asked the Minister for Tourism and Transport if his Department are involved in the campaign to retain Irish airport duty free shops which are in danger of being outlawed under EC open market rules.
Written Answers. - Duty Free Shops.
26.
The question of the abolition of duty free sales within the European Community arises in the context of EC harmonisation of indirect tax rates and the completion of the internal market and is therefore a matter primarily for the Minister for Finance.
Total revenue earned by Aer Rianta from the duty free shops at the State airports in 1987 amounted to nearly £30 million. Of this up to £18 million was generated from sales to passengers travelling within the European Community. The loss of this revenue would be a serious matter for Aer Rianta. The major Irish air and sea carriers are also involved in duty free sales and would be affected by the abolition of duty free sales.
Aer Rianta, the Irish air and sea carriers and other Irish companies involved in duty free sales as suppliers have formed a Duty Free Federation of Ireland and have been lobbying strongly for the retention of duty free sales within the European Community. I completely support their efforts in this regard. I can assure the Deputy that I have made the Minister for Finance fully aware of the implications for the State companies under my aegis of the abolition of duty free sales within the Community.