asked the Minister for Finance if he will reduce the VAT on schoolbooks and educational requisites to a nominal sum.

20.

asked the Minister for Finance if he intends removing VAT from essential schoolbooks and if he will make a statement on the matter.

21.

asked the Minister for Finance if he will remove VAT from schoolbooks and educational appliances with a view to easing the financial burden on parents.

I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 19, 20 and 21 together.

VAT is charged on a very wide range of goods and services and I regret that I cannot make an exception in this case. I am also influenced in reaching this conclusion by the very serious administrative difficulties which would be involved in confining any VAT relief to educational purchases and by the availability of State-financed schemes for assisting in the purchase of schoolbooks in the case of students from low-income families.

VAT is payable on schoolbooks in all but one other EEC country and on educational requisites in all EEC countries. As I have stated previously in this connection, the Deputies' suggestions would be affected by the constraints of EEC obligations.

Does the Minister recall that in reply to similar questions some months ago he clearly indicated that the primary reason for taking no action in this general context was an EEC directive? Could he say, if it is essential that there be some rate of VAT on schoolbooks, whether he would be willing to review the present rate and reduce it to a purely nominal charge consistent with having some rate on them just above zero?

The Deputy is correct in referring to the EEC constraints which prohibit additional zero-rated goods. One of the problems of introducing a nominal rate as suggested by the Deputy is that this is a further rate to be operated by traders. Already we are assured that the number of rates involved is the maximum they can handle, that they could not handle another rate. There are other problems involved but from an administrative point of view this would present very serious difficulties.

Is not the central issue the attitude of the Government to the price of schoolbooks in a situation where education is compulsory up to certain limits and whether or not the Minister will take the suggestion implicit in these questions as being just a small step to reduce the cost regardless of administrative difficulties?

The Deputy will appreciate as I have indicated that in all of the other EEC countries except one VAT applies to schoolbooks. He will also appreciate that it applied to schoolbooks during the term of the previous Government who no doubt were equally concerned in this matter. I can assure him that the problems involved are not easy to overcome.

Could the Minister say why, in telling us of a number of things that influenced him in reaching his decision, he did not include the decision made by his own party's Ard-Fheis last year that VAT should be removed from school text books?

That is not relevant to the question.

Could the Minister state the amount of VAT applied in other EEC countries?

I am trying to deal with as many questions as possible.

I would appreciate the information as the Minister has it in his brief.

I have the information but I am in the hands of the Chair as to whether I shall give it or whether the Deputy should put down another question.

The Minister may give it today.

Denmark, 20¼ per cent; France, 7 per cent; Belgium, 6 per cent; Germany, 6 per cent; Italy, 6 per cent; Luxembourg, 5 per cent; Netherlands, 4 per cent; UK, zero.

The Minister will admit that the VAT applied to schoolbooks in Ireland is considerably more than what applies in the EEC countries?

Not in all cases; it is less in some.

In how many countries is it less?

The Deputy can do the sum as well as I can. I am being asked to either zero rate or introduce a nominal rate and I have explained why this is not possible.

Could it be at zero rate as in Britain?

I have already explained—I do not think the Deputy was listening—why that is not possible. The real reason is that the Government which he supported agreed to a commitment which would preclude us from doing that.

Is it not a fact that it was a Fianna Fáil Government who introduced VAT on schoolbooks in the first place, just to put the record straight?

In 1972, VAT was introduced under a Fianna Fáil Government in replacement of turnover tax. The VAT introduced was of course on foot of legislation enacted in this House which could be changed in this House at any time. The commitment to which I refer, entered into by the Government supported by Deputy Collins and Deputy O'Connell, was one which cannot be changed in this House.

The rate could be reduced for books, anyway.