Labour MEP Mr Proinsias De Rossa criticised the Government yesterday over its failure to respond to an EU proposal to levy VAT on postal stamps, writes Arthur Beesley, Political Correspondent.

Mr De Rossa said he had been informed by the European Commission, in written response to a question, that it received "no formal responses" from the Government on a proposal in 2000 to apply VAT to postal services.

The measure has been formally proposed by the Commission in the form of a draft Directive now being examined by the EU finance ministers and the European parliament.

Mr De Rossa said: "The whole point of a Commission communication is to encourage debate across Europe. . . It is an appalling dereliction of their duty and deeply worrying that the Government should have failed to take part in this debate."