§ LORD CLIFFORD OF CHUDLEIGHMy 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 have considered the effect of the betterment levy on the future supplies of minerals and especially of sand and stone.]
§ THE PARLIAMENTARY SECRETARY, MINISTRY OF HOUSING AND LOCAL GOVERNMENT (LORD KENNET)Yes, my Lords, and under powers provided in the Finance Act 1968 regulations are being drafted in consultation with the interests concerned. These will enable owners of mineral-bearing land, including sand and stone, to choose whether to pay the betterment levy as a lump sum or as a percentage of the royalty which they receive from the working of the minerals. Levy paid in the latter way will be treated as a management expense for purposes of income tax.
§ LORD CLIFFORD OF CHUDLEIGHMy Lords, I thank the noble Lord for his Answer. I wonder whether he could answer this question. Can he, first of all, give a firm date when these regulations will come into operation (I think I am right in saying that negotiations took place a year ago) and can he assure the House that the deferred levy payment calculated on royalties will not be proceeded with should the mining operation cease prematurely?
§ LORD KENNETMy Lords, I regret that I am not in a position to give the precise date for the coming into effect 670 of the regulations. There will be no undue delay. I must confess that the complication of the second part of the noble Lord's supplementary question defeats me without notice. I would ask him to allow me to write to him about it later.
§ LORD CLIFFORD OF CHUDLEIGHMy Lords, I thank the noble Lord very much and I should like him to write to me on the subject. May I ask a further supplementary question? Would he not agree that on the acquisition of mining rights at the present time owners obviously have in mind, when deciding the royalty rate, the incidence of the betterment levy, and that inevitably the end result must be cost inflation? Would it not be better to abolish the levy altogether?
§ LORD KENNETNO, my Lords, I would not go so far as to accept that.