§ 46. Mr. Gordon Campbellasked the Secretary of State for Scotland what representations he has received about the effects in Scotland of the proposed increase in selective employment tax; and what reply he has sent.
The Minister of State, Scottish Office (Dr. J. Dickson Mahon)Two such representations have been received. The replies drew attention to the wide range of inducements available under the Government's regional policies and emphasised the desirability of supporting the development of the Scottish economy in this way rather than by shielding it from general taxation.
§ Mr. CampbellDoes not the sparsity of representations show that the many people in Scotland whose interests are seriously damaged by this obnoxious tax have lost any confidence that the Secretary of State can any longer do anything about it? Does the Secretary of State for Scotland consider that this tax is good for the Highlands and Islands?
§ Dr. MabonNo, Sir; it does not show that. The representations, which were confined to the Perth branch of the Communist Party and the Dundee Chamber of Commerce, show what bad company the hon. Gentleman is keeping.
§ Mr. William HamiltonWhat is the net gain to Scotland, taking into account the S.E.T. and the regional employment premium?
§ Dr. MabonThe net yield of the tax itself—that is, at the rates to be applied from 7th July—will be about £57 million a year, as against the £10 million in S.E.T. additional payments to manufacturers and regional employment premium payments of £39 million, which place Scotland in a more favourable position than Great Britain as a whole.
§ Mr. MaudlingMy hon. Friend the Member for Moray and Nairn (Mr. Gordon Campbell) asked the Minister about the position qua the Highlands and Islands. The Minister did not answer that. Will he now answer it?
§ Dr. MabonIf the hon. Gentleman will be kind enough to table a Question, I will certainly give him the up-to-date figures.