§ Mr. Martenasked the Chancellor of the Exchequer if he is aware that the exclusion of British launderers and cleaners from investment grants is retarding their modernisation plans, is so reducing their profits that their employees on profit-sharing agreements are suffering and that some laundries are paying out in Selective Employment Tax more than their profits; and if he will take steps to alleviate the situation.
§ Mr. DarlingI have been asked to reply. The investment grant scheme was designed to concentrate available resources on assistance to the manufacturing, extractive and construction industries, whose growth and efficiency can contribute most to the improvement of our economic position. It would be inconsistent with this objective to apply346W these grants also to service industries. Expenditure on new plant and machinery used by service industries does however benefit from the increase, from 10 per cent. to 30 per cent., in the initial allowance for taxation.