Dáil Éireann díospóireacht -
Tuesday, 14 Oct 1997

Vol. 481 No. 4

Written Answers. - Duty Free Sales.

Liam Lawlor

Ceist:

88 Mr. Lawlor asked the Minister for Public Enterprise the Government's approach to the planned abolition of duty free shopping in the EU in mid-1999 in view of the serious disquiet of Irish workers and their families (details supplied) and the perceived damage to key sectoral interests in the national economy. [16457/97]

Minister for Public Enterprise (Mrs. O'Rourke)

As I stated in my response to Question No. 61 on 1 October 1997, 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-Community 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 Irish 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 sales.

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

At their Council meeting in June this year, Transport Ministers supported the concept of this EU wide study. Moreover, at my first Transport Council since taking office, held last week in Luxembourg, I took the opportunity of emphasising my position on this issue in the context of a discussion on a draft directive on airport charges. 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 sales. It is also actively pursuing a range of activities to mitigate the loss of revenue in the event that efforts to retain duty free sales 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 sales 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.