asked the Minister for Finance if he has sought permission from the EC to prohibit travellers' allowances for persons whose journeys are of less than 48 hours duration; and if he will make a statement on the matter.
60.
Written Answers. - Travellers' Allowances.
15.
asked the Minister for Finance whether the changes in the duty-free regulations on the Border have been accepted by the EC; and if he will make a statement on the matter.
I propose to take Questions Nos. 15 and 60 together.
In the context of a range of measures announced on budget day, 31 March 1987, to deal with our present economic and fiscal problems, the Government acted to define a traveller for the purposes of European Communities Directive 69/169, which governs travellers' allowances, as a person who is outside the jurisdiction for a period of at least forty-eight hours prior to his or her arrival in the State. The measure which came into operation on 1 April 1987, was given statutory effect through regulations made by me under the European Communities Act, 1972. The question of permission from the EC Commission did not arise. However, on my directions, a written communication was made to the EC Commission on budget day by the Irish Ambassador to the EC which provided a full description of the measure taken by the Government and the reasons for it.
As is well known, the purpose of this step was to deal with the gross distortion of trade which had developed over a number of years as a result of the abuse of travellers' allowances. Although the measure has been successful in limiting shopping trips to the North from distant parts of the country for the sole purpose of availing of travellers' allowances, I am conscious that a problem remains in the border-zone itself which is still causing serious loss of trade. The Government are satisfied that the measure taken is in accordance with our obligations under the EEC Treaty.