§ 20. Mr. Hall-Davisasked the President of the Board of Trade what studies he has made of the increase in invisible earnings to be achieved by the granting of selective employment tax rebate to the service industries which are direct earners of foreign currency.
§ Mr. MasonThis question will no doubt be considered by Professor Reddaway in his study of the effects of S.E.T.
§ Mr. Hall-DavisUntil such studies are completed is it not a fact that people in this country who are held down by higher taxes and higher prices as a result of devaluation should resent the Government casting away the advantages of devaluation by imposing a surcharge on invisible exports?
§ Mr. MasonI would remind the hon. Gentleman that we have not yet received any convincing evidence that S.E.T. is adversely affecting invisible exports.
§ Mr. MaudlingSurely S.E.T. has increased the costs of those earning invisible exports and this must make it more difficult. The Minister is too complacent. It is no good saying that these people are doing well despite it—they would do better if the tax was taken off.
§ Mr. MasonThe right hon. Gentleman will be well aware why we introduced it—the service industries seemed to be under-taxed compared with manufacturing industries. It has been imposed and in spite of that it—[interruption.]—does not seem to have adversely affected the performance of these industries.
§ Mr. SpeakerOrder. The amplification operator must see that we do not get these spontaneous interruptions. They are not interventions by hon. Members.