000 less than that for 1967, but is not this a very high cost of administration?

Mr. Hattersley

I am sorry that I did not make it clear to the House on the previous Question that I regard the Selective Employment Tax, and certainly the cost of its administration, as money well spent.

Mr. R. Carr

The Joint Parliamentary Secretary keeps on saying that he has evidence that this Tax is achieving its designed purpose. Why, then, has the purpose been changed by removing the premium?

Mr. Hattersley

If the right hon. Gentleman rereads the statement made by my right hon. Friend the then Chancellor of the Exchequer some weeks ago, he will see that one of the reasons why the selective employment premium was removed was, not that it was being a failure, but that it was being too successful.

Miss Quennell

Where has the margin of saving of about£80,000 over 1967 occurred?

Mr. Hattersley

By transferring the collection to a computer.