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Lib Dem MEPs scupper moves to add penny to cost of stamps
December 17, 2003 12:00 AM
Wallis: To ensure universal deliveries, there has to be a postal monopoly allowed to cross-subsidise the cost of long country lanes from the savings on city doorsteps.
An EU Commission move that could have added at least a penny to the cost of first and second class stamps was scuppered in the European Parliament today thanks to the key votes of Liberal Democrat MEPs, including that of local Lib Dem Euro MP, Diana Wallis.
The 11 British Liberal Democrats made the difference between winning and losing when the parliament voted down a proposal to insist on member states levying at least 5% VAT on postal services. The vote was 270 against and 253 in favour.
Diana Wallis MEP said, 'This was a classic example of the Commission trying to harmonise for harmonisation's sake, and I am delighted that they got short shrift. The Commission argues that there should be VAT on stamps because private delivery services have to pay VAT, but no private deliverers undertake to send letters to every croft in Caithness and bothy on the Isle of Wight. The fair competition argument is nonsense'.
'To ensure universal deliveries, there has to be a postal monopoly allowed to cross-subsidise the cost of long country lanes from the savings on city doorsteps. To tax everyone is just daft' said Diana Wallis who speaks for her party on Internal Market matters.
'The Parliament voted to send the proposal back to the Commission, and I am confident that the Council of Ministers will do the same. There is no reason to undertake this sort of tidy-minded harmonisation at European level. Decisions like this should be left to the nation states'.
'There is now no risk of this going through. The Government has a veto on all tax matters, and it should use it on this'.
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