asked the President of the Board of Trade whether he is aware that import permits for motor cars have been granted on the ground that they were gifts in circumstances in which an ordinary commercial sale had in fact taken place between a seller overseas and a buyer in this country; and whether he will take steps to put an end to this practice which deprives the Treasury of Purchase Tax and Import Duty and impairs this country's foreign exchange arrangements.

Applications for licences to import motor cars are granted only when the supporting evidence indicates that the gifts are genuine and that there is no loss of foreign exchange, and, save in exceptional circumstances, only when the gifts are from near relatives. If the hon. Member will send me particulars of any cases in which there are grounds for believing that licences have been obtained on false or misleading statements, I will have them investigated. Purchase Tax and Import Duty are payable on all cars of foreign manufacture imported as gifts.