Ruairí Quinn
Ceist:34 Mr. Quinn asked the Minister for Finance if he has received the EU Commission report on the retention of duty free sales; and if he will make a statement on the matter. [4264/99]
Written Answers. - Duty Free Sales.
Ivor Callely
Ceist:50 Mr. Callely asked the Minister for Finance the level of economic gain received from duty free sales; the turnover of duty free sales for each of the years from 1993 to 1998; the impact the loss of these sales will have on the economy; and if he will make a statement on the matter. [5380/99]
I propose to take Questions Nos. 34 and 50 together.
The Deputy will be aware of my response to a priority question about duty free sales today.
I am aware of the contents of the Commission report which was presented on 17 February 1999. The Commission has concluded that the overall effect on employment, post 30 June 1999, will not be as negative as feared. The Commission cites the following reasons for its belief – sales of previously duty free goods will continue as people wait at airports and have time on board ferries, the price advantage is not always significant vis-à-vis high street shops, except for tobacco, safety regulations will be a determinant with regard to staffing levels on aircraft, and there will be certain gains to the national exchequers.
Data as requested by Deputy Callely is not routinely collected, but as the House is aware, my Department specially commissioned KPMG to examine the impact of the abolition of duty free and tax free sales for intra-EU travel and to specifically consider the impact on Government revenues, the impact on points of entry and carriers and the impact on the cost of travel. The report was presented in March 1998 and a copy is available in the Oireachtas Library. It shows information about duty free sales including employment.
As the Deputies are aware, there are both public and private operators in this area of activity. I can confirm to the House that the KPMG report stated that total intra-EU duty and tax free sales in Ireland in 1996 was in excess of £100 million including £64 million by Aer Rianta. I have no reason to believe that there was any fall off in this figure during 1997 and 1998 given the substantial increase in the number of travellers.