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National Finance

Volume 466: debated on Thursday 23 June 1949

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Sterling Area (Dollar Losses)

52.

asked the Chancellor of the Exchequer how many United States dollars have been lost to the sterling bloc in the six months ended 31st May through sales of wool, hides and skins, rubber and diamonds, respectively, made by countries outside the sterling bloc who purchased these commodities in sterling and resold them in dollars.

I am not able to give any reliable figure for these losses but I take a serious view of them.

In view of the fact that it is probable that this loss will run into some tens of millions of dollars and owing to the very serious position in regard to the dollar, would the hon. Gentleman take some more drastic and effective action than he has done up to date in view of the fact that the leakage has been known and put before him for well over a year?

As the hon. Gentleman knows, we have been taking very drastic steps for a long time past, as my right hon. and learned Friend said only the day before yesterday in this House, and we are taking further steps now, including consultation with the Governments concerned.

Is the Minister aware that I received 30 United States dollars yesterday for royalties on a book entitled "The Case for Communism," and will the hon. Gentleman encourage the sale of this book so that it will be a real dollar earner?

Will the Economic Secretary realise that consultations have gone on for over a year without having the slightest effect, and that they must now be replaced by action?

Income Tax

53.

asked the Chancellor of the Exchequer whether, in view of the fact that in making Income Tax returns, it is legitimate to deduct, by way of expenses, a reasonable expenditure upon necessary entertainments, the Commissioners of Inland Revenue will accept claims for such expenses incurred prior to 5th April, 1948.

I am not clear as to the type of case which the hon. Member has in mind. If he would send me particulars I will look into the matter.

54.

asked the Financial Secretary to the Treasury whether he will reconsider the decision to insist upon the payment of Income Tax in a case, particulars of which have been sent to him, in which the liability arose while the taxpayer was a prisoner of war in respect of earnings by the taxpayer's wife, despite express requests by the latter to the Inland Revenue at the time that appropriate deductions by way of Pay as You Earn should be made from her earnings.

Is the right hon. Gentleman aware that, while his letter is couched in the usual courteous terms, it does not carry the matter any further; and is it not a fact that this liability arose while the taxpayer was a prisoner of war in Germany and arose solely by reason of an error in the tax office? In the circumstances, is it fair to pursue this man into civil life with this liability?

Unfortunately, I have not the authority to allow arrears of Income Tax to go unpaid. Secondly, there is some dispute whether the facts alleged by the hon. Gentleman are correct.

Arising out of the first answer, is the right hon. Gentleman taking any steps on the Finance Bill to arm himself with the powers which he says he unfortunately lacks?

Will not the right hon. Gentleman give some answer to this question, because it was admitted generally by the House over 12 months ago that the House would be only too willing to see this moderate reform carried out?

It can hardly be described as a moderate reform, but the point is, if people who owe arrears of tax do not pay, then those who have paid might feel it would be very unfair to them.

Is not this a most unfortunate attitude on the part of the Financial Secretary. [Interruption.] I am asking whether the right hon. Gentleman does not feel that it is a most unfortunate attitude that we must avoid all reforms of small injustices because great injustices go unredressed?

Riccall Hall, York

60.

asked the Secretary of State for War whether, in view of the fact that Riccall Hall, York, has stood empty for several months in the care of three watchmen working on shifts to prevent squatters, he will take steps to derequisition this building, if it is no longer required by Government Departments, in order that it may be used to alleviate the housing problem in Riccall.

This property is now no longer required by the War Department and in accordance with normal procedure is being notified as redundant to the Ministry of Works. Any application by the local authorities for the use of this property for housing would be a matter for my right hon. Friend the Minister of Health in consultation with the Minister of Works.

Would the Minister bear in mind the intense irritation that is caused when premises of this kind are left unoccupied for some months, at a time of acute housing shortage?

I should point out that this property was offered to the local authorities for housing purposes and was refused by them before it was requisitioned by the War Department.