HC Deb 27 February 1968 vol 759 cc1209-11
17. Sir G. Nabarro

asked the Chancellor of the Exchequer whether his consultations with the Ministry of Agriculture, Fisheries and Food and the Commissioners of Inland Revenue are now completed in regard to taxation treatment of compensation paid for foot-and-mouth disease; and whether he will now give an assurance that all such compensation will be assessed free of liability to Income Tax, Surtax, Corporation Tax and capital gains duty.

32. Mr. Dance

asked the Chancellor of the Exchequer if he has yet reached a decision as to whether compensation paid to farmers who have suffered during the current outbreak of foot-and-mouth disease will be subject to tax or not.

Mr. Roy Jenkins

Not yet.

Sir G. Nabarro

Will the right hon. Gentleman bear in mind—sitting comfortably in Stechford, he may not understand—the extraordinary difficulties the farmers in Worcestershire afflicted by foot-and-mouth disease are having with their finances? As this is my third Parliamentary Question on this subject since December, will the right hon. Gentleman stop the practice of taking advantage of the misfortunes of these afflicted farmers?

Mr. Jenkins

I am not taking advantage at all. I am anxious that a statement shall be made, either by the Treasury or by my right hon. Friend the Minister of Agriculture, as soon as possible. The point at issue is that justice should be done to the farmers without doing it in such a way that it undermines the very principles on which the Inland Revenue has operated and must operate in future.

Mr. Scott-Hopkins

Does the Chancellor realise how important it is that this issue should be resolved as soon as possible? Is he aware that hardship is being caused to several farmers whose financial years have closed and whose farms suffered the disease in the early stages of the outbreak? Surely the right hon. Gentleman does not need to penalise farmers who, through no fault of their own, have had their stock destroyed and who wish to restart but do not want to suffer damage through taxation in the meantime?

Mr. Jenkins

I am aware of all these points. Negotiations are going on, and when negotiations are proceeding it is not usually one side or the other which is responsible for their speed.

Mr. Iain Macleod

Does the right hon. Gentleman's supplementary reply to my hon. Friend the Member for Worcestershire, South (Sir G. Nabarro) mean that he concedes the very important principle involved and is merely looking for ways to implement it?

Mr. Jenkins

No, Sir. While negotiations are proceeding, it would be wrong for me to say anything, or for the right hon. Gentleman to place any interpretation upon them which would not be justified by my remarks, which would prejudice those negotiations.

Sir G. Nabarro

On a point of order, Mr. Speaker. In view of the unsatisfactory nature of the reply, I beg to give notice that I shall seek to raise this matter on the Adjournment at the earliest opportunity.