HC Deb 18 May 1971 vol 817 cc1068-9
22. Mr. Farr

asked the Chancellor of the Exchequer if he will review the position relating to the payment of corporation tax by bus operators.

Mr. Patrick Jenkin

I am not aware of any need for a general review. But if my hon. Friend has a specific point in mind, I shall be glad to look into it.

Mr. Farr

Is my hon. Friend aware that, unlike normal bus undertakings, municipal bus undertakings are not liable for corporation tax? The passengers of the Midland Red Bus Co., which is a nationalised concern, have to foot a bill for corporation tax this year amounting to more than £500,000. I ask my right hon. Friend to look again at this situation, which imposes a burden on fare-paying passengers outside corporation bus districts.

Mr. Jenkin

When the Passenger Transport Authorities were set up, it was decided that they should inherit the municipal bus companies' pre-transfer losses. I will take note of what my hon. Friend said, although questions about bus subsidies generally are for my right hon. Friend the Minister for Transport Industries.

Sir R. Cary

Has not the National Bus Company made representations about this matter, and is it not under consideration at the moment?

Mr. Jenkin

I am not aware that that company has made representations to the Inland Revenue, but it may well have made them to my right hon. Friend the Minister for Transport Industries.