§ Mr. Nicholas Bakerasked the Chancellor of the Exchequer what representations he has received from representatives of the United Kingdom bloodstock industry about the imposition of value added tax upon sale of horses and the effect of this tax upon the industry; and whether he proposes to take any action in this matter.
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§ Mr. Peter ReesOn 2 July, I met a deputation representing the bloodstock interests, led by my hon. Friend the Member for Richmond, Yorks (Sir T. Kitson) and further written representations have since been received, expressing grave fears of injury to the industry as a result of the application of value added tax. Notwithstanding the success of the autumn sales of bloodstock in the United Kingdom, the Government recognise, and take very seriously, the competitive disadvantages suffered by the United Kingdom industry as a result of certain aspects of the VAT treatment of blood-stock and training fees in France and Ireland which are not in conformity with Community VAT law. As to the action we are taking, I refer my hon. Friend to my reply to my right hon. Friend the Member for Taunton (Mr. du Cann) on 2 November.—[Vol. 972, c.637.]