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Dáil Éireann díospóireacht -
Thursday, 14 Dec 1978

Vol. 310 No. 9

Ceisteanna—Questions. Oral Answers. - Duty-Free Facilities.

1.

asked the Minister for Finance the authority under which duty-free facilities are provided by this country's sea and air transport operators.

The authority under which duty-free facilities are provided in respect of sea transport is section 126 of the Customs Consolidation Act, 1876. This provision is applied to air transport by Article 25 of the Customs and Excise (Aircraft) Regulations, 1964.

Does this cover air transport only?

No. Sea transport is covered by the 1876 Act and that is applied to air transport by Article 25 of the Customs and Excise (Aircraft) Regulations, 1964.

What case must be made in order to be considered for this facility? In what circumstances may such be granted? I know the cases where it has been granted. Are there any criteria which must guide the Minister and his Department in providing this facility?

I cannot give the Deputy the information which I think he is seeking because I have not the sections in front of me. I imagine the Deputy is aware of the fact that in regard to certain changes which were made relatively recently there are certain criteria laid down, one of which is that it has to be agreed between the two countries concerned. I do not have the information which the Deputy is seeking about the statutory criteria.

Question No. 2.

I would ask the Minister——

This does not justify a lot of supplementary questions.

I did not suggest that.

I am stating it.

I am merely asking whether, in view of the fact that it means quite a considerable income to the operating companies, there is any way in which the Minister can ensure that the profits made are used for the relief of the long-suffering public who travel on these various modes of conveyance.

With deference to the Chair, I would suggest that is a separate question.

2.

asked the Minister for Finance the estimated amount of revenue foregone in respect of duty-free sales by this country's sea and air transport operators, for the latest yearly period for which figures are available.

I assume the Deputy has in mind duty-free sales on all sea and air routes into this country. It is estimated that, in the year to 30 September 1978, revenue of the order of £8 million was foregone in respect of such duty-free sales.

I take it that this £8 million should be taken into account in any costing of fares, as well as any other ongoing increases in costs which have been held to justify the alarming fare increases in recent times.

I have two observations on that. Clearly the argument is open to anyone to make who wishes to do so; whether it is accepted is another matter. The other observation relates to a point which is not quite clear in my reply. The figure includes revenue foregone in respect of sales at duty-free shops.

These facilities are allegedly sought and granted for the benefit of the public. Is there any method whereby the profit taken by the operators is kept within a reasonable margin which does not move up near to supermarket prices, as is happening at present?

That is a separate question.

That is not a function which comes within my competence.

It is a racket.

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