HC Deb 17 February 1971 vol 811 cc1836-7
47. Mr. Allason

asked the Secretary of State for the Environment whether he will give an estimate of the amount which the direct labour departments of local authorities engaged in new construction will have to pay in respect of the selective employment tax during the financial year 1970–1971, on the basis of the present rates of the tax; what is the equivalent figure in respect of maintenance workers, prior to the tax being refunded to local authorities; and what are the equivalent figures for private contractors.

Mr. Channon

I estimate that the figures for the directly employed labour of local authorities are £5 million and £17 million. The corresponding estimates for private contractors are £90 million and £40 million.

Mr. Allason

Do I understand my hon. Friend to say that there is a disparity between the treatment of private enterprise and that of public enterprise in this matter? If so, is he satisfied that it is fair?

Mr. Chanson

Of course I am not satisfied that it is fair. It is part of the ridiculous operation of this ludicrous tax.

Mr. Lipton

Is the hon. Gentleman doing anything about helping the backward areas and gingering them up to carry out their housing responsibilities?

Mr. Channon

I am not sure what that has to do with the Question. The Question is about selective employment tax, which we on this side of the House are pledged to abolish.