Vol. 514 No. 3
98 Mr. Callely asked the Minister for Public Enterprise the impact the loss of duty free activities has made to the financial operation of airports; if her attention was drawn to the likely impact prior to the signing of the agreement to abolish duty free sales at EU level; and if she will make a statement on the matter. [4076/00]
I am advised by Aer Rianta that it estimates that the loss of income to the three State airports arising from the abolition of intra EU duty free on 1 July last is approximately £30 million per annum. The actual loss of income will become clearer during the course of this year. The privately owned regional airports have also been hit with a loss of revenue which is among the reasons for the significant ongoing Exchequer support schemes for those airports.
Prior to the adoption, in the early 1990s, of the EU directives which provided for the abolition of duty free purchases by intra-EU travellers, both the Department of Finance and the then Department of Tourism and Transport were aware of the potential implications. In addition, the Department of Finance commissioned a report in 1998 on the impact of the abolition of duty free sales in Ireland.
