HL Deb 09 July 1957 vol 204 cc815-7
LORD CONESFORD

My Lords, I beg to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government, whether their attention has been called to an advertisement in the Folkestone, Hythe and District Herald in which Peter Dominic Ltd. commend their beer in cans as follows:—"So handy! No empties to return, just chuck them over the hedge …"; whether Peter Dominic Ltd. or the newspaper has prima facie thereby committed any breach of the existing law; whether expenditure on an advertisement that incites persons to scatter litter will be allowed as a trade expense in the computation of tax liability; and what steps Her Majesty's Government intend to take to punish such disreputable propaganda and to protect the countryside.]

LORD MANCROFT

My Lords, the phrase So handy! No empties to return, just chuck them over the hedge …", to which my noble friend takes exception in his Question, occurs in the course of advertising material which the firm concerned intended to be of a facetious character. Unfortunately some people, including, obviously, my noble friend Lord Conesford, have interpreted this facetious wording as an incitement to increase the spread of litter. The newspaper that printed the advertisement and the firm concerned had no such intention and regret that such an interpretation should have been put upon the passage from which the noble Lord quotes. They are in fact strong supporters of the anti-litter campaign and they have informed me that they do not intend to use this material in future. I think in this case my noble friend may feel that the rest of his Question no longer applies.

LORD CONESFORD

On the contrary, my Lords, I feel that every bit of it applies very strongly. While thanking my noble friend for explaining that the company was trying to be funny, may I ask him specifically what the answer is to that part of my Question which inquires whether expenditure on this advertisement will be allowed as a trade expense in the computation of the company's liability for tax? Does my noble friend not think that it would be rather odd if various public bodies are paying for advertisements advising people not to scatter litter and a company that issues an advertisement inciting them to scatter litter is allowed thereby to reduce its tax liability?

LORD MANCROFT

My Lords, the test is not the wisdom or otherwise of advertising expenditure incurred by a trader, and that outlay on advertising, which is of a revenue nature, comes in general within the ordinary rule that allowance is made, in computing taxable profits, for expenditure wholly or exclusively laid out for the purposes of the trade. I recognise the validity of my noble friend's point about subsidising by this form of tax rebate one's rival's interests. The point occurred a little while ago in the campaign in which "Mr. Cube" was engaged. In that case "Mr. Cube" neither apologised nor withdrew.

LORD CONESFORD

My Lords, if my noble friend cannot give any assurance that the expenditure on this advertising will not be allowed to diminish the company's tax liability, is he now convinced that there is an urgent necessity for legislation to deal with litter?

LORD MANCROFT

My Lords, I am convinced that my noble friend thinks so.

VISCOUNT ALEXANDER OF HILLSBOROUGH

My Lords, would not the local authority in the area in which the advertisement appears have power to proceed, as the advertisements tend to encourage local people to break their bylaws?

LORD MANCROFT

My Lords, I have taken legal advice upon that point, and my advice is that it would be a borderline case and probably not easy to win.

LORD REA

My Lords, may I take it that the borderline would be the hedge, and it rather depends what is on the far side of the hedge?

LORD CONESFORD

My Lords, if the company is genuine in its desire to prevent the scattering of litter, could it possibly devote the profits that it expects to derive from this advertisement to one of the societies endeavouring to combat litter?

LORD MANCROFT

My Lords, I will see that the noble Lord's request reaches the company.