andMr. McQuillan asked the Minister for Finance whether the Government have told the EEC that they are prepared to reduce revenue duties at the same rate as the existing members of the EEC; if so, if this means that such duties will have to disappear by 1st January, 1967; and if he will indicate the total loss to the Exchequer.
Ceisteanna—Questions. Oral Answers. - EEC: Reduction of Revenue Duties.
5.
In the course of his statement in Brussels on 18th January, 1962, the Taoiseach said that "in respect of revenue duties we anticipate that we shall be able to match the reductions already made by the member States and to keep pace with them in the future". As the Deputy suggests, this may involve the elimination of such duties by 1st January, 1967.
I should add that under Article 17 of the Treaty of Rome, member States may substitute for revenue duties internal charges on a non-discriminatory basis. No net loss to the Exchequer is therefore anticipated.
Arising out of the Minister's reply which was very indistinct—I may be doing him an injustice in this supplementary but he can clarify the matter—in view of the fact that the Taoiseach stated here in the House that he hoped the rhythm of reductions would extend to 1970 in accordance with the Treaty of Rome, does the Minister consider there is an alteration now and that such a final reduction or removal of tariffs must take place by 1967 instead of 1969?
The Deputy must remember there is a distinction between revenue duties and protective duties——
I concede that.
——and the statement that was made here that we hope to get until 1970 before eliminating protective duties still stands.
That applies only to one?
No. What I said here applies to revenue duties.
As far as revenue duties are concerned, it will be 1967?
They will probably be replaced by protective duties.
Have we commenced negotiations yet?
That is a different matter.
It is a very important thing.
It may be important but it is irrelevant.
The latter part of the Question has not been answered, in which the Minister is asked to indicate the total loss to the Exchequer.
There will be no total loss. The end of my answer points out there need be no total loss.
Would that be the result of purchase tax?
Not necessarily.
The Minister is satisfied there will be no loss to the Exchequer? Could he give any figure?
As I pointed out, revenue duties may be substituted by internal charges on a non-discriminatory basis.
Is there not power to convert revenue duties into protective duties up to December, 1969?
Is it the intention of the Government to change that? That is not very clear in view of what the Taoiseach said last week. Is it the intention of the Government to change revenue duty into protective duty?
What I tried to make clear is that we may have to agree to eliminate revenue duties by 1967 but we are hoping to be able to keep our protective duties until 1970, so that if we have lessened our revenue duties, we may replace them by internal duties which will be the same for both production at home and for imports.
Is there not power to substitute protective duties for revenue duties?
It is the same thing.