§ Major Procterasked the Chancellor of the Exchequer (1) if he is aware of the uncertainty of business people as to the precise meaning of the Government's statements regarding the rebate from Excess Profits Tax payments, particularly in regard to the use to which these repayments may be put; and if he can now state the approximate date when this money will be available for use;
(2) whether the repayments to manufacturers from the Excess Profits Tax can be used to purchase new machinery for extension of business as well as for the purchase of new machinery for replacement purposes.
§ Sir J. AndersonI would refer my hon. and gallant Friend to the provisions of Section 37 of the Finance Act, 1942, from which he will see that while the date of the payment of the Excess Profits Tax post-war credit has to be prescribed by1952W Parliament the only conditions governing the payment will be conditions relating to distribution for benefit of shareholders. The purpose of this Section was to remove any doubts of the kind referred to in the Question, and as stated in my Budget speech it is now quite clear that all trading concerns can look forward with certainty to their post-war Excess Profits Tax credits being available to cover all post-war capital expenditure, including expenditure on rehabilitation, reconstruction and development. This covers, of course, the purchase of new machinery for extension as well as for replacement.