§ Viscount HANWORTHMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether in view of the publicity they are giving to saving fuel by improving house insulation they will take action to remove the anomaly whereby fibre glass insulation is zero rated for VAT when professionally installed but not so when bought for do-it-yourself installation by the public.
§ Lord JACQUESMy Lords, a wide range of materials is used for house insulation. To zero rate some andleave others at standard rate would create anomalies. Furthermore, the materials have other uses and it would be quite impossible to restrict any tax concession to insulation.
§ Viscount HANWORTHMy Lords, while thanking the Minister for his reply, may I ask whether he can first of all explain why it is that there is no VAT if fibre glass insulation is installed professionally? Secondly, does he appreciate the enormous advantage—a 20 per cent. saving in energy—gained by installing roof insulation, which can easily be done by the householder? Does he appreciate how much in this direction in the way of grants is being done abroad? Finally, does he not think that this attitude to a large extent undermines the credibility of the Government's efforts to improve the energy situation?
§ Lord JACQUESMy Lords, the noble Lord has in part answered the question himself. He said that there was a considerable saving, and it is because there is 272 a considerable saving in roof insulation that the VAT of 8 per cent. is not a disincentive. The present position results from the need for control. When the registered trade carries out the work, then the use to which the materials are put is known—it is a fact—but when goods are sold over the counter it is not known to what use they will be put. Therefore, it is for control purposes that we have the present position.
§ Viscount HANWORTHMy Lords. the Minister has said that there are other uses for these materials. I accept that. but I should be interested to know what some of these other uses are and whether they represent more than a very minor proportion of the sale of those insulating materials.
§ Lord JACQUESMy Lords, some of the materials which are used for roof insulation have other uses where even more of the material is used. For example, all the materials which are used for carpet underlays are also used for roofing materials but they have a greater use as a carpet underlay.
Lord BELHAVEN and STENTONMy Lords, have Her Majesty's Government any plans for getting rid of this iniquitous tax, VAT, altogether?
§ Lord JACQUESMy Lords, I think that is a good deal to be said for getting of all taxes.