asked the Minister for Finance the cost to the Exchequer of the removal of VAT from provincial newspapers; and when the Government intend to do so.

The revenue yield from VAT on provincial newspapers is of the order of £400,000 a year. The removal of VAT from provincial newspapers would be attended by considerable technical and other difficulties and would also be affected by EEC constraints. If VAT were removed—and even if none of the benefit were passed on to the public—not all of the £400,000 would accrue to the benefit of the publishers of the newspapers as some of it would go to the wholesalers and retailers in the chain of distribution. The Government is at present examining the representations made by provincial newspapers to determine the nature and extent of assistance that may be warranted for these newspapers.

That means that VAT will not be removed from newspapers.

It means that we are examining and will almost certainly take action to meet the requirements of the provincial newspapers—a thing which the Deputy and his colleagues consistently failed to do.

May I take it that the EEC regulations forbid the Minister to take away VAT?

I did not say that. I said that the removal of VAT from provincial newspapers would be attended by considerable technical and other difficulties and would also be affected by EEC constraints.

In what way would it be affected by EEC constraints?

We would not be allowed to remove VAT completely.

Does the Minister intend to reduce VAT on provincial newspapers?

I know it is not in order to repeat myself but in case the Deputy did not hear me I said that we are examining, and will I hope, fairly shortly, implement arrangements which will meet the requirements of the provincial newspapers.

I heard quite perfectly. Will VAT on provincial newspapers be reduced?

I have already replied to the question as fully as I can.

How can the Minister reconcile his reply with the categorical assurances given by him and the Taoiseach to the provincial newspaper proprietors that VAT would be abolished in relation to provincial newspapers?

I am afraid the Deputy is engaging in his usual arm-chancing. Could the Deputy indicate to the House one reference that would justify the false assertion he has just made?

How can the Minister reconcile his reply with the assurances given?

We did not give such assurances.

The Minister is more than aware of the absolute assurances given by him and the Taoiseach at private meetings in provincial towns.

That is a complete and utter falsehood. It is an assertion that the Deputy ought not to make without proof. I never had private meetings with the Provincial Newspapers' Association in any town.

I challenge the Deputy if he expects anyone to believe one word which he has said to produce one scintilla of evidence in support of his allegation.

Question No. 23.