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Dáil Éireann díospóireacht -
Wednesday, 1 Oct 1997

Vol. 480 No. 7

Written Answers. - Duty Free Sales.

Brian O'Shea

Ceist:

25 Mr. O'Shea asked the Minister for Public Enterprise the action, if any, she proposes to take to prevent the proposed ending of duty-free services at airports and in transit in view of the reduction in trade and the loss of jobs which would be involved; and if she will make a statement on the matter. [14941/97]

Nora Owen

Ceist:

61 Mrs. Owen asked the Minister for Public Enterprise the action, if any, she is taking to protect the jobs at Dublin, Cork and Shannon airports as a result of the pending end to duty-free sales; and if she will give details of her role in seeking to overturn the decision to end duty-free sales. [14904/97]

Joe Higgins

Ceist:

62 Mr. Higgins (Dublin West) asked the Minister for Public Enterprise if she will give an assessment of the effects on jobs, tourism, and the aviation and shipping industries if duty-free shopping within the EU is abolished on 30 June 1999. [14909/97]

Liz McManus

Ceist:

67 Ms McManus asked the Minister for Public Enterprise the potential implications for the cost of airline travel arising from the proposed abolition of duty-free facilities; the steps, if any, she is taking to have the EU proposal changed; and if she will make a statement on the matter. [14916/97]

Bernard J. Durkan

Ceist:

74 Mr. Durkan asked the Minister for Public Enterprise the steps, if any, she proposes to take at EU level with a view to the retention of duty-free shops; and if she will make a statement on the matter. [14952/97]

I propose to take Questions Nos. 25, 61, 62, 67 and 74 together.

The programme for Government, under the transport heading, says that key priorities will include resistance to EU plans to abolish duty free shopping after June 1999.

On my part I am very concerned about the economic and social consequences for Ireland of the scheduled abolition of intra Union duty free sales, in particular the effects on employment and access costs for tourism and trade. For this reason I am taking an active role in the campaign to raise awareness of the duty free issue.

At the Duty Free in Europe Conference in Brussels on 24 September 1997 I highlighted the Government's position and I called on the EU Commission to conduct an EU-wide study into the economic and social effects on Europe of ending duty free.

I believe the results of such a study could pave the way for an open-ended derogation, which can be reviewed as circumstances change.

At their Council meeting in June this year, Transport Ministers supported the concept of this EU-wide study. I should point out, however, that reversal of the scheduled abolition is primarily a matter for Finance Ministers and requires a proposal from the EU Commission and unanimous agreement of the Council of Finance Ministers.

In response to concerns relating to Dublin, Cork and Shannon Airports, I should point out that Aer Rianta, which has responsibility for the management and operation of the three State airports on my behalf, is leading a campaign, at industry level, to retain intra EU duty free. It is also actively pursuing a range of activities to mitigate the loss of revenue in the event that efforts to retain duty free are unsuccessful. This includes looking at alternative commercial activities at the three airports and examining opportunities overseas to provide additional revenue to the company.

My colleague, the Minister for Finance, is currently awaiting the report of a study, commissioned by his Department, to establish the impact of the loss of duty free on Irish employment, transport and Government revenues. This study is expected to be completed by the end of the year. The results will be used to inform the debate at national and EU level. Other member states have undertaken studies in areas particularly relevant to themselves. However, as I mentioned before, the key, I believe, is to convince the EU Commission to commission an EU-wide study.
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