Eighth Schedule. — (Purchase Tax.)

Orders of the Day — FINANCE (No. 2) BILL – in the House of Commons at 12:00 am on 22 June 1948.

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Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North 12:00, 22 June 1948

I beg to move, in page 69, line 32, to leave out "Second," and to insert "First."

This Amendment carries out the undertaking I gave on my right hon. and learned Friend's behalf on 11th June that the Purchase Tax on utility fur garments would be reduced from 66⅔ per cent. to 33⅓ per cent.

Amendment agreed to.

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

I beg to move, in page 71, line 25, at the end, to insert: (d) Articles of bedding of the following descriptions, not being utility articles, that is to say, pillows, bolsters, soft-filled mattresses and upholstered spring interior mattresses First. This Amendment carries out the undertaking to reduce the tax on the articles named in the Amendment from 66⅔ to 33⅓ per cent.

Photo of Mrs Jean Mann Mrs Jean Mann , Coatbridge

I should like to ask my hon. Friend whether he will not exempt secondhand Army reconditioned blankets. I understand that at present they carry tax at 66⅔ per cent. my proposed Amendment, in page 71, line I want to know whether he will accept 25, at the end, to insert: (d) Secondhand Army reconditioned blankets Exempt. I do not know the reason for having such a high tax on such humble domestic articles. I believe the policy has now been reversed, and that the Chancellor wishes to see prices reduced. I understand an appeal has gone out in the White Paper asking everyone to try to bring prices down. It is very difficult to understand why then tax at 66⅔ per cent. should be—

Photo of Mr James Milner Mr James Milner , Leeds South East

I am sorry, but the Amendment to which the hon. Lady is referring, and which concerns secondhand blankets, has not been selected by Mi. Speaker, and I am afraid, therefore, that she cannot raise that matter now.

Amendment agreed to.

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

I beg to move, in page 72, line 39, to leave out "Paper handkerchiefs, paper towels."

This Amendment is to carry out the undertaking to exempt these articles from tax altogether.

Amendment agreed to.

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

I beg to move, in page 73, line 9, to leave out "paragraph (e),"and to insert: sub-paragraph (iii) of this paragraph or in paragraph (e) or paragraph (n). This Amendment, together with the following Amendment, carries out the undertaking given to reduce the Purchase Tax on kitchen cupboards and dressers from 66⅔ per cent. to 33⅓ per cent.

Amendment agreed to.

Further Amendment made: In page 73, line 12, at end, insert: (iii) Cupboards and dressers designed for use in kitchens, except those comprised in paragraph (e) or paragraph (n) of this Group … … First."—[Mr. Jay.]

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

I beg to move, in page 74, line 11, at the end to insert: (r) Parallel-sided or tapered baths of galvanised steel not less than 42 inches in length over all … … … Exempt. This Amendment carries out the undertaking to exempt baths of the kind mentioned from Purchase Tax.

Photo of Mr Ralph Assheton Mr Ralph Assheton , City of London

Would the hon. Gentleman explain the significance of the words "parallel-sided or tapered"?

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

This is a type of bath that is not normally built into premises but is usually bought separately.

Photo of Mr Ralph Assheton Mr Ralph Assheton , City of London

Is it not an idiotic expression?

Amendment agreed to.

Further Amendment made: In page 74, to leave out lines 19 to 24, and to insert: (b) Space heating appliances (including appliances of a kind used for boiling or cooking and also for space heating), instantaneous water heaters, immersion water heaters, storage water heaters, circulator water heaters for tank storage and water boilers for tank storage or central heating—(i) suitable for operation from electric mains, except appliances comprised in paragraph (e) of this Group Third(ii) suitable for operation from gas mains Second—[Mr. Jay.]

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

I beg to move, in page 75, line 31, after "lighting," insert: except those comprised in paragraph (d) of this Group. This Amendment and the following Amendments provide exemption from Purchase Tax in the case of oil-burning and paraffin lamps and certain accessories.

Amendment agreed to.

Further Amendments made:

In line 39, leave out "oil or."

In line 41, after "mantles," insert: except those comprised in paragraph (d) of this Group.

In line 44, at end, insert: (d) Oil-burning lamps of a kind used for interior domestic or office lighting and accessories for such lamps:—(i) articles not comprised in the following sub-paragraphs of this paragraph Exempt(ii) incandescent mantles, and glass chimneys and similar primary glasses Exempt(iii) globes, shades and reflectors First" —[Mr. Jay.]

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

I beg to move, in page 76, line 15, to leave out "Second," and to insert "First."

This Amendment, together with the following two Amendments, reduces the Purchase Tax on clocks and watches from 66⅔ per cent. to 33⅓ per cent.

Amendment agreed to.

Further Amendments made: In page 76, line 28, leave out "Second," and insert "First."

In line 44, leave out "Second," and insert "First."—[Mr. Jay.]

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

I beg to move, in page 77, line 7, to leave out "Second," and to insert "First."

This Amendment reduces the Purchase Tax on radio sets and television sets from 66⅔ per cent. to 33⅓ per cent.

11.15 p.m.

Photo of Mr Gilbert McAllister Mr Gilbert McAllister , Rutherglen

I am sure everyone will welcome the announcement which the Economic Secretary made a few days ago. The radio industry are probably well satisfied with the concession which was announced then. I should like to ask my hon. Friend to reconsider this matter before the final stage of this Bill, because there is one small injustice which is done by the Amendment, as drafted, and although it is small it is nevertheless not insignificant. What I am referring to is that while the tax on radios of all kinds is reduced by 33⅓ per cent., the tax on radio gramophones stands at 66⅔ per cent. I have in mind a small factory in Scotland, one of the few radio industries in Scotland, which happens to manufacture nothing whatsoever but radio gramophones. They have reduced their costs of production to an extraordinarily low level so that they are able to offer the consumer, leaving Purchase Tax aside, a radio gramophone which costs little more than the ordinary console radio set.

Photo of Mr James Milner Mr James Milner , Leeds South East

The hon. Member is referring to an item which is not in this Amendment, and I am afraid he is out of Order.

Photo of Mr Gilbert McAllister Mr Gilbert McAllister , Rutherglen

Further to that point of Order; when the Economic Secretary made his announcement in the House, he specifically added to his own announcement that radio gramophones were excepted. It did puzzle me, and I put down an Amendment which you, Mr. Deputy-Speaker, are not calling. In the course of legitimate discussion on these matters, where can such a matter be debated if it cannot be discussed under wireless receiving sets and the like, seeing that my Amendment is not called? The Rules of Order should make it possible to discuss what seems to me to be an injustice.

Amendment agreed to.

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

I beg to move, in page 78, line 22, at the end, to insert: and except for bottoms of wood or other vegetable substance. This carries out the undertakings to reduce the Purchase Tax on baskets with the bottoms mentioned.

Amendment agreed to.