asked the Minister for Finance if he will remove VAT from school textbooks.

10.

asked the Minister for Finance if it is intended to remove Value-Added Tax from school text books and other educational requisites.

I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 9 and 10 together.

Questions of reductions in VAT rates are generally matters for consideration in the budgetary context and the Deputies will be aware that concessions of the kind suggested are not envisaged this year.

I might mention that the suggestions would be affected by the constraints of EEC obligations as well as by practical problems.

Is the Minister aware that his own Ard-Fheis passed a resolution specifically recommending this course of action? Will he pay any attention to the voice of his own party organisation on this matter?

That is a separate question.

I asked the Minister whether he is aware that his own party policy on this matter is apparently one which he is now refusing to implement.

Is the Minister in some difficulty about removing VAT from school books and other educational requisites because of a directive from the EEC? If this Government decide tomorrow to remove VAT from school books could that be done?

We would, I understand, be precluded from removing VAT from school text books under the EEC regulations. I might also add that there is only one other country in the EEC which does not apply VAT to school text books.

Which regulation is that?

The one which precludes us from applying a zero rate to anything.

What is the name of the country where a zero rate of VAT applies to school text books?

The United Kingdom.

Will the Minister explain how the UK can apply a zero rate and we cannot?

The Deputy was not in the House at the time of course but perhaps he will recall that when the previous Government were in office VAT applied to school text books, but a regulation was passed, with the consent of the then Government, within the EEC which precludes the application of zero rates to items not then zero-rated.

Therefore there is no chance at any time in the future that school books will be exempt?

Even if there is a directive precluding the Minister from reducing the rate to zero could he not reduce it to a minimal or nominal figure?

Could the Minister indicate when VAT was first put on schoolbooks?

I think it was when VAT was introduced to replace turnover tax.

In what year was that?

I cannot remember. It was not the last Government that introduced it but the last Government continued it. If they thought it was a very serious matter they might have done something about it, in particular before they agreed to a regulation which precluded the taking of VAT from schoolbooks.

Order.

Was it not the position that the Government which preceded the Coalition did not give high priority to this question?

The Deputy may gauge that by the performance of his colleagues.

I got the impression from the Minister's reply to my supplementary that it was the last Government who introduced VAT on school text books.

If the Deputy got that impression it was a wrong impression.

Was this tax not introduced by the previous Fianna Fáil administration?

Our predecessors in Government, the Coalition, comprised of Labour and Fine Gael, maintained the VAT on schoolbooks and it was they who agreed to a regulation in the EEC which precluded these books from being zero rated for the purpose of this tax.

But the tax was introduced by Fianna Fáil, a fact of which the Minister omitted to advise me. We want the whole truth.

Is it the position that anything that is zero rated now cannot be subject to VAT in the future?

No.

So that the Minister could reimpose VAT on foodstuffs, for example?

I do not find anything in this question relating to food but if that is what the Deputy wants to ask about, why has he not put down a question?

There is no need for that now. The Minister has given me the answer.

Does the Minister recall telling us that it was not possible, because of EEC regulations, to remove VAT on food although this is what he then proceeded to do?

No. That was never said and I challenge the Deputy to produce evidence to support this false statement.

Order. I am calling Question No. 11. Deputy Keating should resume his seat.