§ 9. Sir J. Gilmourasked the Secretary of State for Scotland what representations he has received about the possible effect of value-added tax on agricultural production in Scotland.
§ Mr. Buchanan-SmithThe Scottish Landowners' Federation has represented that food, food prcducts and agricultural rents should be zero-rated rather than exempted.
§ Sir J. GilmourDoes my hon. Friend agree that since very large increases in the basic price of food are bound to take place as a result of our joining the Common Market, the incidence of V.A.T. should be kept to the minimum in those cases which affect agriculture—such as repairs, renewals, leases and sales?
§ Mr. Buchanan-SmithThe Chancellor announced in his Budget speech last year that food, except perhaps those items which are subject to purchase tax, would be relieved of V.A.T. The Chancellor will shortly be making a statement about this.
§ Mr. DouglasIn the particular circumstances prevailing, would not the Minister press for a zero rate?
§ Mr. Buchanan-SmithThat is a matter for my right hon. Friend the Chancellor of the Exchequer.