§ 71. Mr. Bartlettasked the Chancellor of the Exchequer whether he is aware of the widespread hardship which will be caused to farmers by his decision that they will in the future have to pay a tax 103W of £12 a year instead of 5s. if they use their tractors to haul trailers on a public highway; and whether, in view of the fact that tractors are normally used for this purpose only over very short distances, he will have the decision rescinded.
§ Sir S. CrippsProvision was made in the Finance Act, 1943, for duty at 5s. without limitation as to distance on agricultural tractors used for hauling farm produce or requisites. This provision was not intended as a financial inducement to fanners but was designed as a temporary measure to meet a war-time situation in which there was an acute shortage of commercial vehicles available to farmers. That shortage has now gone and the provision which allows these tractors to compete anywhere with other vehicles paying the full rate of tax, and which has always been criticised by hauliers, can no longer be justified. The £12 tax to which tractors used on the roads will now become liable again is considerably less than the rates applied to commercially-owned tractors and is the rate which applied before the war. I cannot agree that to restore the normal state of affairs causes any hardship to farmers. My right hon. Friend the Financial Secretary has received a deputation from the National Farmers' Union this morning and I will, of course, carefully consider the arguments put before him, but as at present advised I regard the decision which I have made as perfectly justified.