§ 38. Mr. Hawkins
asked the Minister of Agriculture, Fisheries and Food if he will fully recoup the agricultural industry for the increased costs of £2 million in a full year caused by the increased licence fees and the ending of initial allowances on motor cars.
§ Mr. Peart
If the Amendments to the Finance Bill, of which my right hon. Friend the Chancellor of the Exchequer gave notice on 25th June and which stand on today's Order Paper, commend themselves to the House, the cost to farmers of the increase in vehicle duties will amount to about £1.6 million in a full year. The cost will be taken into account, along with all other relevant factors, at next year's Annual Review. The withdrawal of initial allowances on motor cars concerns the amount of income that is taxable and does not affect production costs.