HL Deb 28 July 1966 vol 276 cc900-2

2.10 p.m.

THE DUKE OF ATHOLL

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 they agree with what the Vice-Chairman of the Highlands and Islands Development Board is reported to have said in Inverness on May 4, namely that the selective employment tax is "a body-blow to these regions."]

THE JOINT PARLIAMENTARY UNDER-SECRETARY OF STATE FOR SCOTLAND (LORD HUGHES)

My Lords, I would repeat what I said to the noble Lord, Lord Tweedsmuir, in this House on July 13, that the Government do not accept that the selective employment tax has a damaging effect on the Highlands and Islands. It cannot therefore be a body-blow to these regions.

THE DUKE OF ATHOLL

My Lords, would the Government accept that the Highlands and Islands Development Board are doing a good job of work?

LORD HUGHES

My Lords, we not only accept that, but are very pleased with it, because that is the purpose of setting up the Board.

THE DUKE OF ATHOLL

My Lords, in that case, would the Government not agree that the people in the Highlands and Islands are more likely to know about their affairs than the people down here in Whitehall and, possibly, those in St. Andrew's Square?

LORD HUGHES

My Lords, it is not always so. The statement was made by the Deputy Chairman of the Board the day after the Budget. Since that statement was made, it has been made clear that there will be direct refunds of the tax for agricultural interests, for forestry interests and for fishery interests. These are a very important part of the economy of the Highlands. The Vice-Chairman of the Highlands and Islands Development Board did not know of these facts the day after the Budget. Incidentally, he did not claim to be speaking for the Board.

LORD WAKEFIELD OF KENDAL

My Lords, is it not further evidence of the wasteful and inefficient use of the selective employment tax that it is first of all to be collected and then paid back—meaning more and more civil servants?

LORD HUGHES

No, my Lords; on the contrary. The method adopted uses the existing machinery and enables the tax to be collected with the minimum number of civil servants.

LORD NEWTON

May I ask the noble Lord whether the last answer he gave to the noble Duke is a variant on the old theme of "the gentleman in Whitehall knows best"?

LORD HUGHES

My Lords, if the noble Lord chooses so to regard it I am not in a position to deny him that pleasure but there are occasions when the Chancellor of the Exchequer knows more about his Budget intentions than even the Vice-Chairman of the Highlands and Islands Development Board.

VISCOUNT MASSEREENE AND FERRARD

My Lords, is the noble Lord aware that the Highlands and Islands Development Board laid great emphasis on the tourist industry for the Highlands? That being so, can he explain why the selective employment tax is not a body-blow to the tourist industry?

LORD HUGHES

My Lords, the statement attributed to the Vice-Chairman was not that it would be a body-blow to tourism, but a "body-blow to these regions". That was a personal opinion of the Vice-Chairman. I would remind your Lordships that when these people were appointed we stated that we were not going out of our way to get "Yes-men". It does not follow that when these people are free to state their opinions, the Government must in turn become their "Yes-men". Having said that, I would point out that the purpose of the Highlands and Islands Development Board, who are developing their task so successfully, is to seek to create in the Highlands a balanced economy with such special measures as may be necessary for the Highlands within a United Kingdom framework. Therefore, in adopting these special measures they must seek to fit them within United Kingdom taxation, which includes the selective employment tax.