§ Sir K. FRASERasked the Chancellor of the Exchequer if lie is aware that the hosiery manufacturers in Leicestershire are quite unable to bear the heavy taxation which absorbs all liquid capital reserve, and thereby prevents renewals and installation of modern machinery; that hosiery machinery, being of a delicate and intricate nature, needs to be frequently replenished, and that unless taxation is reduced the position of the hosiery industry in Leicestershire will be seriously compromised and will not be able to compete successfully with foreign manufacturers; and does he propose to take any steps in the matter?
Mr. YOUNGMy hon. and gallant Friend may rest assured that the Government are giving careful attention to the incidence of taxation on industry. With regard to the second part of the question, I would remind my hon. and gallant Friend that, under the provisions of the Acts relating to Income Tax and Excess Profits Duty, deductions are admissible on account of wear and tear of plant and machinery and, in determining the basis on which such deductions are to be calculated in the case of a particular industry, regard is had to the conditions prevailing in that industry.