asked the Minister for Finance if he will consider a reduction in the VAT rate on newspapers and periodicals in view of the beneficial effect of zero VAT rating on books.

This is one of the issues which I shall consider in the course of preparations for the 1984 budget. I should mention, however, that in present circumstances there is limited scope for providing the type of relief requested. In that context it should be noted that while the cost of the existing zero rating for books, referred to by the Deputy, is estimated at £6 million for 1984, the cost of a similar regime for newspapers and periodicals would be about £28 million; a reduction to the 5 per cent rate would cost about £22 million.