§ Mr. FoulkesTo ask the Chancellor of the Exchequer (1) what proposals he has to make the provision of the sixth European VAT directive retrospective to 1 January 1990; and what he estimates will be the effect on local authority capital expenditure since that date;
(2) what proposals he has to refund VAT to golf clubs and other golf course operators as a result of implementation of the sixth European Community VAT directive;
(3) what estimate he has made of the effect of implementation of the sixth European Community VAT directive on the 5 per cent. de minimis exemptions for local authorities for trading activities;
(4) what estimate he has made of the administrative costs to local authorities of the implementation of the sixth European Community VAT directive;
(5) what is the position in the United Kingdom in relation to the implementation of the EC sixth VAT directive; what advice has been issued by Customs and Excise to local authorities on the implementation of this directive; and if he will make a statement.
§ Sir John CopeI assume the hon. Member is referring to my announcement to the House of 22 July 1993,Official Report, column 303, about the prospective VAT 190W exemption for sporting services supplied by non-profit-making sports bodies and local authorities. This will be introduced by Treasury order to implement article 13(A)1(m) of the EC sixth VAT directive with effect from 1 January 1990. At this stage it is not possible to estimate the likely consequences for local authorities. The precise scope and effect of the exemption are at present under consideration in the light of responses from local authorities and others to the consultation paper issued by Customs and Excise. I hope to make a further announcement shortly.