Schedule 14 - Enterprise management incentives: amendments
Finance Bill
12:00 pm
Mr Howard Flight (Arundel and South Downs, Conservative)
First, may I make a distinction between abuse and measures that may be needed to prevent avoidance, and the concept of economic activities that are either more deserving than others or are deemed to be of higher or lower risk? I made the point that the list was born of the BES days and indeed of the previous Conservative Administration. Economic history shows that it was ill conceived at the time. There were comments that BES was being used too much for property investment, and the property market collapsed shortly after. Many people lost a lot of money and learned from their experience. The probing amendment was first tabled to deal specifically with agriculture. While 95 per cent. of farms are not owned individually, there is no great difficulty in people using a corporate vehicle if they wish, and being able to use one of the schemes as a source of badly needed capital. I ask the Government to think further about agriculture.
Secondly, the list is out of date. It reflects moral judgments on the economy made 15 years ago and is well overdue for revision in terms of what areas need capital. As I have said, the amendment is probing. The Minister replied to the effect that agriculture has been examined, but I still believe that that is unsatisfactory.