HC Deb 29 May 1968 vol 765 cc1802-4
6. Mr. Costain

asked the President of the Board of Trade what new instructions he intends to issue following the recent decision of the High Court in the case of British Oxygen Company versus Board of Trade; and when he expects to be able to devise the booklet "Investment Grants", published by his Department in the light of the decision in that case.

Mr. Dell

I am considering with my legal advisers the question of an appeal against the decision of the High Court in this case.

Mr. Costain

Does the President of the Board of Trade realise that, since this decision, the lack of action is causing the investment grant system to get into even more disarray. When will he make up his mind about it?

Mr. Dell

That will depend on the upshot of any appeal, if we start one.

Mr. Barnett

While totally disagreeing with the remarks of the hon. Member for Folkestone and Hythe (Mr. Costain), and accepting that the investment grant scheme is better than the old investment allowance scheme, may I ask whether my hon. Friend will nevertheless consider holding meetings between Board of Trade officials and accountants who have to deal with the problems in practice, so that there can be some improvement in the workings of the scheme?

Mr. Dell

One of the objects of introducing the de minimis rule, which was fully announced when the investment grant scheme was under discussion, was to reduce administrative difficulties.

Mr. Patrick Jenkin

The hon. Gentleman must announce very soon whether this judgment is to be appealed against or not. Alternatively, he must begin to implement the scheme in accordance with the judgment. Will he make up his mind soon?

Mr. Dell

We will make up our mind soon whether we are to appeal, and obviously a decision will be taken in the light of that.

12. Mr. Ridley

asked the President of the Board of Trade what estimate he has made of the cost of abandoning the £25 minimum value rule for investment grants in a full year.

Mr. Dell

Information on which to make a reliable estimate is not available.

Mr. Ridley

Is the hon. Gentleman aware that he is not only acting illegally in this matter since the High Court judgment, but that it is open to very serious objection to exclude certain people just because their investments are small in total in units? Will he therefore reconsider this policy and say when he will be able to announce a decision?

Mr. Dell

It was made perfectly clear when the investment grant scheme was introduced that there would be a de minimis rule. Whether what we are doing is illegal will depend on the upshot of further proceedings in the courts.