Clause 79. (TRANSITIONAL RELIEF FOR EXISTING COMPANIES WITH OVERSEAS TRADING INCOME.)

Part of the debate – in the House of Commons at 12:00 am on 22 June 1965.

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Photo of Mr Jo Grimond Mr Jo Grimond , Orkney and Shetland 12:00, 22 June 1965

I do not know when the Report stage will be finished. I hope to get away before the end of August.

Having deliberately set out, and rightly so, in his further proposals to make it clear to companies that, to some extent, the Chancellor's mind is still open—that he is prepared to wait for the results of his inquiry and that he does not want unduly to penalise companies if they prove their case and show that their overseas investments are worth while—it would be worth his while to go further and say that if it can be proved that some companies under this transitional relief will not be as satisfactorily effected as he wishes, he will take further steps both as to the amount and the timing.

I have shown that several important points remain outstanding, including the one about shareholders, the base years and the fact that it may turn out that the period will need to be adjusted. I have pointed out that the period will be open for adjustment and review in subsequent years. I welcome the changes the Chancellor is proposing and I hope that he will confirm the purpose of them. I hope that he will reiterate his desire to have a proper and impartial inquiry into this matter so that he may further set at rest some of the misgivings which have been expressed and which, to some extent, continue, particularly among some of the largest companies operating overseas, which are the most valuable to this country.