HC Deb 21 February 1949 vol 461 cc240-1W
Mr. Hoy

asked the Secretary of State for Foreign Affairs whether the provisions of the supplementary Protocol on Privileges and Immunities to the Convention for European Economic Co-operation concerning the exemption of the salaries and emoluments of employees of the Office of European Economic Cooperation from United Kingdom taxation are to be implemented in this country.

Mr. McNeil

Article 14 (b) of the Protocol on Privileges and Immunities provides that officials of the Organisation shall enjoy the same exemption from taxation in respect of salaries and emoluments paid to them as is enjoyed by officials of the principal international organisations and on the same conditions.

His Majesty's Government are anxious to make arrangements for implementation at the appropriate time of this provision of the Protocol which is of importance to those employees of the Secretariat who would otherwise be liable to United Kingdom taxation in respect of their salaries and emoluments.

The House, will, however, be aware that on 25th July, 1946, during the Debate on the Diplomatic Privileges Extension Bill, my right hon. Friend the Secretary of State for Commonwealth Relations (then Minister of State) gave an undertaking that no Order in Council would be made under the Bill then under discussion giving privileges or immunities not provided for in the 1944 Act, in favour of any new international organisation unless that organisation had been brought into relationship with the United Nations.

This pledge was given because of the very proper concern of Members lest the provisions of the Bill should give rise to an unjustifiable extension of exemption from United Kingdom taxation. Nevertheless, it was not contemplated at that time that there would be a European Recovery Programme or that a special international organisation for economic co-operation outside the framework of the United Nations would be needed. His Majesty's Government consider that in the circumstances now prevailing they are justified in extending to the Organisation for European Economic Co-operation the scope of the Privileges and Immunities granted by the 1946 Act in so far as they are applicable.