§ Mr. Teddy Taylorasked the Secretary of State for Trade (1) if he will endeavour to find out from the EEC what the purpose of the 12 per cent. levy on imported potatoes is which was introduced on 25th April;
(2) if the EEC obtained, or was required to obtain, the permission of Her Majesty's Government to impose a 12 per cent. levy on potatoes imported into Great Britain from foreign countries; and whether Great Britain or the EEC obtains the money raised in this new food tax.
§ Mr. MeacherThe 12 per cent. charge on new potatoes is not a new tax. It is a protective import duty that was suspended until 25th April in accordance with The Import Duty (Temporary Reductions and Exemptions) No. 7 Order 1976, after which the duty automatically became effective again. The Council of Ministers in fact decided on 29th April to extend the suspension until 20th May. I am recommending the Treasury to make a further order to implement this decision.
In accordance with Article 28 of the Treaty of Rome any suspension or alteration of an EEC customs duty requires a unanimous decision of the Council of Ministers, which includes, of course, a member of Her Majesty's Government.
The question who would obtain money raised by a new tax would be a matter for my right hon. Friend the Chancellor of the Exchequer, but I understand that the United Kingdom's contribution to the European Communities funds is not at present directly dependent upon the amount of United Kingdom import duty collected.