Dáil Éireann debate -
Wednesday, 28 Jan 1998

Vol. 486 No. 1

Written Answers. - Duty Free Sales.

Michael Noonan

Question:

62 Mr. Noonan asked the Minister for Finance the effort, if any, he has made to put the issue of the abolition of duty free sales on the Ecofin agenda in the course of the United Kingdom's Presidency of the EU; and if he will make a statement on the matter. [1904/98]

Minister for Finance (Mr. McCreevy):

Ireland's position on the future of the duty free sales is well known to the Commission and our partners in ECOFIN. It has also been raised by Irish ministers and officials on many occasions, including by the Taoiseach at the special European summit last year.

As has been explained before in this House, the decisions on this matter were taken some considerable time ago. The Council of Ministers decided unanimously back in 1991 to abolish duty free sales for travellers within the EU, as part of the taxation and excise measures to make the Single Market a reality. A seven and a half year transitional period — up to 30 June 1999 — was granted for duty free shop operators and suppliers. The Commission view is that this was sufficient, as duty free sales are an anomaly within the Single Market.

There is no proposal from the EU Commission before ECOFIN at present to provide the basis for a discussion at ECOFIN. Indeed, the Commission has on several occasions refused to come forward with any proposal to extend the period of application of duty free sales to travellers within the Single Market.

In the lead-in to the UK's Presidency my officials have discussed with the UK its priorities while it has the Chair of the ECOFIN Council of Ministers. These will necessarily concentrate on issues where decisions are required and where proposals are before the Council. During these discussions the importance to Ireland of the duty free issue was pointed out. However, I have to report from these discussions and judging from a reply in the UK Parliament in December, that the UK would not, at present, appear to see the future of duty free as a priority issue in their Presidency.

When the special economic study of the impact of the ending of duty free that Ireland is undertaking is completed, I will consider further what efforts can be made in relation to this topic and I will continue to keep the issue of the future of duty free on the political agenda.

I need hardly remind this House that any decision to change the decision to end duty free facilities for intra-EU travel will require a proposal and the unanimous approval of all our partners. In this subject the Irish have made the running so far but there is little evidence of any wider support at ECOFIN.