§ Mr. David Howellasked the Chancellor of the Exchequer what representations he has received concerning the application of 25 per cent. rate VAT to electronic components; what product categories have been identified by Customs and Excise for charging at 8 per cent.; and what further proposals he has for overcoming difficulties of definition arising in this area.
80W
§ Mr. DellThe sterling cost to the Exchange Equalisation Account of the exchange cover arrangement will depend partly on the relationship between the sterling exchange rate at the beginning and at maturity of individual loans, and partly on the difference between sterling and overseas interest rates throughout the period of the loans. The assessment of any eventual net cost to the Exchange Equalisation Account can only be completed when the borrowing undertaken through this arrangement has been repaid.