Vol. 476 No. 3
44 Mr. S. Brennan asked the Minister for Finance the action, if any, he intends to take to prevent the abolition of Ireland's £100 million duty-free business; and if he will estimate the employment implications of the loss of duty free. [7078/97]
The provisions of EU Directives 91/680/EEC, agreed as part of the tax measures establishing the EU Single Market, authorise the continuation, until 30 June 1999, of duty free shopping facilities for intra-Community travellers. In the absence of a proposal from the Commission and an agreement at Council, duty free sales for intra-Community travellers will cease on 30 June 1999.
There are no plans to terminate duty free or tax free sales for travellers to non-EU destinations in 1999. That portion of the duty free business will remain and, for certain airports, particularly Shannon Airport, the non-EU travellers are a very important source of revenue. Other State airports also handle traffic to and from non-EU locations.
It should be noted that the original date on which it was proposed that duty free for intra-Community travellers be abolished was 31 December 1992, but the extension — to 30 June 1999 — was granted to allow operators, including Aer Rianta, time to diversify their business. I know that Aer Rianta has taken many steps to diversify their activities, including the operation of duty free shops in, for example, Russia and in the Middle and Far East.
While the concerns of those engaged in the duty free business are appreciated, I hope any adverse employment implications may be kept to the minimum.
