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Clause 13—(Relief From Balancing Charges For Certain Cotton Spinning Concerns)

Volume 440: debated on Wednesday 16 July 1947

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7.15 p.m.

I beg to move, in page 9, line 23, after "grant," to insert:

"to concerns in the cotton industry."
This Amendment links up with another Amendment in page 9, line 41, after "cotton," to insert:
"or of staple rayon fibre not exceeding three inches in length."
As the House will remember, this Clause was mentioned in the first place by my right hon. Friend during his Budget speech, and was, as he then said, inserted after consultation with the President of the Board of Trade. It is a provision to assist the cotton industry in its efforts to meet its obligations in the postwar world. The great hope is that cotton concerns will amalgamate and form larger units. It was pointed out to the Government that there might be some holding back on the part of some concerns who might feel they would have to repay to the Government, by way of a balancing charge on the sale of machinery, a good deal of money in the shape of Income Tax. What we are doing here is reducing the rate of Income Tax to half the standard rate. Since the Clause was first drafted, it has been pointed out to my right hon. Friend that certain concerns manufacturing short staple rayon fibre are part of the cotton industry, and there is every reason why they should be included. That is the reason for these two Amendments.

Amendment agreed to.

Further Amendment made: In page 9, line 41, after "cotton," insert:

"or of staple rayon fibre not exceeding three inches in length."