McCreevy presses EU on duty-free

The Minister for Finance, Mr McCreevy, will be urging European Union finance ministers to reconsider the proposed abolition of…

The Minister for Finance, Mr McCreevy, will be urging European Union finance ministers to reconsider the proposed abolition of duty-free sales at a meeting in Brussels next week.

The Minister said yesterday he would calling on the EU Commission to carry out a study to examine the economic and social affects of the ending of duty-free from July 1st next year. But he warned that the Government could not continue to seek a victory without the support of other member-states.

So far, Ireland has been alone in raising the duty free issue at these meetings. "We need to be supported by other member-states and, with this in mind, the Government has been raising the matter at a number of forums and it will continue to do all it can to keep this issue on the political agenda" the Minister said yesterday.

The Federation of Transport Unions is planning a 12-hour "vigil" outside the Brussels building where the ministers will meet to express its concern for union members' jobs. Unlike the demonstration at a finance ministers' meeting in December, when some 2,000 transport workers took part, there will be at most 15 people from each EU state in attendance. Mr McCreevy is due to visit a number of duty-free outlets at the weekend, calling at Knock, Shannon and Kerry airports. On Monday, he will also visit Cork and Dublin airport duty-free shopping areas. The Irish Duty Free Association welcomed the Minister's visit and will be urging him to argue for a socio-economic study of the consequences of abolition.

READ MORE

Mr McCreevy has already circulated a study of Ireland's duty-free industry to his Ecofin colleagues ahead of Tuesday's meeting. The FF/PD Coalition, in its Programme for Government, gave a firm commitment to resist the EU plans to abolish duty-free shopping. Mr McCreevy said the Government would continue to work at all levels to achieve this goal.

"The issue of real jobs, for real people cannot be used as a political football. As a Government we will do all that we can to lift the threat of job losses for Irish duty free workers," he stated.

The EU is planning to abolish duty-free sales on the grounds that they are contrary to the principle of an open market. But the Centre of Economic and Business Research in Ireland has estimated that this would lead to 7,400 job losses, and a further 2,300 job losses in Irish companies which supply these products to the duty-free outlets.

Regional airports would also suffer a significant fall in revenues. The Irish Duty Free Association has suggested fares may also have to rise.