Vol. 498 No. 6
97 Mr. Noonan asked the Minister for Finance the progress, if any, made to reverse the decision to abolish duty free sales; the international meetings, if any, planned either by himself or his officials to discuss a deferment of the decision; and if he will make a statement on the matter. [28070/98]
As the Deputy is no doubt aware, Ireland has long been supportive of the retention of duty free sales and we have raised the issue at Council and with ECOFIN colleagues on many occasions.
The House will also be aware, that the initiative in relation to having the decision to abolish duty free sales for intra-community travellers post 30 June 1999 overturned rests with the EU Commission, as a Commission proposal would be needed for any change from decisions already made.
As I have informed the House previously, 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 it at ECOFIN on 2 December 1998 and supported retention beyond June 1999.
The Deputy may also be aware, that 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 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.
This was very welcome news and I am hopeful that further progress may be made in the issue during the forthcoming German Presidency.
