HC Deb 01 July 1969 vol 786 cc222-4
13. Mr. John Hall

asked the Chancellor of the Exchequer if, on the United Kingdom's becoming a member of the European Economic Community, he intends to introduce the value-added tax system.

26. Mr. Kenneth Baker

asked the Chancellor of the Exchequer what arrangements he is making to implement a value-added tax in the United Kingdom in view of the renewed negotiations to enter the Common Market.

Mr. Diamond

The Government's position remains as indicated in the full statement made to the House by my right hon. Friend the Prime Minister in May, 1967, and in paragraph 44 of the statement made by my right hon. Friend the then Secretary of State for Foreign Affairs at the meeting of the Council of the Western European Union in July, 1967, the text of which was presented to Parliament as Cmnd. 3345.

Mr. Hall

While thanking the right hon. Gentleman for that informative Answer, may I ask him to be aware that the members of the E.E.C. have agreed to introduce a value-added tax not later than 1970? If Her Majesty's Government are really serious in their attempts to join the Community, will not the achievement of that desire be made more difficult if we, too, are not prepared to go over to a value-added tax system? Will the right hon. Gentleman therefore take steps to prepare Britain for the introduction of such a system?

Mr. Diamond

My Answer particularly referred to what the then Foreign Secretary said and covered exactly the supplementary question which the hon. Gentleman has asked.

Mr. Baker

Would the right hon. Gentleman ask his right hon. Friend the Chancellor of the Exchequer, before he makes another weekend speech of rhetorical questions, to note what the Shadow Chancellor of the Exchequer has said on the subject of the value-added tax system, in particular about it not applying to foodstuffs? Will he also bear in mind that many organisations, including the C.B.I. and N.E.D.C., consider that a value-added tax would be not only fair and sensible but likely to be necessary?

Mr. Diamond

We will see what the N.E.D.C. has to say on this subject when its report is published shortly.

Mr. Alfred Morris

While congratulating the Chancellor on his weekend speech, may I ask the Chief Secretary to say how much choice we would have about introducing a value-added tax if we were to join the Community?

Mr. Diamond

I have referred to the very full statements which were made with the authority of the Prime Minister and the then Secretary of State for Foreign Affairs. As I said, they covered all these points completely. I hope that my hon. Friend will refer to them.