Business of the House

Baroness Ritchie of Downpatrick Excerpts

Thursday 19th December 2013 Commons Chamber

[Mr Lansley]

My hon. Friend knows that the Government share his concerns about the difficulties facing Palestinian olive growers. This is a particularly sensitive issue, given that olive trees are a national symbol and the sole source of income for many Palestinian farmers. We continue to express our concerns to the Israeli Government about this and about the destruction and damage to Palestinian property, including olive trees, whether it is by the authorities or by extremist settlers. The context is, of course, the enduring tragedy of the Israeli-Palestinian conflict, and we are doing everything we can as a Government to support efforts, including by the US Government, to achieve a lasting two-state solution.

[Ms Margaret Ritchie (South Down) (SDLP)]

May I wish you, Mr Speaker, a merry Christmas?

May we have a debate on the impact of VAT on tourism products and the local economy? In Northern Ireland, VAT on tourism is 20%. We have a land border with the Republic of Ireland, where VAT on tourism has continued to be 9%. That has placed us at an unfair competitive disadvantage.

[Mr Lansley]

The hon. Lady will know that my right hon. Friends the Chancellor and the Secretary of State for Northern Ireland are very aware of the importance of the tax relationship between Northern Ireland and the Republic of Ireland. I will of course raise these issues with them. She will understand how difficult it is in the EU context ever to reduce VAT rates, but that does not mean that that is the only potential source of tax competition.