HL Deb 11 November 1964 vol 261 cc325-7

3.38 p.m.

THE EARL OF SHANNON

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 recently announced 15 per cent. surcharge on imports, whether any consideration has been given to those firms who are engaged on bona fide long-term modernisation and improvement of their equipment and for whom it is either impractical of impossible to delay taking delivery during the "temporary" period of those portions of the equipment which of necessity have had to be ordered from suppliers abroad.]

THE PARLIAMENTARY SECRETARY, BOARD OF TRADE (LORD RHODES)

My Lords, the application of the charge to imported machinery generally is intended to put a brake on the rapid rise in such imports, by no means all of which can be regarded as immediately necessary. Where such machinery is really needed it is unlikely that the true cost of the new charge will be a significant burden on production costs, bearing in mind investment allowances and other tax provisions.

THE EARL OF SHANNON

My Lords, I should like to thank the noble Lord for his reply, but I find it difficult to consider it entirely satisfactory to those companies—and there are many of them—who have felt that their equipment was becoming a little out of date and, in order to keep their products more competitive in the world markets, have embarked on long-term planning and scheduling of new equipment, not all of which can be obtained in this country. They therefore have to purchase it from abroad. Many of these commitments have been entered into many years ago—

EARL ALEXANDER OF HILLSBOROUGH

Question!

THE EARL OF SHANNON

My Lords, I am sorry. I should like to preface my supplementary question with one or two remarks, if I may—

SEVERAL NOBLE LORDS: No.

THE EARL OF SHANNON

My Lords, do not the Government consider, in view of the stated objective of their Party and the fact that this charge is a brake on imports, and that much of this stuff is on the high seas, and also of the fact that the 15 per cent. can be recouped only by adding it to the cost of products produced for the world markets, that it will be most detrimental? Will they please reconsider it?

LORD RHODES

My Lords, I would point out to the noble Earl that many of these orders extend over a long period. It would be an extremely difficult and contentious concession to operate because of the disputes and appeals which would arise. I would also point out to the noble Earl that we were faced with a very urgent situation and had to introduce a scheme which would be reasonably simple to work, and to apply the surcharge widely to spread the burden.

LORD WAKEFIELD OF KENDAL

My Lords, can the Minister tell the House, please, what is going to be done about imports of materials which are required for house building? He will be aware that for the building of houses a certain amount of material, such as timber, has to be imported from overseas. Is he not aware that these import duties must raise the cost of the building of houses and must reduce the number of houses being built? What do the Government propose to do about this, in view of the intentions which were expressed at the time of the Election in regard to increasing the number of houses to be built, and the reduction of prices of those houses?

LORD RHODES

My Lords, we are aware of this situation, but I must emphasise again the temporary nature of this surcharge.

LORD DILHORNE

My Lords, does the noble Lord's reply to the noble Earl, Lord Shannon, mean that he recognises that the imposition of this levy will cause considerable injustice to those who placed their orders long before the levy was imposed? I understood him to mean that. Would he make it quite clear that he recognises there is injustice?

LORD RHODES

My Lords, no, I cannot agree to that. What I was trying to convey to the noble Earl was that the orders which had been placed a long time ago, as the noble Earl suggested, and goods for which may be on their way, could be treated no differently from any other.