§ Mr. Ovendenasked the Chancellor of the Exchequer if he will make a statement explaining the Government's attitude towards the recommendation of the Paper and Board Sector Working Party concerning the need to recognise in the taxation system the cyclic and capital intensive nature of the industry and the effects of these factors on its profits.
§ Mr. Joel Barnett, pursuant to his reply [Official Report, 21st April 1978], gave the following information:
464WThe latest report of the Paper and Board Sector Working Party—published recently by NEDO recommends that the Government should consider making allowance for the cyclic and capital intensive nature of the industry in any future prices legislation, rather than in the taxation system. The Government are currently considering their response to the recommendations in the report. The tax system does make provision for the needs of the industry, but I would be glad to consider any specific proposals the sector working party may wish to put forward.