§ Mr. FIELDasked the Secretary to the Treasury whether it is intended, under Clause 1 of the Development and Road Improvement Funds Bill, to authorise advances to co-operative societies registered under the Industrial and Provident Acts; whether he is aware that those co-operative societies trade for profit, which is returned to shareholders and customers by way of dividend; and whether co-operative societies are liable to pay Income Tax?
§ Mr. HOBHOUSEIn answer to the first part of the question, I may call the hon. Member's attention to the Amendment moved on behalf of the Government on the 7th instant, by which the words "organisation of" have been inserted before "cooperation" in Clause 1 (1) (a) of the Bill. I am aware that all societies registered under the Industrial and Provident Societies Acts are necessarily societies for carrying on industries, trades, or businesses, but many of them are bodies of a philanthropic nature which do not trade for profit. In regard to the liability of cooperative societies to Income Tax, I would refer the hon. Member to an answer given to him by my right hon. Friend the Prime Minister, when Chancellor of the Exchequer, on 8th May, 1907.