Dáil Éireann debate -
Wednesday, 19 Nov 1997

Vol. 483 No. 1

Written Answers. - Duty Free Sales.

Eamon Gilmore

Question:

40 Mr. Gilmore asked the Minister for Finance the current position regarding discussions with the EU on proposals to abolish duty free facilities; the steps, if any, he will take to ensure that this facility is preserved in view of the possible consequences of its abolition for the cost of travel and the tourism industry; and if he will make a statement on the matter. [19663/97]

Minister for Finance (Mr. McCreevy)

As has been pointed out to this House before, the abolition of duty free sales for intra-EU travel is not proposed. The decision has already been taken and enacted into Community law. Ireland continues to raise this matter at various EU Council meetings, but there are no proposals to be discussed.

This decision to end duty free facilities for intra-community travel can only be reversed by unanimous agreement at Council, following a proposal from the Commission. The Commission continue to repeat that they are not prepared to put any such proposals to the Council for any extension beyond 30 June 1999. In the absence of a proposal from the Commission, duty free sales will end.

However, following concern on the possible impact — which has been spearheaded by Ireland — the Commission is being pressed to conduct an EU-wide study into the consequence of implementing this decision that has already been taken. In order to persuade the Commission to put any new proposals to the Council it will be necessary to convince them of the negative impact the decision will have. It will also be necessary to have widespread support from other member states. This will require an EU-wide study into the consequences of ending duty free sales.

As well as continuing to press for an EU-wide study to be undertaken, I have also commissioned a study by consultants to assess the consequences for Ireland of ending the duty free facility.