§ 10. Mr. Sutcliffeasked the Chancellor of the Exchequer if he will undertake to review the provision of the Customs and Excise Acts whereby tax on fuel oil used in power stations for the manufacture of chemicals is paid in full if 50 per cent. of the energy is used for refinery purposes and remitted in full if less than 50 per cent. is so used.
§ Mr. Maurice MacmillanWe are considering representations we have received on this matter but my hon. Friend will understand that I cannot comment further now.
§ Mr. SutcliffeDoes my right hon. Friend not think that the existing preponderance rule is inequitable and that the marginal change advocated by the Chemical Industries Association, supported by the British Plastics Federation, would be timely, in view of the present difficulties of the chemical industry, with investment not proceeding as planned and redundancies increasing in all major manufacturing centres, notably on Teesside?
§ Mr. MacmillanThe Question on the Order Paper has got the provisions the wrong way around. A power plant which is 50 per cent. or more used for petrochemical manufacture and oil refining is excused the duty on its fuel. A power plant otherwise used has to pay tax. I hope that that goes some way to meeting my hon. Friend's difficulties.