Skip to main content

Imports (Deposit Scheme)

Volume 922: debated on Tuesday 14 December 1976

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer what is his estimate of the amount which would be deposited by importers in a full year if an import deposit scheme on the Italian model were to be introduced.

With United Kingdom imports running at over £24 billion in the past year, the amount which would be deposited by importers under a 50 per cent. scheme would be substantial. The net revenue yield during the year would depend on how long the deposits were held. For example, if the deposits were held for 90 days as in the Italian scheme the net revenue yield would effectively be reduced to about 12½ per cent. Moreover, the net revenue yield would be further reduced to the extent that there was any deferment or reduction of imports, and would of course be entirely reversed upon repayment of the deposits. Any such scheme would not be without considerable disruption and cost both at home and overseas.