My hon. Friend will know that my hon. Friend the Minister of State, Treasury, has taken the lead in the discussions. The Irish rate of VAT is safe because it was in place before the cut-off date in the Community. The French rate of VAT may be challenged and may have to rise. We cannot lower the rate of VAT under Community rules, but we can try to find a way to assist the industry. My hon. Friend the Minister of State, Treasury, is conducting discussions with the industry on the basis of a proposal for a flat rate agricultural tax which would replace the 17·5 per cent. VAT. The discussions are close to a conclusion and I understand that my hon. Friend will shortly be writing to the industry to clear up some of the remaining points, which will isolate the relatively few issues to be settled.