§ Mr. Blakerasked the Chancellor of the Exchequer whether he is now able to announce the result of his study of the recommendations of the working party set up by the National Economic Development Office for tax changes designed to encourage the overseas earnings of civil engineering and process plant contractors.
§ Mr. TaverneThe Government recognise the value of the contribution of these activities to exports and invisible earnings. But my right hon. Friend is not at present convinced that this in itself justi-
306Wto be imposed on the basis that selective employment tax were abolished.
§ Mr. DiamondAny tax of the kind that my hon. Friend has in mind, replacing both S.E.T. and Purchase Tax, would need to be of wide coverage, including essential goods and services, or at high rates—or both.