Rt Hon Lord Lilley

    The Prime Minister: I am not entirely sure what impact that will have on the Gibraltar economy. [Interruption.] I know that we are supposed to be omniscient. If there are any implications, perhaps I can write to the hon. Gentleman and explain them. He should understand that the tax reform that is being talked about is not mandatory. It is simply to deal with certain circumstances—

    strong>Mr. Peter Lilley (Hitchin and Harpenden): It is mandatory.

    The Prime Minister: Perhaps the shadow Chancellor, if that is what he is, would listen for a moment. It is not a mandatory reform, and it is supposed to deal with the situation in which, for example, there could be discriminatory tax practices that harm investment. British companies on the whole are keen to have it, but it is simply permissive, not mandatory. I do not know offhand whether there will be any impact on Gibraltar, but I will let the hon. Gentleman know if there is any problem.