§ 144. Mr. Errollasked the Minister of Fuel and Power whether he will give an assurance that firms which make a partial conversion to fuel oil will not have their allocations of coal and other fuels reduced by a corresponding amount, but will be able to regard their employment of fuel oil as a gross gain in the satisfaction of their total fuel requirements.
§ Mr. GaitskellNo, Sir. The primary object of the oil conversion campaign is to ease the general coal supplies position. Consumers who convert partially to oil will have an assurance of full supplies of oil in respect of that part of their produc-140W tion which they convert, together with their fair share of the available supplies of coal in respect of their remaining production. In order to encourage conversion to oil, the Chancellor of the Exchequer has decided to propose in next year's Finance Bill that the Import Duty of 1d. per gallon should be removed from heavy fuel oil and gas oil. In the meantime, from 1st October, 1946, until the date when the duty is removed, a subsidy of £1 per ton will be paid to consumers in this country. Capital expenditure incurred on plant and machinery in converting coal burning plant to oil burning, including the provision of the necessary storage tanks and piping will qualify for the allowances specified in Part II of the Income Tax Act, 1945, in computing profits for Income Tax purposes.