Briefing from the Prime Minister’s Spokesman on: Paris, Police Inquiry and Green VAT
Paris
The Prime Minister’s Spokesman (PMS) began by running through three points to come out of the Prime Minister’s meeting with President Sarkozy earlier today. Firstly, the joint committee with the French on counter terrorism whichwill now meet quarterly. Secondly, there would be a joint initiative on the environment with the Chancellor and the French Finance Minister to lobby the European Commission to allow reduced rates of VAT on environmentally friendly goods. And thirdly a joint Franco-British communiqué on Darfur had been issued following this morning’s meetings. David Miliband and Bernard Kouchner, the French Foreign Minister would travel to New York shortly to push for a UN Security Council resolution on Darfur, and for that process to be accelerated. It was agreed by both parties that we should hold open the threat of sanctions if the Sudanese Government did not cooperate, but we would work jointly together with the French on a package of economic support, and the possibility was also raised of the Prime Minister and President Sarkozy visiting Darfur at some point in the future.
Police Inquiry
Asked for a comment on the "cash for honours" inquiry, the PMS replied that the Prime Minister had commented at this morning’s press conference in Paris and there was nothing to add.
Asked that given the Prime Minister had promised a more transparent style of government, would he welcome the publication of the police investigation document that was sent to the CPS, the PMS replied that this was a matter for the police and not one we would be commenting on.
Asked if the Prime Minister had any reaction to the SNP’s comments about the CPS’s decision, the PMS replied that he did not have any comment on this.
Asked if the Prime Minister proposed to put forward any new measures on party funding, the PMS replied that the Prime Minister said this morning that there was already a process of discussion and consultation on party funding through the Hayden-Philips report and that was where we were.
Asked if there would be a former Prime Minister’s resignation honours list, the PMS replied that he had no information on this.
Green VAT
Asked for more details on the green VAT, the PMS replied that this was something that we had been pushing for for a while, and we were very glad that we had French support for this. The Prime Minister, when he was Chancellor, and obviously that continues now he is Prime Minister, was always very keen to ensure that there were carrots as well as sticks in terms of incentivising people to behave in an environmentally friendly way. He always felt frustrated as Chancellor that he was not able to introduce more tax incentives to encourage environmentally friendly measures. One of the reasons for that was because we were constrained under EU law by the range of products on which lower rates of VAT can apply. We were calling for, and we were very pleased that the French were supporting us on this, the list of products that are eligible for lower rates of VAT to be extended to include environmentally friendly products.
Asked if we were talking about lower rates or zero rates, the PMS replied that it could include either, but in principle we were talking lower rates.
Asked if this would apply to roof insulation and other similar products, the PMS replied that it could be roof insulation, or it could be more environmentally friendly electrical goods. There was a whole range of potential products that it could apply to, but this would be part of detailed discussions that would need to follow. On specifics it was best to check with the Treasury
Asked where we were in terms of getting other EU countries involved, the PM replied that we had made a big step forward today in signing up the French.
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