§ 20. Mr. Biffenasked the Chancellor of the Exchequer what proposals he has to promote the free movement of capital 200 and revise Corporation Tax, in order to facilitate the development of European-based companies able to compete on an international scale in advanced technologies.
§ Mr. Roy JenkinsNone, Sir. But the subject of technological co-operation will play an important part in the consultations we are now to have with our colleagues in Europe.
§ Mr. BiffenNone the less, would the Chancellor take this opportunity of affirming that it is a first priority of the Government, as indicated in the Letter of Intent, that as soon as the balance of payments shows a definite improvement policy will be taken to promote greater freedom of movement of capital?
§ Mr. JenkinsThis is a wider question than the one the hon. Member originally asked. I am most anxious to encourage technological co-operation. There is no evidence that this is being held back by lack of freedom of movement of capital at present. The position remains as stated in the Letter of Intent, although I am not quite sure that the hon. Member stated it precisely.
§ Mr. Patrick JenkinThe question also refers to Corporation Tax. The Chancellor will note that our system differs radically from that around which the Europeans will harmonise. What are his proposals to revise our system of Corporation Tax to harmonise with theirs?
§ Mr. Roy JenkinsThe hon. Member can hardly think that I am going to tell him that now.