§ Mr. Wigley
asked the Secretary of State for Wales what guidance he has given to area health authorities in Wales with regard to the treatment of value added tax on tenders by private contractors to undertake work for the authority in competition with National Health Service contractors.
§ Mr. Nicholas Edwards
Health authorities were given advice on the treatment of VAT on tenders by private contractors in Welsh Office circular WHC(83)24 which asked health authorities to invite competitive tenders for the provision of domestic, catering and laundry services. Further guidance on the refund of VAT payments to authorities is to be issued shortly.