HC Deb 11 July 1974 vol 876 cc1534-5
8. Mr. Kinnock

asked the Chancellor of the Exchequer what estimate he has made of the effects of wealth tax on the sale of works of art currently in Great Britain.

Mr. Joel Barnett

This will be a matter for later discussion in the light of the Green Paper.

Mr. Kinnock

I am grateful that my hon. Friend is thinking seriously about this. Is he aware that many people find the prices now being paid for works of art to be offensively high, as the wealthy in our society, instead of using their money for investments which would bring general public good, are using it more as a hedge against inflation? Is he aware that there is equally widespread feeling that it would be a grand thing, via a wealth tax, for the public at large to have the benefit of taking the cream off the preposterous prices now paid for works of art?

Mr. Barnett

I note what my hon. Friend says. His remarks will be amongst those matters for discussion when the Green Paper is issued.

Mr. Money

Will the hon. Gentleman confirm that he has received representations expressing the strongest possible misgivings on this subject from the Standing Commission on Museums and Galleries and from the National Art Collections Fund? Is he aware that a tax control such as the hon. Member for Bedwellty (Mr. Kinnock) has suggested would open the floodgates to potential foreign buyers of our national heritage? Will he bear in mind that valuations of works of art for such a tax would be not only unfair but impossible?

Mr. Barnett

I do not know how the hon. Gentleman or anyone else can say that, when they have not seen the Green Paper. The hon. Gentleman and others may see the matter differently after they have seen the Green Paper.

Mr. Richard Wainwright

Is the hon. Gentleman aware that in past generations this country and France have done enormously well out of their free world market in art, and that any attempt to clog the market now would be highly protectionist and selfish towards the rest of the world.

Mr. Barnett

It is becoming clear that when the Green Paper is issued the discussion will be very interesting.