HL Deb 22 November 1961 vol 235 cc861-2
LORD BARNBY

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 whether, in view of the appeal for greater industrial efficiency, and to encourage round the clock machinery operation, they will forthwith announce appropriate increased statutory depreciation allowances equitably to balance the accelerated wear and tear.]

THE MINISTER WITHOUT PORTFOLIO (LORD MILLS)

My Lords, some rates of annual allowance for wear and tear of plant and machinery already take account of double shift or continuous working. But if a trader thinks that the rates are inadequate in his case to cover abnormal use, it is open to him, under Section 285 of the Income Tax Act, 1952, to apply to the Inland Revenue for an increase in those rates.

LORD BARNBY

My Lords, arising out of that reply, and while recognising that no one will be more familiar with the workings of this system than the noble Lord who has replied, may I ask him whether his attention has been drawn to the fact that, in recognition of the necessity to assist certain industries, particularly those that can operate round the clock, there has recently been recognition, both by the United States Administration and in the Canadian Budget, of the necessity of this principle of conceding supplementary allowances to compensate for what have now been recognised as hitherto inadequate statutory allowances?

LORD MILLS

My Lords, I quite understand the suggestion made by the noble Lord; but I suggest that the Income Tax Acts provide that any trader or association of traders can put forward reasons why their rates should be increased to take care of such circumstances. I think we have already got the right machinery to deal with it. If it is not being dealt with in any particular in the way intended and the noble Lord would let me have details of the cases, I will see they are brought to the attention of the Board of Inland Revenue.

LORD LATHAM

My Lords, would the noble Lord agree that the proper method is to shorten the estimated life of the machine if it works round the clock?

LORD MILLS

My Lords, I do not disagree with that contention, but it is capable of that kind of treatment within the existing legislation.

LORD BARNBY

My Lords, may I remind the noble Lord that these representations have been continually made by the Federation of British Industries, doubtless under this particular clause, and hitherto it has not succeeded in getting recognition by Her Majesty's Government of provisions apparently made in the regulations?

LORD MILLS

My Lords, the noble Lord may be aware that under another cap I have often taken part in such representations. Sometimes they do not succeed because they are too ambitious in their representations; sometimes they do succeed because they are obviously fair and reasonable.