asked the Minister for Finance the total amount of VAT collected on (a) national newspapers and (b) provincial newspapers during each of the past five financial years.

Returns made by tax payers for value-added tax purposes give only the total turnover liable at different tax rates and the appropriate tax. A return made by a newsagent does not distinguish between sales of newspapers and sales of other goods liable at the same rate. It is not possible, therefore, to state the tax receipts from national and provincial newspapers.

Has the Minister any figures to cover national and provincial newspapers? He must have some estimate of the amount of money paid in VAT by the newspaper industry.

From the VAT returns this information is not available. The estimates of the Revenue Commissioners which are based on such information as is available about newspaper circulation indicates that VAT on newspapers of all kinds, provincial, national and imported, is £2.8 million, and £1 million on magazines, many of which are classified as newspapers.

Is that for the final year mentioned in my question?

Yes.

Has the Minister an estimated figure for the first year? There are five years covered in the question.

The figure given is the annual estimated return of VAT on newspapers.

Is the Minister aware that in an earlier reply today it was shown that the cost of newsprint imports for use in national and provincial newspapers in 1971 was £3 million and in 1975 for a similar amount of newsprint it was close on £7 million? Would the Minister not agree that there is a very good case for exempting the national and provincial newspaper industries both of which are now in serious difficulties, from VAT?

First, I do not accept that the difficulties of any business are attributable to VAT which is a tax paid by the purchaser or consumer, not by the industry itself. Secondly, it is wrong to assume that if VAT is removed an industry will benefit. If VAT is removed it is the consumer who must benefit, not the producer of the goods. Therefore, it is an empty argument to suggest that VAT is the cause of difficulties. It is not a tax borne by an industry; it is a tax paid by the consumer and further, it is not open to this country to remove VAT from any commodity which is produced in Ireland without giving a similar concession to a similar commodity coming in from abroad. Any relief would be an omnibus relief which would apply to newspapers other than Irish-produced newspapers.

Surely the Minister can deal with imports of newspapers in a different way from the manner in which he deals with the newspaper industry here? Surely he must agree that where VAT is either added or increased substantially the newspaper industry must pass it on and that the industry will suffer very substantially as a result? They have suffered by increasing the cost of their newspapers to the public.

No, this is not established. The pattern of purchase can be quite different——

Would the Minister not agree that the newspaper industry here at all levels is in very serious difficulties at present?

I am not in a position to comment on that.