§ Mrs. Bridget PrenticeTo ask the Chancellor of the Exchequer what estimate he has made of the effect on the number of regional newspapers of the imposition of VAT on books and newspapers.
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§ Sir John CopeAnalysis commissioned by the Newspapers Society suggests that VAT imposition at the standard rate would close 245 titles out of a total of 1,265 titles.
§ Mr. PikeTo ask the Chancellor of the Exchequer (1) what representations he has received regarding the possible imposition of VAT on(a) books, (b) national newspapers, (c) regional newspapers, (d) local newspapers, (e) free newspapers and (f) magazines; and if he will make a statement;
(2) how many representations he has received on the possible introduction of VAT on fares on (a) domestic travel, (b) international travel, (c) rail travel, (d) bus/coach travel, (e) air travel and (f) sea-river travel; and if he will make a statement.
§ Sir John CopeI have received a number of representations which are all being considered very carefully as we prepare for the Budget on 30 November. However, it would be inappropriate for me to comment further at this stage.
§ Mrs. RocheTo ask the Chancellor of the Exchequer (1) what is the normal practice of VAT commissioners on making large repayments other than by electronic transfer;
(2) what plans he has to improve the security involved in transferring money from the VAT commissioners; and if he will make a statement;
(3) how many cheques sent throught the post by the VAT commissioners have been fraudulently encashed in the last five years; what was their value; and if he will make a statement;
(4) whether repayments made by VAT commissioners are usually sent by recorded delivery or registered post; and what is the usual practice on them being made by cheque.
§ Sir John CopeCustoms continually encourages businesses to provide it with bank account details, so that repayments can be electronically transferred. Despite this encouragement, not all traders take advantage of this facility and almost 1 million payable orders, with a total value in excess of £7 billion, are issued each year by first class post.
In conjunction with Her Majesty's Treasury, Customs has been taking steps to increase even further the security measures for payable orders. These include higher levels of security printing so as to make alteration of the payee's name more difficult.
Excluding the recent Haringey case, Customs has investigated 112 cases since 1 July 1988 where VAT payable orders have gone astray. The total value of those orders is £360,638, a substantial proportion of which has subsequently been recovered. During the same period, over 5 million orders have been issued, with a total value approaching £30 billion.