§ Question proposed, That the clause stand part of the Bill.
8.45 pm§ Mr. George CunninghamThe clause relates to VAT, and it would be useful if the Minister could give us the latest information that he has about the intentions of the Isle of Man Government with regard to the future of value added tax on the island. The matter featured greatly in discussions in the Isle of Man, and it is of great interest to people in the United Kingdom whether there is to be a different regime in the Isle of Man.
§ Mr. Peter ReesIn clause 6 of the agreement which was signed in October, the Isle of Man undertook to keep the rates and coverage of the taxes in harmony with the remainder of the United Kingdom. The agreement can be terminated by new notice, but there is no 1618 evidence that the Isle of Man intends to terminate it. Short of termination, VAT will remain with the same coverage and the same rates.
§ Mr. DalyellOn the question of VAT, what is the financial relationship between the Isle of Man and the European Community? Docs the Isle of Man accept the European Community spending?
§ Mr. ReesThat is perhaps rather more a matter for the Home Office. The Isle of Man acceded to the European Community under the third protocol to the Treaty, and in matters such as fiscal harmonisation the Isle of Man is a proper member of the Community.
§ Question put and agreed to.
§ Clause 6 ordered to stand part of the Bill.
§ Clauses 7 and 8 ordered to stand part of the Bill.