§ Mr. Ben Whitakerasked the Chancellor of the Exchequer how he will ensure that the proposed refund of Selective Employment Tax will in each case result in increased efficiency and lower prices rather than in increased profits.
§ Mr. CallaghanI think my hon. Friend has in mind the premiums, not the refunds, which merely cancel out the tax in those sectors where no impact is 337W sought. The premium is a reduction in direct costs similar to any other cut in the costs of labour and materials, and I rely upon it to have a comparable effect on prices, which are generally related to direct costs of production.