§ Mr. HindTo ask the Chancellor of the Exchequer if he will make a statement on the future of duty-free shopping for travellers within the European Community.
§ Mrs. Gillian ShephardThe Government have carefully considered all the evidence received from industries likely to be affected by abolition of the current duty-free arrangements in the light of the European Commission's position that duty-free should cease for intra-EC traffic as part of the dismantling of fiscal frontiers at the end of 1992. The Government feel that there is no case for indefinite retention of duty-frees once the single market has been established, but that a substantial transition period would be helpful to give affected industries time to reorganise and seek alternative sources of revenue. My right hon. Friend the Chancellor of the Exchequer will be arguing for such a transition in forthcoming negotiations in Brussels.