I support the new Clause, but I should like to take the other side of the counter from that taken by my hon. Friend the Member for Crosby (Mr. Graham Page). He has spoken, quite rightly, about the position of the employee, but I want to take the position of the employer.

Quite obviously, it is essential in the modernisation and rationalisation of industry that there will be some firms closing down and others starting up. As I understand it, the law at present is that redundancy payments paid on the cessation of trading are not allowed for tax purposes because they are not expenses wholly incurred for trade but incurred only when ceasing to trade. I am sure that my hon. Friend who is to reply will agree that this is anomalous.

Here we have the Government, on the one hand, saying that they will be generous with regard to redundancy payments due to employees, if my hon. and learned Friend's Clause is accepted, but it is anomalous that if the employer wants to be generous he is further penalised in that he is not allowed to charge the redundancy payments for tax purposes. In those circumstances, although I cannot move my new Clause No. 53, I should be glad if my hon. Friend would say a word about it when he replies.