HC Deb 02 April 1968 vol 762 cc52-3W
47. Sir J. Gilmour

asked the Chancellor of the Exchequer whether he will list all the Government Departments who handle the payments, repayments and exemptions in connection with the Selective Employment Tax; and what is his estimate of the number of workers so employed.

Mr. Diamond

Ministry of Labour 375
Ministry of Social Security 229
Ministry of Agriculture, Fisheries and Food 80
Department of Agriculture and Fisheries for Scotland 16
Ministry of Housing and Local Government The equivalent of 6 full-time staff
Ministry of Power
Scottish Home and Health Department
Welsh Office
Treasury
TOTAL 706

55. Mr. W. T. Williams

asked the Chancellor of the Exchequer when Mr. Reddaway was asked to undertake an inquiry regarding Selective Employment Tax; and when it is anticipated he will report on his findings.

Mr. Diamond

Mr. Reddaway was invited to undertake the inquiry at the end of last year. It is too early to say when it will be completed, but I expect it to be during the course of next year.

56. Mr. Pavitt

asked the Chancellor of the Exchequer from whom Mr. Reddaway has been invited to obtain information in his inquiry into Selective Employment Tax; whether it is proposed to invite organisations affected by the tax to submit evidence; and to whom such evidence should be sent.

57. Mr. W. T. Williams

asked the Chancellor of the Exchequer what instructions he has given to Mr. Reddaway relating to the scope and conduct of his inquiry into Selective Employment Tax; and whether it is proposed that he should hold public and private hearings or otherwise invite written or oral evidence.

Mr. Diamond

The terms of reference of the inquiry areTo examine and report on the effects of the selective employment tax on prices, margins, and productivity in industries on which the tax falls as a net burden, and the consequent effects on the economy generally.

It will be for Mr. Reddaway himself to determine how he conducts the inquiry. Evidence should be submitted to the Department of Applied Economics of the University of Cambridge.

Mr. Elysian Morgan

asked the Chancellor of the Exchequer if he will take steps to exempt from the payment of Selective Employment Tax those areas where employees in manufacturing industry constitute less than a third of the number of employees engaged in service industries.

Mr. Diamond

I am not prepared to make such a general exemption. My proposal to refund the tax in full to hotels in certain rural parts of development areas will help most of these areas where employment opportunities in manufacturing industry are low.