§ 41. Mr. Dodds-Parkerasked the Chancellor of the Exchequer whether he will take steps to exempt from Selective Employment Tax all those employed in regular duties covering sports facilities required for the Regional Sports Councils, as providing public benefit.
§ Mr. DiamondNo. Those sports organisations which are recognised as charitable already get refund of the tax.
§ 42. Mr. Maddanasked the Chancellor of the Exchequer on what authority there has been discrimination in Selective Employment Tax refunds in favour of local government councils who have been receiving their refunds one month after payment as opposed to the normal six months; what other bodies are receiving preferential treatment; and what is the economic criterion upon which this discrimination is made.
§ Mr. DiamondI would refer the hon. Member to the White Paper (Cmnd. 2986) explaining the objectives and framework of the tax.
§ 45. Mr. John Hallasked the Chancellor of the Exchequer if he will relieve 39W from Selective Employment Tax those service companies that are substantial earners of foreign exchange.
§ Mr. CallaghanI would refer the hon. Gentleman to my reply to my hon. and learned Friend the Member for Aberdeen, North (Mr. Hector Hughes) on 20th December.—[Vol. 738, c.248].
§ 47. Mr. John Hallasked the Chancellor of the Exchequer what estimate he has made of the gross cost to industry in the 12 months from 5th September, 1966, of interest at the current rate of 8 per cent. on Selective Employment Tax paid and later refunded to employers.
§ Mr. DiamondNo accurate estimate can be made because interest rates change. But the gross cost to private industry, if all firms had to borrow at 8 per cent., would be about £6 million, as compared with total refunds in the year of the order of £500 million.
§ 51. Mr. Wallasked the Chancellor of the Exchequer what is the average surcharge added to bills and accounts due to the imposition of Selective Employment Tax; and when this surcharge will become fully incorporated into the charge for services.
§ Mr. CallaghanEmployers are expected to absorb as much of the tax as possible: the amount which they find it necessary to pass on to the customers varies according to the nature of their business.
§ 53. Dr. John Dunwoodyasked the Chancellor of the Exchequer if he will now seek to amend the Selective Employment Tax to discriminate in favour of development areas.
§ Mr. CallaghanI would refer my hon. Friend to the Answer which I gave to my hon. Friend the Member for Houghton-le-Spring (Mr. Urwin) on 20th December, when I said that these matters are under review and that the Government is already giving considerable assistance to strengthen the development areas.—[Vol. 738, c.247–8.]
§ 55. Mr. Goodhartasked the Chancellor of the Exchequer what the estimated annual cost to the Exchequer would be of exempting all amateur sporting organi- 40W sations from Selective Employment Tax; and what the estimated annual cost would be of exempting all professional sporting organisation from Selective Employment Tax.
§ Mr. DiamondI cannot improve on the Answer given to the hon. Member by my hon. and learned Friend on 12th July, 1966.
§ 58. Dame Irene Wardasked the Chancellor of the Exchequer if he will state, to the nearest convenient date, how much has been collected from the Selective Employment Tax, the cost of repayment with appropriate premiums to be included in the present financial year, and the cost of the total operation.
§ Mr. CallaghanAs my right hon. Friend, the Minister of Social Security, said in reply to the hon. Member for Wycombe (Mr. John Hall) yesterday, receipts up to 1st January, 1967, were £320 million. Refund and premium payments to the private sector this financial year are estimated at about £200 million. The additional administrative cost of operating the tax is estimated at about £1½ million in a full year.—[Vol. 740, c. 30.]
§ 68. Mr. Hastingsasked the Chancellor of the Exchequer whether he will now relieve private schools from paying Selective Employment Tax.
§ Mr. DiamondPrivate schools once they are registered as charities, already qualify for refund.