It must obviously have an effect on both, and it would be our wish that it should have an effect on both. Though it may be early days to assess the matter precisely, I think that we can fairly claim that the effect is already flowing. Time will show whether all these measures—all four of them—are fully effective, but the present indications are that they are having both effects.
That brings me to the point put by the hon. Member for Grimsby when he asked precisely how effective these allowances are. He said that it is quite impossible to make a precise calculation, and that is quite true, but some answer may be that my right hon. Friend deliberately chose an improvement of the investment allowances as being one of the most effective inducements to investment. A further comment is that an estimate of cost is, again, an imprecise thing at this stage, but may provide a yardstick by which in time, precise measurements can be made. The cost of the investment allowances is estimated at £8 million this year, £52 million next year, and £70 million in a full year. That probably has a bearing on the N.E.D.C. Report.
I should like now to refer to a technical point in relation to the phrase
…expenditure incurred after the 5th November, 1962…
For the avoidance of doubt, I should like to define that phrase. It means, by virtue of Section 330(2) of the Income Tax Act, 1952, sums payable after that date, whenever contracted for. I hope that that may assist in resolving that doubt.