HC Deb 21 April 1980 vol 983 cc18-9W
20. Mr. Arthur Lewis

asked the Chancellor of the Exchequer, in the light of the fact that a number of firms are now adopting a system whereby they pay to their workers earned income free of tax, which has led to the virtual abolition of absenteeism, increased production, export orders being fulfilled in advance of delivery dates, and no industrial disputes, whether he will investigate the firms that are operating this system in order to identify to what extent the application of such a system would improve Great Britain's economic situation; and whether he will make a statement.

Mr. Lawson

There is nothing to prevent any firm from operating the system outlined by the hon. Member, provided of course that it accounts to the Inland Revenue for the correct tax due on the gross equivalent of the wages paid. I do not, therefore, think that an investigation of the kind suggested is necessary.