Vol. 554 No. 5
408 Ms O. Mitchell asked the Minister for Finance his plans to apply for a derogation from the EU allowing motorcycle helmets and other safety clothing to be added to the list of items subject to a lower rate of VAT; and if he will make a statement on the matter. [15959/02]
Article 27 of the Sixth EU VAT Directive provides for the possibility for individual member states to apply to the European Commission to seek a derogation from the provisions of the EU Sixth VAT Directive. This provision only applies where it is proposed to introduce measures for simplifying the procedure for charging VAT or to prevent certain types of tax evasion or avoidance. A derogation would not apply in respect of this request by the Deputy since the request would not be covered by any of the requirements of Article 27.
I am therefore assuming that the Deputy is asking me to make contact with the European Commission requesting them to bring forward a proposal for a reduced VAT rate for motorcycle helmets and other safety clothing. The Deputy will appreciate that the European Commission has the sole right of initiation of European Union legislation and that any such legislation would require the unanimous agreement of all 15 member states.
It is not clear that the Commission would agree to bring forward such a proposal or that the 15 member states would agree to it. In any event, I consider that it is appropriate that VAT on motorcycle helmets and other safety clothing should continue to be standard rated. I have no plans therefore to raise this issue with the Commission.
