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National Finance

Volume 436: debated on Tuesday 22 April 1947

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Unused Credits

45.

asked the Chancellor of the Exchequer what procedure exists at the present time, and to what extent he is using it, whereby unused credits caused by favourable balances of trade with soft currency countries may be used to pay for purchases from hard currency countries.

In some cases, our Monetary Agreements provide for settlement in gold. In others sterling may be acquired from third countries. Every effort is being made, to secure value for our exports, directly or indirectly, in needed imports or acceptable currencies.

Would the Chancellor of the Exchequer say which of these alternatives has been used in the negotiations carried on with Belgium at the present moment—and almost concluded—because we have a considerable trade balance there?

Perhaps the hon. Gentleman will put that particular question on the Order Paper.

Illegal Jewish Immigrant Camps (Cost)

47.

asked the Chancellor of the Exchequer what part of the cost of erecting and maintaining illegal Jewish immigrant camps falls upon the British taxpayer.

May I ask the Chancellor whether it would not be a good and a deterrent policy to impose a communal fine on all areas in which terrorism takes place?

Flood Damage, Salford (Assistance)

48.

asked the Chancellor of the Exchequer whether, in view of the decision to make Government grants to assist victims of the recent floods, he will now reconsider the refusal to contribute from public funds to the repair of the damage in Salford when the River Irwell overflowed last September.

No, Sir. As I have already told my hon. Friend, while sympathising very much with those who suffered damage in Salford, last September, I am afraid that I could not now apply public funds for this purpose.

May I ask my right hon. Friend what the difference is between losing everything one possessed in Salford in September and losing everything one possessed in the Fen district in March?

I would like to give a sympathetic reply to hon. Members representing Salford because I know what Salford suffered, but the point is that in this national, nationwide catastrophe, great, exceptional measures were taken by the Government in several ways to deal with it. It was an exceptional catastrophe of nationwide significance and we cannot now, I am afraid—I am very sorry to have to say this, but I must say it—date it back to isolated incidents not nationwide, however much we may sympathise with those who suffered.

In view of the fact that three Departments of the Government have already extended sympathy to these victims but nothing more, and that the Government have so generously agreed to contribute £1 million to the Lord Mayor's Fund in London, is the Chancellor aware that the Salford victims have paid a proportion of that £1 million, and why are they not entitled to assistance similar to that given to other people?

All I can repeat is that I have great sympathy for Salford but I cannot, unfortunately, add to what I have already said. I have tried to make it perfectly clear.

In view of the unsatisfactory nature of the reply, I beg to give notice that I will raise this matter on the Adjournment at the first available opportunity.

Paye Forms

49.

asked the Chancellor of the Exchequer whether he will stop the issue of Pay As You Earn booklets to employers whose servants are not liable for Income Tax.

P.A.Y.E. forms are only issued when there is reason to think that an employee, may be liable.

Can the Chancellor say why a considerable number of eight-ounce packets of printed tables have been issued explaining how much people who are not liable for Income Tax would have to pay if they were?

The hon. Gentleman's weighing machine is out of order. What he has received are—I have looked into the case with care—four thin slips. [HON. MEMBERS: "Oh, no."] This has all been looked into. I am speaking of the hon. Member's case, which I have investigated. It is an exaggeration and an inaccuracy to speak of half-pound packets. Four thin slips have been circulated to him because it was thought that one of his employees was liable to Income Tax.

Agricultural Disaster Fund (Farmers' Donations)

50.

asked the Chancellor of the Exchequer if the donations which farmers make to the Agricultural Disaster Fund will be treated as a business expense for Income Tax purposes.

Cannot the Chancellor be rather more generous in this matter as the Fund being raised on the present basis of subscription will be quite inadequate to meet the losses, which are estimated at £20 million?

We gave £1 million to the Lord Mayor's Fund and I have given an undertaking on behalf of His Majesty's Government to make a contribution substantially equal to what is raised by this Fund. If we were to do what the hon. Member suggests, it would only be a rather indirect method of subsidisation through an individual's Income Tax. I think it is much better to do the thing in a straightforward and direct contribution.

Will the right hon. Gentleman bear in mind that some of the contributors to this Fund have themselves suffered, and, being more well paid than some of the other sufferers, they have felt it incumbent on them to give what they can? Would not the Chancellor of the Exchequer make a special case in such circumstances?

I repeat that the way to deal with this is for His Majesty's Government to make a straightforward and direct contribution from public funds rather than to make an exceptional arrangement about Income Tax.

Tobacco Duty

53.

asked the Chancellor of the Exchequer what discussions he had with the United States Government before deciding to raise the duty on tobacco.

Would it not have been advisable to have some talks with the United States before raising this duty?

His Majesty's Government, with the support of the House of Commons, determine the taxes in the United Kingdom.

Overseas Travellers (Allotments)

54.

asked the Chancellor of the Exchequer what sums were allotted during 1946 to travellers from this country for commercial and non-commercial uses outside the sterling area

Has the Chancellor formed any estimate of the additional money that has been "maxintrated" through unorthodox banking channels?

We are after these rogues. We have caught a few, and hope to catch some more.

Anglo-Italian Financial Agreements

55.

asked the Chancellor of the Exchequer if he will give his estimate of the extent to which British holdings of U.S. dollars will be depleted by the operation of Article 8 of the Anglo-Italian Sterling Payments Agreement; how this compares with the estimated savings of U.S. dollars caused by the proposed reduction in the purchase of U.S. tobacco; and for what reason he has permitted this allocation of British holdings of U.S. dollars.

56.

asked the Chancellor of the Exchequer the estimated liability in hard currencies for the current financial year occasioned through the convertibility arrangements in the AngloItalian financial agreements.

I cannot give an estimate of our potential liability in hard currencies, since this depends not only on our own transactions with Italy, but upon Italian transactions with other countries in so far as these are settled in sterling. I agreed that net Italian sterling balances should be so available now, because the Italian Government, on their side, have agreed to hold and not to expend £10 million of these balances. Italy should be an increasingly good source of supply for this country.

In view of the fact that the head of the Italian Financial Mission to this country described the pact as a great financial sacrifice and a great act of friendship on the part of the United Kingdom, can the Chancellor of the Exchequer say whether that sacrifice was the British holdings of dollars now made available to the Italians?

I think that this gentleman on returning to his native land wished to give the best account he could of what he had been doing. I think that in some respects his description was a little hyperbolic. I do not regard this as a sacrifice. It was a good bargain for this country.

Sterling Balances (Norway)

57.

asked the Chancellor of the Exchequer, at the last convenient date, the total of sterling balances held by Norway.

I should prefer, for the present, not to go beyond the particulars contained in Table 30 of Cmd. 7099.

The Chancellor said that he was going to publish information. The table to which he refers gives no information at all except certain wide groups which make any appreciation of this impossible. Can the Chancellor state why he will not publish it, or, at any rate, say that a general impression of the situation shall be given?

In the table to which the Command Paper refers, we published the particulars in certain wide groups, as the hon. and gallant Gentleman says, and I think at the moment, having regard to negotiations which are on foot, it would be on the whole better that we should leave it there. A little later on it might be convenient to break these tables down a bit, but I do not think the moment is quite ripe.