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Special Committee on the Finance Bill, 1992 debate -
Tuesday, 12 May 1992

SECTION 98.

Question proposed: "That section 98 stand part of the Bill."

The section states that "Community" means the territory of the Community as difined in the establishing Treaty (which I presume is the Treaty of Rome) Article 227 thereof except for certain national territories. These are, in the case of Germany the island of Heligoland and the territory of B�singen, in the case of Italy Livigno, Campione d'Italia and the Italian waters of Lake Lugano, in the case of Spain, the Canary Islands, Ceuta and Melilla and in the case of France the overseas Departments of the Republic.

This is taken straight from the Council Directive.

I know that but how did these national governments succeed in obtaining exemptions for part of their national territorites from a common Directive which has extensive imposition powers in the case of all excises including on hydrocarbons. Are the Lakes of Killarney in there as well as the Lake of Lugano? I know it is funny at one level but it is interesting that four countries have got exemptions and I wonder on what basis? What are they up to and if it is a profitable scam why are we not in on it?

The small areas included are disputed territories, Deputy Quinn suggests.

The main ones are disputed territories between different countries such as Switzerland in Lake Lugano's case as far as I understand. The Spaniards have always maintained a separate regime for the Canary Islands and other offshore islands. It is a postcolonial legacy.

What about the Germans?

Is Heligoland not the subject of a dispute between Germany and Sweden or Germany and Denmark?

I think this must have originated in the Treaty of Rome since it went into the Directive. I doubt that negotiations of that level went on last year.

We could exclude Rockall.

I am sure there would be no objection.

The Community is described as the territory "defined by the Treaty establishing the European Community and in particular Article 227 thereof except for the following national territories", which suggests that those territories were not included in the Treaty of Rome.

Question put and agreed to.
Section 99 agreed to.
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