§ 4. Sir Anthony GrantTo ask the Chancellor of the Exchequer if he will introduce tax incentives to encourage the installation of security devices in motor vehicles; and if he will make a statement.
§ Mr. DorrellWe have no plans to introduce such tax incentives.
§ Sir Anthony GrantAs car crime is the fastest rising crime of all, is it not absurd that, for tax purposes, security systems should be treated on the same basis as stereos, cassettes and suchlike frippery? If my hon. Friend cannot change the tax system, could he perhaps try some other methods to help—for example, through insurance?
§ Mr. DorrellIf I may say so, my hon. Friend is on a better point when he suggests that the insurance industry should take account of the presence of proper security measures in cars. I understand that the industry is increasingly doing that. That is a proper incentive for people to do what is their responsibility and to ensure that their property is secure.
§ Mrs. Anne CampbellDoes the Financial Secretary agree that the Budget proposal that puts a value added tax on insurance will put a further burden on motorists, who are already burdened by rising crime?
§ Mr. DorrellIt is not a value added tax on insurance but an insurance premium tax which reflects the tax regimes that prevail widely elsewhere in the world. Given the Government's need to raise revenue in the Budget in November, it seems to be a very fair way of carrying out that objective.