§ Mr. Evelyn Kingasked the Secretary of State for Trade what estimate he has as to the effect upon the export trade of a diminution in production of small boats in Great Britain, following the new rate of VAT.
§ Mr. DeakinsThe increase in VAT does not apply to exports. No estimate is available of the indirect effects of the increase in the tax rate on the exports of small boats but any estimate would need to take into account a number of factors, including the state of overseas demand and the relative price competitiveness of our small boats, as well as the state of domestic production.