HC Deb 15 May 1969 vol 783 cc1634-7
55. Mr. Higgins

asked the Chancellor of the Exchequer what consideration he has given to requesting Professor Reddaway to publish an interim report on the selective employment tax.

The Chief Secretary to the Treasury (Mr. John Diamond)

You said that you were grateful to the hon. Gentleman, Mr. Speaker. I congratulate him on his arrival. The answer to his Question is as follows:

My right hon. Friend has agreed with Professor Reddaway that a report will be published as soon as he is able to reach initial conclusions.

Mr. Higgins

Can the right hon. Gentleman tell us whether that will be before the debate on the S.E.T. on the Finance Bill, either in Committee or on Report?

Mr. Diamond

No, I am certain that that will not be so.

Mr. Cant

Could my right hon. Friend warn hon. Members opposite to be careful, since, although they welcomed the interim Reddaway Report on foreign investment, they were somewhat aghast when the Final Report was published, and it may be that they will not welcome what Professor Reddaway has to say about the S.E.T.?

Mr. Diamond

My right hon. Friend the Chancellor will study what Professor Reddaway has to say ultimately with great interest, and I am sure that it will be helpful to the whole House.

Mr. Costain

Is it not ironic that, if Professor Reddaway had reported on his study of the problem already, the Government would not have put up the S.E.T. by such a large amount?

Mr. Diamond

My right hon. Friend would have preferred the report to have been available, but it is an important inquiry and Professor Reddaway has to be given reasonable time to carry it out. My right hon. Friend could not wait till then.

Mr. Pavitt

When discussing the matter with Professor Reddaway, will my right hon. Friend bear in mind the total number of staff employed on this piece of research? Is he aware that it is very difficult to produce such a report quickly unless the staff is augmented?

Mr. Diamond

Completion of the report would be accelerated if the staff were augmented, but it is just not possible to find people of adequate ability and experience to assist.

Mr. Ridley

Will the Chief Secretary give an undertaking that if the Reddaway Report pronounces an unfavourable verdict upon the selective employment tax, he will rescind the increase announced by the Chancellor in his Budget Statement?

Mr. Diamond

The hon. Gentleman has asked a hypothetical and highly unlikely question.

Mr. Richard

When this valuable report on the selective employment tax comes to be published and when everybody has had opportunity to consider the, no doubt, very intelligent and valu- able recommendations of Professor Reddaway, will it be the Government's intention to allow the House of Commons an opportunity to debate the report, although, of course, we realise—as I am sure, my right hon. Friend does—that a debate is to take place on Tuesday—

Mr. Speaker

Order. Whatever the circumstances, supplementary questions ought to be reasonably brief.

Mr. Richard

I apologise, Mr. Speaker. I wished to know from my right hon. Friend whether we should have an opportunity to debate the report, despite the debate which is arranged for next Tuesday.

Mr. Diamond

As I have said, I regret that it will not be possible for the report to be available by then. The question of a debate on the report when it arrives is for my right hon. Friend the Leader of the House.

Mr. Edward M. Taylor

Will the report deal with the incidence of S.E.T. on particular projects? Is the right hon. Gentleman aware that the traders have come together in Glasgow to spend their fortunes on a new fruit market which would have brought great benefit to the city, but almost all the benefit has been wiped out in a single thud by the massive increase in S.E.T.?

Mr. Diamond

I was not aware of all the facts, but I am delighted to be informed by the hon. Gentleman that some of the citizens of Glasgow have clubbed together to form a fruit market.

Mr. Hooley

Is it within Professor Reddaway's terms of reference to consider the technicalities of the collection of this tax when the National Insurance stamp is abolished under the proposals for superannuation made by the Secretary of State for Social Services?

Mr. Diamond

I doubt that that will be his main consideration, but we shall see when the report is available.

Mr. Shinwell

As there are still two minutes before Questions to the Prime Minister are to be called, would my right hon. Friend explain what this report is all about?

Mr. Diamond

The S.E.T., which stands for selective employment tax.

Mr. William Hamilton

Will Professor Reddaway's report make specific reference to the effects of S.E.T. on the various regions within the United Kingdom or will it devote itself to references to specific industries rather than regions?

Mr. Diamond

It will not be primarily concerned with regions, since that question has been amply covered by the Hunt Report.

Mr. Hugh Jenkins

As the Chancellor of the Exchequer has abolished the S.E.T. throughout the film industry, will my right hon. Friend recommend him also to anticipate Professor Reddaway's report by accepting an Amendment to the Finance Bill to abolish it in the theatre?

Mr. Diamond

As I understand that we are to have a debate next week in which hon. Members may seek to catch the eye of the Chair to discuss the selective employment tax, I think that that will be the appropriate occasion for an Amendment.