HC Deb 19 October 1976 vol 917 c1385
Mr. David Mitchell

I beg to move Amendment No. 92, in page 36, line 17, at end insert: 'provided that such fees shall not in total, taking one year with another, be likely to exceed the costs to the Government of the Companies Registration Office'. I imagine that at last the Minister can accept one of our amendments. This is a simple amendment to prevent the Government from using the fees as a concealed form of taxation. It will give a small reassurance to the multitude of small companies which find the costs of registration an additional burden that they will not be more than the costs incurred in running the Companies Registration Office.

5.30 a.m.

Mr. Clinton Davis

The amendment is unnecessary and is in any event defective in its drafting. It would be unacceptable on those grounds. Under Clause 33 the Secretary of State may make regulations prescribing fees to be paid to the registrar in respect of the matter specified in subsection (1). I do not consider that the fees can be determined by reference to the costs incurred by the Department outside the Companies Registration Office.

The fees are paid to the registrar in respect of the specified matters, and that means that the size of the fee must bear a relationship to the work undertaken by the registrar.

Other benefits are conferred on companies by virtue of the surveillance exercised by the Department to endeavour to ensure that companies create for themselves a good atmosphere for investment and confidence. Surveillance is a very important foctor in that whole question of regulation, and the taxpayer has to pay for that.

The hon. Member may not feel that the inspections and surveillance are important, but that burden is borne by the taxpayer and not by companies.

Amendment negatived.

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