§ Mr. Rees-Daviesasked the Chancellor of the Exchequer whether he will take steps to ensure that thoroughbred racing bloodstock in the United Kingdom pays VAT on the same terms and conditions as in France and the Irish Republic and other Community countries; and if he will make a statement.
§ Mr. Peter ReesI am well aware that some aspects of the VAT treatment of bloodstock in France and the Irish Republic provide their industries with a competitive advantage as compared with the United Kingdom's. Some of these are in our view in conflict with the terms of the EEC sixth Council directive on the harmonisation of VAT. The Government certainly intend to try to secure equal treatment within the Community as a 5W whole, consistent with the terms of the directive.