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Clause 1. — (Machinery and Plant.)

Part of Orders of the Day — Industrial Development Bill – in the House of Commons at 12:00 am on 11th August 1966.

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Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North 12:00 am, 11th August 1966

I take that point. This is an experimental scheme. We have not limited it to one year. We have said that it will certainly be available up to the end of one year. If the hon. Gentleman wishes to extend it beyond that, that is a tribute to the scheme; it shows that it is of some value to the industry.

Some fairly large figures have been used in the debate as estimates of the finance which the industry has lost as a result of the change-over from the investment allowance. Figures even as high as £20 million have appeared in the Press. We are dealing this afternoon with much smaller sums. According to my information, with a 40 per cent. Corporation Tax and with the loss of the 30 per cent. investment allowance, the figures work out in this way, on the basis of the actual capital expenditure which was carried out by the industry in 1964. The amount forgone in the loss of investment allowance in a year would be £2½ million and as much as £1½ million of this would be recouped by reason of