McCreevy seeks to reopen duty free debate

The Minister for Finance will today appeal to fellow EU Finance Ministers, three days before the Irish referendum on Amsterdam…

The Minister for Finance will today appeal to fellow EU Finance Ministers, three days before the Irish referendum on Amsterdam, to debate again the abolition of duty-free facilities.

A report published yesterday by the duty-free lobby estimates job losses from the abolition at 112,000 to 140,000 of which 90 per cent are likely to be in the first two years after it takes place.

That will happen on July 1st next year unless finance ministers agree unanimously to reverse a unanimous decision of 1992 to end intra-EU duty free by then as part of the completion of the single market.

The study, conducted for the International Duty-Free Confederation by the consultancy, the Centre for Economics and Business Research, which has previously worked for the Commission, also argues that the retention of duty free would lead to the creation of 23,000 to 30,000 jobs by 2005.

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Moreover, to replace lost jobs would cost £55,000 to £110,000 apiece, the report says.

Today, Mr McCreevy's priority will be persuading the European Commission to proceed with the impact study that abolition opponents insist was promised in 1992 but has never been forthcoming.

The Commission argues that as the decision of ministers on dutyfree is final, such a report is unnecessary and merely a backdoor method of reopening the issue.

While it is clear some countries, notably Holland and Denmark, oppose a U-turn on

duty-free, Mr McCreevy hopes they will be less resistant to asking for a report on the impact.

Patrick Smyth

Patrick Smyth

Patrick Smyth is former Europe editor of The Irish Times