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Sir Teddy Taylor: The House should realise what it is about tonight. On 12 May 1998, the Chancellor of the Exchequer announced his intention to introduce 100 per cent. first-year capital allowances for spending by small
and medium-sized businesses on machinery and plant for use in Northern Ireland. That was carefully thought out--the Government did not simply shove the measure on the table and then phone up their friends in Brussels to ask them whether it was fair and reasonable.
As I hope that the hon. Member for Croydon, Central (Mr. Davies)--whose speech was so fascinating--appreciates, although the scheme was carefully thought out before being announced by the Government, it has not yet been activated--it has not happened yet. I am sure that he is having a jolly discussion with the hon. Lady sitting behind him, but I hope that he has heard that simple point. Despite that, and although there has been consultation, the Government are now saying that they got it wrong and will have to change it substantially.
The Government are removing the 100 per cent. first-year allowances for transport assets. Why would they do that? Has the road haulage industry had a wonderful time? Is it subject to special preference? We all know that the road haulage industry has had massive new taxes imposed on it, so why are the Government discriminating against it in this measure?
On agriculture and fisheries, the 100 per cent. first-year allowances will be available only for investments authorised with the Department of Agriculture for Northern Ireland as being compatible. The 100 per cent. first-year allowances will be withdrawn if the asset begins to be used outside Northern Ireland within two years of the expenditure being incurred. How on earth will that be implemented? Will the Government introduce passports for machinery, so that, if machinery is moved from Northern Ireland to, for example, Scotland, they can make a note of that and ensure that the allowance is withdrawn?
Those are extraordinary measures, and we should ask ourselves why there is panic and why legislative changes are being made to bash road haulage and to introduce a passport for machinery to ensure that it is not transferred, even for a few days, from Northern Ireland to Scotland. Frankly, that is nutty.
As hon. Members are well aware, I have never been a great fan of grants and allowances in any form. However, the Government are changing a sensible scheme that was carefully thought out and approved by the House. The scheme is very detailed. It says that, to qualify as small and medium-sized enterprises, businesses have to meet two of the following three tests: they have to have an annual turnover of not more than £11 million; they have to have assets of not more than £5.6 million, and they have to have not more than 250 employees. The miracle men of the Treasury had worked out a reasonable, sensible scheme, and the Government are now introducing these rather strange changes before the scheme has even started. I hope that Members will ask themselves, "Why are the Government doing that?"
The Government are not introducing the changes because they are stupid or nasty, although all Governments can, to some extent, be stupid or nasty. Something has happened or someone has said that they must change the scheme. It is pretty obvious that the Government have been involved in discussions in Europe in secret committees, and that they have not been publishing the resulting papers. A report of the code of conduct group was mentioned in the Treasury Sub-Committee only last week. I said that I had heard that there was a great plan to tell us about unfair tax
discrimination and that there was a report on that. I asked whether it was possible to get hold of that report and I was told "No. Such reports are secret and they are not available."
I have a great friend, a brigadier in Gloucestershire, who can always get secret reports if I particularly want them, so I got that report. I have it in my hand. It is not available to the public. It says that there have been two reports of the code of the conduct committee, which is chaired by the Paymaster General.
One report classified items of tax competition that the committee felt were unfair, unreasonable and wrong. Four proposals were made. The first related to the film industry. The poor old film industry had better watch out, because it is going to get clobbered. The second related to tax relief on shipping, and I warn that industry that it, too, will be clobbered. The third related to enterprise zones and the fourth to first-year capital allowances in Northern Ireland. Those were identified by that secret EU committee as one of the flaws in the tax arrangements.
I am sure that you will rule me out of order if necessary, Mr. Deputy Speaker, but what worries me is the contents of the second report of that committee, which are alarming and terrible. When they become public, people will be upset.
As you know, Mr. Deputy Speaker, I had rows with the previous Government just as I do with this Government. Why the blazes will they not tell the people the truth about what is happening in Brussels? Why the blazes will they not publish the reports as they emerge? I am sure that the Government will say that the reports do not require them to take action. We all know what is happening with tax harmonisation and we all know what is being forced on us. We all know what is coming in by the back door, and it is time that people told the truth. I am sure that the Government are exactly the same as the previous Government, and they should tell people what is happening. I ask the Minister why those reports cannot be published. Why cannot the report for which I asked, which emerged in May, be published? Why cannot the Treasury Sub-Committee get hold of it?
I am sorry, Mr. Deputy Speaker, if I am getting bad-tempered in my old age, but what is happening in the House of Commons is appalling. People are not being told what is happening. The Government are making announcements and we are debating measures about which we can do nothing. Although there may be a case for throwing away our democracy, we should be consulted.
Mr. Geoffrey Clifton-Brown (Cotswold):
Does my hon. Friend agree that there is a parallel between this case and the publishing of the minutes of the Bank of England Monetary Policy Committee? If those minutes can be published, why cannot the minutes of the committees to which he refers also be published?
Sir Teddy Taylor:
It is interesting to read the minutes of the Monetary Policy Committee, and I agree with my hon. Friend that the more we publish, the better. We do not want secret information but, if the Government are saying that there are tax mistakes or unfair forms of taxation, Parliament and the people should be told.
Mr. Deputy Speaker (Sir Alan Haselhurst):
Order. I have given the hon. Gentleman considerable leeway. He is, of course, entitled to make his point about the new clause, but he is not entitled to debate the generality of his argument about secrecy and openness. The new clause concerns first-year allowances for investment in Northern Ireland, and his remarks must relate to that.
Sir Teddy Taylor:
I am sorry, Mr. Deputy Speaker. I mention discussions in Europe only because the report specifically says that our grants to Northern Ireland industry are considered wrong and unfair by the code of conduct committee. If we cannot mention that, I do not know why we are in the House of Commons at all. It may be said that the reports are not public and that people cannot get hold of them, but they exist and they arise from meetings that have taken place.
I am very sorry that, for the first time since I came here in 1964--which was a long time ago--I have had a dispute with the person in the Chair. It is not my practice to fall out with those who are in the Chair. However, something very nasty and wrong is happening, and I find it appalling that the Minister can say that the Government have suddenly decided, for no apparent reason, that the allowances that they agreed only last year and that have not yet been introduced must all be changed.
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