Dáil Éireann debate -
Tuesday, 30 Sep 1997

Vol. 480 No. 6

Written Answers - Duty Free Sales.

Noel Ahern

Question:

146 Mr. N. Ahern asked the Minister for Public Enterprise the action, if any, her Department is taking to retain duty-free sales to passengers travelling within the EU; if her attention has been drawn to the importance of this to many Irish employees, particularly at Dublin Airport; and the plan of action, if any, she has to win concessions from Brussels; and if she will make a statement on the matter. [14980/97]

Minister for Public Enterprise (Mrs. O'Rourke):

The Programme for Government, under the Transport heading, says that key priorities will include resistance to EU plans to abolish duty free shopping after June 1999.

I am very concerned about the economic and social consequences of the scheduled abolition of duty free sales for Ireland, in particular the effects on employment and access costs for tourism and trade, and I am taking an active role in the campaign to raise awareness of the duty free issue.

At the Duty Free in Europe Conference in Brussels on 24 September 1997 I highlighted the Irish Government's position and I called on the EU Commission to conduct an EU-wide study into the economic and social effects on Europe of ending duty free.

I believe the results of such a study would pave the way for an open-ended derogation, which can be reviewed as circumstances change.

At their Council meeting in June this year, Transport Ministers supported the concept of this EU-wide study. I should point out, however, that reversal of the scheduled abolition is primarily a matter for Finance Ministers and requires a proposal from the EU Commission and unanimous agreement of the Council of Finance Ministers.

My colleague, the Minister for Finance has commissioned a study to establish the impact on Irish employment, transport and Government revenues from the abolition of intra-EU duty free. This study, which is expected to be completed by the end of the year, should provide a useful basis for future discussions.