§ Mr. Dykesasked the Chancellor of the Exchequer (1) if he will make a further statement about the response of Her Majesty's Government to the judgment of the European Court of Justice, case No. 170/78, on duties on wine and beer levied by the member states;
(2) what plans he has to make the necessary adjustments to excise duties on wine and beer consequent upon the judgment in case 170/78 of the European Court of Justice; and on what time scale.
§ Mr. HayhoeAs I told my hon. Friend the Member for Southend, East (Mr. Taylor) on 18 July 1983, the decision of the European Court on the wine and beer duties will be taken into account when the rates of excise duties are reviewed before the Budget.
§ Mr. Dykesasked the Chancellor of the Exchequer (1) if he will ensure that no steps will be taken by Her Majesty's Government to change the duty rates in favour of imported drinks, following the European Court of Justice decision in case No. 170/78, until such time as the other member states have similarly removed all duty discriminations against drinks manufactured in the United Kingdom and exported to those member states;
(2) if he will make it his policy in the European Community Council of Finance Ministers, that other member states should take retrospective action on earlier judgments of the European Court of Justice to remove unjustified discrimination on duties and taxes, before he brings in changes to United Kingdom duty rates on alcoholic drinks necessitated by judgment No. 170/78.
§ Mr. HayhoeI consider that acceptance of these suggestions would not be in our wider interests. We shall continue to press other member states to implement European Court decisions which affect our exports.
§ Mr. Dykesasked the Chancellor of the Exchequer if he will make a statement on the implications for the United Kingdom drinks industry, arising from the European Court of Justice judgment in case No. 170/78 and the subsequent recent opinion from the Commission of the European Community.
§ Mr. HayhoeThe full implications of the judgment in case No. 170/78 are still being considered, as is the United Kingdom's response to the EC Commission's reasoned opinion on the duties on wine, made-wine, cider and perry.
§ Mr. Dykesasked the Chancellor of the Exchequer (1) if he will make it his policy that any action to alter the relative incidence of excise duty on wines and beers will 186W not have an adverse effect on the competitive position of other domestic industries in the drinks sector, with special regard to British wines and cider;
(2) if he will introduce specific safeguards to assist the British wine industry in the event of a reduction in wine excise duties on imported wines following the verdict of the European Court of Justice in case No. 170/78.
§ Mr. HayhoeThe European Court's judgment in case No. 170/78 does not have any direct effect on the excise duties on made-wine or cider. Any indirect effects will be considered when rates of excise duties are reviewed before the next Budget.
§ Mr. Dykesasked the Chancellor of the Exchequer if, in view of the overall contribution to the economy from the made-wine and cider industries in the United Kingdom, he will make it his policy to resist any proposals from the European Community Commission to increase duties on such beverages following case No. 170/78 and the judgment thereon in the Court of Justice of the European Communities.
§ Mr. HayhoeThe EC Commission has made no proposals for increases in the rates of duty on made-wine or cider but has restricted its interest to the relationship between those rates and the rate of duty on wine.
§ Mr. Dykesasked the Chancellor of the Exchequer (1) if he has any plans to increase excise duties on British wines and English wines;
(2) if he will ensure that any future duty reductions on imported wines are staggered over a sufficient period to allow the British made-wine industry to adjust;
(3) what is his policy towards differential duty rates on British wines in comparison with English wines and imported wines.
§ Mr. HayhoeThe excise duties on wines of fresh grapes and made-wine will be reviewed before the next Budget.
§ Mr. Dykesasked the Chancellor of the Exchequer when he next plans to discuss with his counterparts in the European Community Council of Finance and Treasury Ministers, harmonisation of duty rates on alcoholic beverages in all member states following case No. 170/78 of the European Court of Justice.
§ Mr. HayhoeMy right hon. Friend has no plans to discuss the harmonisation of the structures of the excise duties on alcoholic beverages. The agenda of meetings of the Council of Ministers is a matter for the presidency.