AGENDA FOR THE GERMAN PRESIDENCY

That this House notes with concern the suggestions made by Herr Oskar Lafontaine and certain members of the European Commission that it would be desirable to harmonise corporate tax rates throughout the EC; notes that other fully federal states, such as the USA and Canada, have achieved single markets whilst tolerating widely varying state and provincial corporate tax rates, such as nil in Texas against 9.9 per cent. in Pennsylvania, and 8.9 per cent. in Quebec against 17 per cent. in Manitoba; and urges the Government to resist unnecessary proposals of this nature and to impress upon the Government of the Federal Republic of Germany the desirability of using its presidency of the European Union to focus constructively on matters requiring attention such as reform of the Common Agricultural Policy and the elimination of fraud.