Mr Michael Jack (Fylde, Conservative)

I, too, wish to emphasise and support the line taken by my two hon. Friends. I received representations about the uncertainty. It takes time for the effects of any new allowance to build up and for companies to adjust their investment plans in the light of new announcements. I note that the clause again contains a short-term reconfirmation of this measure. Companies ask, ''When we look forward and plan our information technology strategy, what is our time horizon?'' The time horizon is 31 March 2004. Again an element of uncertainty creeps into our proceedings. Why are the Government seemingly opting for the annual renewal of these measures, when companies want an element of certainty so that they know what their investment programme should be?

I said on Second Reading that it would be helpful to know the economic effect of these micro-management tax measures. Sadly, the notes on clauses do not provide me with an answer. I am not saying for one moment that for some companies this is not an important tax relief, but, as with all reliefs, it is useful to know whether it works, and most companies want to know whether there will be an element of certainty. I should be grateful if the Paymaster General could address those issues when she replies to this short debate.

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