Taxation Policies (Hansard, 11 July 1996)

§ Sir Teddy Taylor
To ask the Chancellor of the Exchequer if he will place in the Library the report of the EU monetary committee on United Kingdom policies in relation to the qualification of economic and monetary union membership. [36633]

§ Mr. Kenneth Clarke
The EU monetary committee has participated in discussions on excessive deficits as required by article 104c of the treaty establishing the European Community. It has produced no reports on UK taxation policies which are entirely the responsibility of the British Government and do not fall within Community competence. The ECOFIN Council of 8 July agreed recommendations for member states with excessive deficits, including on the United Kingdom. These recommendations are not binding on the Government and are merely advisory. Once they are adopted, the recommendation on the UK will be made available to Parliament as usual through the normal scrutiny channels.

§ Sir Teddy Taylor
To ask the Chancellor of the Exchequer if he will make a statement on the extent to which the United Kingdom is obliged to(a) consider and (b) respond to the recommendations of the EU monetary committee on United Kingdom tax policy. [36635]

§ Mr. Clarke
The EU monetary committee has produced no reports and made no recommendations on UK taxation policies.

§ Sir Teddy Taylor
To ask the Chancellor of the Exchequer if he will make a statement on the origin, responsibilities and role of the EU monetary committee. [36632]

§ Mr. Clarke
Article 109c(1) of the EC treaty provides for the establishment of a monetary committee with advisory status in order to promote co-ordination of the policies of member states to the full extent needed for the functioning of the internal market. It states that the committee's tasks include: to keep under review the monetary and financial situation of the member states and of the Community and the general payments system of the member states and to report regularly to the Council and the Commission, to deliver opinions at the request of the Council or of the Commission or on its own initiative and to contribute to the preparation of the work of the Council in areas such as economic and financial policy.

§ Sir Teddy Taylor
To ask the Chancellor of the Exchequer what is his policy in respect of each recommendation contained in the report of the EU monetary committee on tax policy. [36634]

§ Mr. Clarke
The Government agree with the committee's recommendation that the United Kingdom adhere to its existing policy of continued fiscal consolidation and that tight control of expenditure will continue to be necessary.