§ Mr. Austin Mitchellasked the Prime Minister whether Her Majesty's Government will agree to a substantial reduction in excise duties on alcoholic beverages and tobacco to enable all customs barriers on trade with the European Economic Community to be removed by 1992.
§ The Prime MinisterThe Government have fundamental difficulties with the European Community Commission's proposals for the removal of fiscal barriers to trade in the Community—not least those relating to the rates of excise duty on alcoholic beverages and tobacco products.
§ Mr. Austin Mitchellasked the Prime Minister why she agreed to the removal of all customs barriers on trade between the United Kingdom and the rest of the European Economic Community by 1992; and what steps will be taken to protect British manufacturers of alcoholic beverages and tobacco from imports bearing a lower rate of excise duty.
§ The Prime MinisterFurther to the provisions of the original treaty of Rome to which the United Kingdom acceded in 1972, the Single European Act, which was before Parliament when it passed the European Communities (Amendment) Act (which received Royal Assent on 6 November 1986), sets the framework for completion of the single market, which it defines as
an area without internal frontiers,by 1992. The Government are committed to attainment of that goal. How this may be achieved is a matter for discussion within the Community and many member states, including the United Kingdom, can be expected to have strong views on the issue. United Kingdom interests have, however, been safeguarded both by the general declaration on articles 13 to 19 of the SEA allowing member states to maintain national measures for the control of immigration from third countries, as well as to combat drug smuggling, terrorism and crime; and by the requirement that fiscal legislation can only be adopted with the unanimous agreement of the member states.The Commission's proposals are for harmonised rates of excise duty and would not allow alcoholic beverages and tobacco to be imported into the United Kingdom at rates of excise duty lower than those applied here.