HC Deb 19 June 1972 vol 839 cc4-5
5. Mr. Denzil Davies

asked the Secretary of State for Wales whether he will call a meeting of representatives of the Trades Union Congress and the Confederation of British Industry in Wales to discuss the effect of the imposition of the value added tax upon the Welsh economy.

Mr. Peter Thomas


Mr. Davies

Is the right hon. and learned Gentleman aware that the Treasury apparently has no idea at all how much money will be raised in Wales by the imposition of value added tax or how that compares with the amount raised at the moment through SET and purchase tax? Would it not be in the interests of good government to hold an inquiry to see what the effect of value added tax will be in Wales?

Mr. Peter Thomas

The hon. Gentleman suggests an inquiry whereas the Question asked me to arrange a meeting between the TUC and the CBI. I am always happy for those two bodies to get together, but I see no real purpose in my calling such a meeting to discuss value added tax.

Mr. George Thomas

The Secretary of State has missed the point. Is he not aware that my hon. Friend is asking him to get these bodies together to consider the effect of value added tax? Would he not agree that this is bound to increase the cost of living substantially in Wales? Will he now take action?

Mr. Peter Thomas

I see no reason to think that Wales will be adversely affected by the introduction of value added tax and I see no reason why either industry or the consumer in Wales should be affected any differently from industry or the consumer in the rest of the United Kingdom.