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Dáil Éireann debate -
Wednesday, 19 May 1999

Vol. 505 No. 1

Other Questions. - Duty Free Sales.

Jack Wall

Question:

17 Mr. Wall asked the Minister for Public Enterprise the position in relation to the campaign to retain duty free sales; and if she will make a statement on the matter. [13000/99]

At ECOFIN on 15 March, Germany, as the current President of the European Union, proposed a two and a half year extension for the retention of duty free facilities. However, the proposal failed to obtain unanimous support and no clear position was taken. It was then hoped that the Heads of State meeting in Berlin on 24 and 25 March would provide an opportunity for further discussion. However, this did not happen.

The French Minister for Finance will raise the duty free issue at the ECOFIN meeting on 25 May. In addition, the German Chancellor's office has indicated Germany's intention to follow through on the issue at the next EU summit meeting on 3 June with a view to persuading the European Commission to reconsider its position and come forward with a legislative proposal for a final, one-time extension of intra-EU duty free sales. Germany, as the current President of the European Union, remains the key to obtaining concessions at this late stage.

Does the Minister agree that the Government of which she was a member with collective Cabinet responsibility in 1991 failed to send a Minister to the crucial meeting where the decision was made to abolish duty free sales? Does she agree that the Irish Ambassador to the EU at that time received instructions from the Government to support the abolition of duty free sales? Will she agree this is the reason for the current position? The then Government had a veto which would have ensured the continuation of duty free sales, but it failed to act. The Minister and the Government are late converts in terms of support for this issue. Will the Minister confirm that there is no realistic prospect of reversing this decision? She knows a unanimous decision is not possible now.

I have no idea if a unanimous decision will be secured but I think we will get it. The French have placed the matter on the agenda for the meeting next Tuesday.

They do not have a hope.

The Germans will follow up the matter at the next EU summit under its presidency.

They do not matter.

When I spoke about the fare increases Deputy Stagg granted in 1994, he said we should forget the past.

That does not matter. This relates to 1991. The Minister was directly involved in this fateful decision in 1991.

I was not involved in it.

The Minister was involved.

It is called collective Cabinet responsibility.

I ask Deputies not to engage in this crossfire.

It is interesting that the Deputy does not want to talk about his own decisions in 1994. Why does he not want to talk about them?

The Minister can do so if she likes, but she should deal with 1991.

The Deputy may ask another supplementary if sufficient time is available.

The Deputy does not want to deal with 1994 when he granted fare increases but he wants me to talk about events in 1991. The Deputy has developed an interesting position for himself.

The Minister did not answer the question.

The Minister said the Commission must propose any change if duty free sales are to be retained. Is she aware that Mr. Jacques Santer said that, because the Commission has resigned and there is currently an acting Commission, it is not empowered to make such a proposal? This matter is running into the sand fast.

In June.

It would be better to be honest with people than to pretend that this campaign, which was always based on quicksand, is getting somewhere. It is going nowhere.

I have no control over the French who placed this matter on the agenda for the meeting next Tuesday. They know their business.

It is an acting Commission.

That is the case but the French placed the matter on the agenda for next Tuesday's meeting.

That is only a meeting of ECOFIN. There will not be unanimous agreement there.

The Minister without interruption.

The French tabled the matter for the meeting next Tuesday. As President of the EU, Germany said it will raise the matter at the next Heads of State meeting. They know their business. It is not for me to tell them that they should not raise it.

Will the Minister confirm that, as a Minister in 1991, she shared Cabinet responsibility for the decision of the Government to support a European decision to abolish duty free sales although Ireland had a veto?

I will not confirm it.

I do not have the relevant details. The Deputy mentioned the instructions given to the ambassador.

The Minister knows well what happened. Do not tell me she is losing her memory like the Taoiseach. Amnesia is becoming infectious on that side of the House. They cannot remember who they met or where they were.

The Minister without interruption.

The Deputy could not remember whether he was in Dublin Airport or a pub in Wexford.

I always knew. The Fianna Fáil Party twisted it.

I call Question No. 18.

The Deputy has amnesia.

The Minister is blustering.

The Deputy cannot remember where he was.

I remind Members that under new Standing Orders six minutes are allocated to each question. The Chair is obliged to ensure we stay within that time but I cannot do that if there are many interruptions.

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