Orders of the Day — Industrial Development Bill

Part of the debate – in the House of Commons at 12:00 am on 19 July 1966.

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Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Worcestershire South 12:00, 19 July 1966

All these are the capital equipment stock in trade of a modern hotel. In my judgment, it is wholly wrong to deny appropriate capital allowances to such equipment in the case of the hotel industry in Britain. During the Committee stage on the Finance Bill, I said—and it is equally apposite today —that in the 21 years since the war we have had three forms of capital allowances. The first were the initial allowances, which were merely interest-free loans. The next were the investment allowances, brought in by the Tories a few years ago. The third are the cash grants under Section 1 of this Bill, which are designed to replace the investment allowances. But they do not replace the investment allowances entirely, because they leave out two large tranches of capital equipment in translating from investment allowances to cash grants. They leave out the whole of commercial and industrial transport, and they leave out the whole of the capital equipment for the hotel and tourist trade.