§ Mr. Spearingasked the Secretary of State for the Environment (1) if he will estimate the increase in cost in money and percentage terms to private and public funds, respectively, of the application of value added tax to all new building and construction work, on the basis sought by the Commission of the European Economic Community;
(2) if he will estimate the increase in cost in money and percentage, respectively, of applying value added tax to sewerage services and water, on the basis sought by the Commission of the European Economic Community;
§ Mr. Brooke[pursuant to his reply, 21 October 1986]: The Government do not accept the Commission's contention that the sixth VAT directive requires the imposition of VAT on sewerage services and water. If they did, however, the increase in cost would depend on the rate imposed.