§ Mr. Dalyellasked the Minister of Power if he will make a statement on his suggestion to electricity boards that they should put up their installation charges next year, with a view to creating parity between themselves and private electrical contractors, who pay Selective Employment Tax.
§ Mr. MarshDuring the consideration of the Selective Employment Tax, my hon. Friend, the Financial Secretary to the Treasury, informed the House on 4th August (OFFICIAL REPORT, c. 864–5) that the Government would consider ways of avoiding unfair competition occurring between the nationalised industries and the private sector as a result of the Tax. I think this difficulty in the field of electrical contracting would be met if I were to invite Area Electricity Boards in England and Wales, through the Electricity Council, to include in their costings an amount, equivalent to what Boards would pay if labour employed by them in electrical contracting were subject to Selective Employment Tax, and after making such offsetting economies as are possible, they were to price and tender on this footing from 1st January, 1967. I have so informed the Electrical Contractors Association and suggested that the Association should discuss the details of such an arrangement with the Electricity Council.
I contemplate a similar arrangement in the case of Area Gas Boards.
These arrangements will not affect prices for the supply of gas and electricity.