Modifications of Schedule 5 to Value Added Tax Act 1983

Part of Orders of the Day — Finance (No. 2) Bill – in the House of Commons at 11:45 pm on 30 April 1984.

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Photo of Mr Peter Griffiths Mr Peter Griffiths , Portsmouth North 11:45, 30 April 1984

I was pleased to see the amendments grouped together as the grouping solves a problem for me. I want to highlight a problem with the Bill and the grouping enables me to know that I am speaking at the right time.

I support the main thrust of the amendments but not as broadly as the hon. Member for Birmingham, Perry Barr (Mr. Rooker). I wish to make a plea on behalf of mobile caterers who operate as part of travelling fairs, which are part of our traditional life, and suffer because of the loss of sites and high transportation costs. Hot food at a travelling fair is often sold not as a meal but as part of the entertainment. Chips and hot doughnuts, for example, are not sold in competition with the rest of the catering industry—not even in competition with the take-away food industry. Such operations are often run on a small scale. Operators of entertainments in fairs are often part of small family businesses and the sale of hot food is frequently ancillary to rides or competitive amusements.

I do not know how far the Opposition intend to press the amendments but I hope that my right hon. and learned Friend will feel able to give me an assurance that he will see how, if the amendments are not pressed or carried, the Bill will affect travelling fairs and their operators who make a valuable contribution to a traditional way of life that we would regret being pushed out of existence because of increased costs.

Another reason why VAT should not be extended to this area is that such small-scale operations are usually run by families, and the sheer bureaucracy of book-keeping and return-making would not be cost-efficient. It would cause a nuisance to the fairground operators and would not produce much revenue for the Treasury. I hope that my right hon. and learned Friend will monitor the way in which these proposals will affect showmen in travelling fairs.