Ruairí Quinn
Question:18 Mr. Quinn asked the Minister for Finance if he will outline his recent efforts to have the decision to abolish the duty free industry reversed; and if he will make a statement on the matter. [6352/98]
Written Answers - Duty Free Sales.
Nora Owen
Question:24 Mrs. Owen asked the Minister for Finance the steps, if any, he intends taking at ECOFIN to seek the reversal of the 1991 EU decision to abolish duty free; and if he will make a statement on the matter. [9595/98]
I propose to take Questions Nos. 18 and 24 together.
The initiative in relation to having the decision to abolish duty free sales overturned rests with the EU Commission. So far, the Commission has indicated that it does not intend to bring forward proposals — which would require unanimous agreement at Council — to reverse the decision which has been enacted into European law. As I mentioned in the Dáil debate on this matter on 10 February 1998, Ireland has been to the forefront of the campaign to have the decision reversed but without much support from our European partners at ECOFIN. Other states have left the running to us.
I received the report on the impact of abolition of duty and tax-free sales for EU travel in 1999, commissioned by my Department and undertaken by KPMG Managing Consulting at the end of March. This is being circulated to ECOFIN Ministers for their attention. The results of this study are important and any presentation of its finding to ECOFIN may help in obtaining support for the call for a broader analysis by the
Commission. I intend to have the matter discussed at ECOFIN on 19 May, with a view to advancing the debate. I will press the Irish case as appropriate.
However, it should be noted that, following the informal ECOFIN at York in March, the Chancellor of the Exchequer indicated he does not consider it possible to achieve unanimity at ECOFIN on duty free in the light of the discussions to date.