§
Motion made, and Question proposed,
That, for the purposes of any Act of the present Session to amend the law relating to employers and workers and to organisations of employers and organisations of workers, to provide for the establishment of a National Industrial Relations Court and for extending the jurisdiction of industrial tribunals, to provide for the appointment of a Chief Registrar of Trade Unions and Employers' Associations, and of assistant registrars, and for establishing a Commission on Industrial Relations as a statutory body, it is expedient to authorise—
§ 10.16 p.m.
§ The Under-Secretary of State for Employment (Mr. Dudley Smith)The Motion is necessary because the Bill has an effect on certain rights to exemption from income tax.
Under section 338 of the Income and Corporation Taxes Act, 1970, a registered trade union has a certain measure of exemption from tax in respect of income and chargeable gains applied for the purposes of provident benefit, and this will continue. But now the exemption will no longer apply to certain employers' associations which have hitherto been defined as trade unions but will now be separately defined. If it were decided to maintain the status quo and allow employers' associations to continue to enjoy the exemption, it would be necessary to extend the exemption by legislation to include employers' associations.
We do not think that many employers' associations are affected but if we find on inquiry that there are and there is some difficulty, I am sure that my right hon. Friends will be prepared to look at the matter. A large number of trade unions avail themselves of the exemption and will be able to continue to do so.
§ Question put and agreed to.