§ Mr. Wigleyasked the Secretary of State for Trade if he is satisfied that consumer durables imported from Italy do not benefit from hidden subsidies towards the manufacturing companies' costs of electricity, local taxes, services and materials that create a condition of unfair competition for manufacturers in the United Kingdom.
§ Mr. ParkinsonItaly refunds certain internal taxes on exports of mechanical engineering products to other member States of the Community. The refunds were fixed at their present rates in 1973 following a decision of the European Court of Justice, which considered their conformity with article 96 of the Treaty of Rome. I know of no grounds for objecting to them; their value is insignificant, but I will write separately to the hon. Member giving him details.
Although there have been suggestions that Italian steel prices are subsidised, the European Commission has found no evidence of this.
513WExports from Italy are zero rated for Italian VAT, just as United Kingdom exports are zero rated for British VAT.
I am not aware of any other payments to Italian exporters which may have given rise to the hon. Member's question, but if he has any further information I shall be glad to look into it.