HC Deb 22 June 1951 vol 489 cc90-1W
Mr. Brook

asked the Chancellor of the Exchequer whether he can now state the outcome of the negotiations with the cinema industry on the rates of Entertainments Duties and the production levy.

Mr. Gaitskell:

Yes. I propose to move an Amendment on the Report stage of the Finance Bill, of which the effect as regards the main cinema prices will be as follows:

  1. (a) admissions up to 7d. to remain exempt from duty;
  2. (b)from 8d. to 10d. (including duty) to remain at the pre-Budget rates;
  3. (c) 1s. inclusive to be subject to 2d. duty in place of the pre-Budget rate of 3d.
  4. (d) 1s. 3d. and Is. 6d. inclusive to be raised in price by 3d., of which 1½. will be additional duty;
  5. (e) 1s. 10d. inclusive to be raised in price by 3d., of which lid. will be additional duty;
  6. (f) 2s. 4d. and 2s. 10d. inclusive to be raised in price by 3d., of which 2d. will be additional duty;
  7. (g) above 2s. 10d. inclusive to be raised by correspondingly larger amounts of which all except Id. in each case will be additional duty.

As part of the negotiations leading to this result, it is contemplated that an agreement shall be concluded to continue the arrangements entered into last year under which payments are made to the British Film Production Fund, and to increase the amount of the payments by an extra 1½. for each admission at an inclusive price exceeding 1s., for three years, from 5th August, 1951.

The increased prices on the is. 3d., 1s. 6d. and 1s. 10d. cinema seats are necessary to provide for increased payments to the British Film Production Fund. This obligation does not arise at all in the case of prices for horse, dog, and speedway racing, or other entertainments liable to the full scale. The schedule will not therefore necessitate any increase in the 1s., 1s. 6d., 1s. 9d. and 2s. prices for speedway racing, but the yield to the promoter on the 1s. seat will be increased by 1d. and by ½d. on the 1s. 6d. and 1s. 9d. seats. On the 2s. seat the promoter's return will remain unchanged.

The Amendment, which will provide for the new rates of duty to come into operation from 5th August, will be placed on the Order Paper as soon as formal agreement between the four associations representing the exhibitors, the renters, and the producers of the two main categories of British films has been signed.