HL Deb 15 February 1961 vol 228 cc807-9

2.55 p.m.

LORD FERRIER

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

[The Question was as follows:

To ask Her Majesty's Government, in view of the fact that storage type electric space heaters are not obtainable for domestic use (on account of a difficulty arising out of purchase tax), will they be pleased to state what steps, if any, they propose to take to render this type of heater generally available so that domestic consumers can take full advantage of off-peak tariffs.]

THE MINISTER WITHOUT PORTFOLIO (THE EARL OF DUNDEE)

My Lords, the manufacturers have not hitherto sold these heaters to domestic users because to do so would attract purchase tax at 25 per cent. on the whole of their sales. Consultations are proceeding with the manufacturers about the prospects of producing models which would appeal more specifically to domestic consumers, and with the Electricity Council about their plans for developing the off-peak use of electricity.

LORD FERRIER

My Lords, while thanking the noble Earl for his very helpful reply, may I inquire whether the parties concerned will remember the need for off-peak equipment, such as is required for greenhouses, poultry houses and other productive but non-industrial uses, in addition to equipment for space heating in purely residential premises?

THE EARL OF DUNDEE

My Lords, I think that is a very useful suggestion, which I will certainly pass on to those engaged in the consultations.

LORD STONHAM

My Lords, can the noble Earl explain why, if these heaters are sold for domestic uses, then necessarily those sold for present purposes, industrial and otherwise, will incur liability to purchase tax?

THE EARL OF DUNDEE

My Lords, they become liable to purchase tax if they are similar to a type of heater sold for domestic use. The manufacturers think that if they sold their present large appliances, which are intended for office and industrial use, to domestic users as well, not only what they sold to domestic users but all the others would then become liable to purchase tax. They also consider that the appliances they are now producing are not suitable for domestic purposes for the heating of individual rooms.

LORD STONHAM

My Lords, the noble Earl has explained what he had already made perfectly clear. My question is, if these heaters do not incur purchase tax now, why should they do so if similar heaters are sold to domestic users?

THE EARL OF DUNDEE

My Lords, I thought I had just explained that. The manufacturers are afraid that if they sell their present heaters for domestic purposes, all the heaters which they sell for industrial purposes will then be classed as heaters similar to those used for domestic purposes. Therefore, they do not want to risk becoming liable for purchase tax for the whole of their production.

THE DUKE OF ATHOLL

My Lords, is it the policy of the electricity authorities of this country to encourage the off-peak use of electricity? If that is so, as I believe it is, and this is allowed to continue, how can the average domestic consumer help the electricity authorities?

THE EARL OF DUNDEE

My Lords, it is the aim of the Electricity Authority to achieve a better balance between the load throughout the 24 hours. The reply to the second part of my noble friend's question is that that is the purpose of these consultations.