Clause 42. — (Selective Employment Tax.)

Part of Orders of the Day — Finance Bill – in the House of Commons at 12:00 am on 27 June 1966.

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Photo of Sir John Foster Sir John Foster , Northwich 12:00, 27 June 1966

Let us assume for the purposes of this debate that it would be a good thing if we could allow the employment of part-time people, the disabled and elderly. Let us assume that the Financial Secretary agrees with that. I foresee that the debate will turn upon whether it is administratively possible to do this. As a result, suggestions should be made, from all sides of the Chamber, in order to enable the Chancellor to bring this about. I cannot believe that the Government Front Bench will say, "No, our object is to prevent the employment of part-time, disabled or elderly people", or, "We do not care if they are not employed".

Starting on this basis I would suggest a slight amendment to the way in which the hon. Gentleman the Member for Putney (Mr. Hugh Jenkins) envisages his scheme would work. I would tie it in with the calculations made on P.A.Y.E. Take the case of a factory employee. One knows what his hourly wage is because the hours of work are 42 or 44 hours a week or something of that sort. One knows his basic wage and it is quite easy to divide that by the number of hours worked and reach his hourly wage. In the pay slips made at the end of the week one has to add his entitlement to overtime and one has to set down the number of overtime hours worked.

I suggest that instead of relating it to a fixed 40-hour week, the accounts department of the factory, which would have to do the same sum in any event for overtime purposes, could perform the task. There could be some stamps of the main values and where there is a stamp of unusual value, for a person employed for two hours a week or four hours or seven, the stamp should have a tick put upon it by the factory showing that a separate cheque has been sent at the same time.

There could be said to be the possibility of cheating, but the payee's slip must agree with the amount sent in and one has only to look at the payee's slip to see the hourly rate which would be paid. This would help the Ministry of Labour in checking. One would find that the 40 hours a week multiplied by 7d. was a little more expensive in certain cases. But the right hon. Gentleman's calculation is not quite right, as 40 times seven is a little less than 25s.—actually 23s. 4d. I do not believe that the Government Front Bench will say that they are glad that part-time, disabled and elderly people cannot be employed or that they do not care whether they are employed. They will have to say, "If only we could do it, we wish someone would show us how." The hon. Gentleman for Putney has shown us.