Vol. 498 No. 6
48 Mr. Gilmore asked the Minister for Finance the latest discussions he has had with other EU Ministers regarding the desirability of retaining duty free sales for travellers within the EU; the further initiatives, if any, he plans in this regard; and if he will make a statement on the matter. [28028/98]
As I have informed the House on a number of occasions, at my specific request, the proposed abolition of duty free sales was placed on the agenda for the ECOFIN Council meeting on 19 May 1998. While some member states were broadly supportive of my request, it was not possible to get the EU Commission to agree to undertake an EU wide study into the consequences of the abolition of duty free sales. On 2 November 1998, I wrote to a number of my ECOFIN colleagues to say that, should the issue be raised again, we would appreciate their co-operation and assistance in handling it at Council. I again raised the question of duty free at ECOFIN on 2 December 1998 and supported retention beyond June 1999.
The issue was discussed at some length at the Vienna summit last weekend. At the summit, the European Council asked the Commission and the Finance Ministers to examine, by March 1999, the problems which could arise with regard to employment should duty free sales be abolished, and to address, on the basis of proposals from the Commission, possible means of tackling these problems, including the possibility of a limited extension of the transition arrangements.
I am hopeful that further progress may be made in this issue during the forthcoming German Presidency.
