§ Mr. Skeetasked the Chancellor of the Exchequer if he will consider the feasibility of permitting the costs of all planning applications or appeals in relation to the mining and quarrying industry to 536W constitute an allowance against corporation tax; and what is his estimate of the cost to the revenue.
§ Mr. Robert SheldonI have noted the hon. Member's suggestion. The cost cannot be estimated.
§ Mr. Skeetasked the Chancellor of the Exchequer if he will seek to amend the Capital Allowances Act 1968 to permit expenditure on capital works connected with the development of mineral resources to attract 100 per cent. first year allowances which appertain to plant and machinery in other industries.
§ Mr. Robert SheldonI have noted the hon. Member's suggestion. An initial allowance of 100 per cent. is already given on the cost of construction of mining works in development areas and Northern Ireland; the rate for expenditure elsewhere is 40 per cent. The 100 per cent. first year allowance for expenditure on machinery and plant applies equally to the mining industry as to other industries.
§ Mr. Skeetasked the Chancellor of the Exchequer if he will seek to amend Section 60 of the Capital Allowances Act 1968 to incorporate both percentage depletion and cost depletion to enable the mineral and quarrying industries to secure and maintain adequate resources for the more effective operation of their businesses.
§ Mr. Robert SheldonI have noted the hon. Member's suggestion, but I think depletion allowances must be related to the cost of acquisition of the mineral asset.