§ Mr. Spearingasked the Chancellor of the Exchequer what are the categories of, and the actual commodities or services concerned or referred to directly or indirectly, in the reasoned opinion he has received from the Commission of the European Communities in respect of article 169 of the treaty of Rome, referred to in the reply to the hon. Member for Newham, South of 28 November, Official 98W Report, column 476; and if he will place a copy of the communication and any reply by Her Majesty's Government in the Library.
§ Mr. Hayhoe[pursuant to the answer, 3 December, Col. 17]: The goods and services which form the subject of the reasoned opinion are listed fully in the press release issued by the Treasury on 15 October, the text of which I will with permission annex to this answer.
In my reply to the hon. Member on 28 November (Col. 476) I said that the United Kingdom Government do riot accept the Commission's views. A reply to the reasoned opinion has been sent to the Commission. This questions the basis on which the Commission allege that the zero rates in question are not permitted under article 28 of the sixth VAT directive. In the United Kingdom Government's view the Commission's interpretation of the term "final consumer" is not supported either by the second or sixth VAT directives.
In the reply, attention has also been drawn to two errors of fact. The first concerns sewerage and water; the second concerns construction and associated services, where the Commission has failed to take account of the changes in the 1984 Finance Act.
While I am anxious to keep the House fully informed about this matter, it has not been the practice to deposit in Parliament documents such as the reasoned opinion and the reply, which are confidential to the Commission and the Government.
Following is the press release:
15 October 1984