Donal Carey
Ceist:10 Mr. D. Carey asked the Minister for Finance the terms of reference of the consultants engaged by his Department to study the consequences for Ireland of the ending of duty free sales for intra-EU travel. [15684/97]
Written Answers. - Duty Free Sales.
I have asked KPMG Management Consulting to undertake a study into the consequences for Ireland of ending duty free sales for intra-EU travel. The terms of reference require an assessment in three areas.
First, an assessment of the likely impact on Government revenue flows, balancing increased VAT and excise receipts from domestic sales against any changes in corporation tax or social welfare payments.
Second, the possible impact on employment for airports and air carriers and for seaports and ferry operators. Any consequence on "out of season" winter travel for the ferry operators will also be covered. Employment in this case means those directly employed by the ports and carriers-ferry operators. The effect on seasonal employment will also be included.
Third, the study will include an assessment of the extent to which travel fares may rise if operators are no longer able to cross-subsidise activities from the profits made on duty free sales. The study will also assess if there are any implications for freight charges.
The consultants have been requested to state exactly what assumptions they are making in the study on tourism volumes, consumption levels, employment patterns and growth in the numbers of persons travelling.