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Finance Bill

Thank you for calling me to speak, Mr. Gale. I am delighted to see you in the Chair. I have three points to make. First, there is agreement over the broad principle that managed service contracts should not be allowed to exist as a cynical tax dodge—as I believe the hon. Member for Wirral, West (Stephen Hesford) might describe it—but there seems to be some question over the real scope of the existing problem. I was uneasy when I heard John Whiting of PricewaterhouseCoopers give evidence to the Treasury Committee on this subject. He said:"““I have seen various estimates, certainly estimates of 100,000 or more employees or individuals under this regime. It is very difficult to get an exact figure because very often these populations by nature are transient and rapidly changing.””" That alone should be sufficient justification for my hon. Friends’ cautious amendment proposing deferral while further study takes place.