Charge of Corporation Tax for Financial Year 1973.

Part of Clause 7 – in the House of Commons at 12:00 am on 21 May 1974.

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Photo of Mr Edmund Dell Mr Edmund Dell , Birkenhead 12:00, 21 May 1974

I must leave it to the right hon. Gentleman to sort out with his hon. Friend whether I should read out what is in my book.

I turn now to the question of company liquidity. There was a discussion about Government statements on company liquidity, and figures were given as to the net position compared with the figures which the Government had quoted after taking account of company indebtedness. The£14,000 million referred to as the current company indebtedness, which is to be set off against liquidity figures stated by the Government, is not expected to be called in. I would not expect any Member of the Opposition to suggest that this money would be called in. We think that the figure of£10,000 million fairly represents the position. At any rate, we have no evidence that there is any serious liquidity problem. If there were to be such a problem, that would obviously be a factor of which we should have to take account.

My right hon. Friend the Chancellor has indicated to the banks that he would wish them to assist where necessary with investment and stock building. We are not at present aware that there are serious dangers in that situation. There may be dangers for particular companies, and in those cases we shall have to take account of them, and we hope that the banks will also take account of them.