§ Mr. Chris SmithTo ask the President of the Board of Trade, pursuant to his answer of 16 June,Official Report, column 630, what is the position in relation to VAT exemption for parcels sent via a privatised company by franked or account postage rather than by the purchase of a stamp.
§ Mr. McLoughlinThis issue is discussed in the Government's Green Paper "The Future of Postal Services" (Cm. 2614) published on 30 June. If the Government decide to proceed with privatisation or part-privatisation of the Royal Mail and Parcelforce, they will consider, in the light of EC law, the appropriate VAT treatment for non-obligatory parcels services provided by the new company. Such services would include those offered on account to commercial companies and other organisations, in competition with services from other parcels carriers.