§ Mrs. EwingTo ask the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for North Thanet (Mr. Gale), of 1 December 1997,Official Report, column 94, on duty-free trade, if he will list the steps which duty and tax free shops in UK airports with only limited non-European Union international flights can take to adapt to the removal of intra-European Union duty free; and if he will make a statement. [25210]
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§ Dawn Primarolo[holding answer 27 January 1998]: The current extension of the intra-EU duty free regime to 30 June 1999 was agreed by the Council of Finance Ministers, in 1991, so as to allow duty free operators time to adjust and explore alternative ways of carrying on the business.
Following abolition, operators currently engaged in intra-EU duty free trade who wish to carry on their business will have to adopt their operations to dealing in goods on a duty and tax paid basis.
§ Mrs. EwingTo ask the Chancellor of the Exchequer what representations he has received concerning the impact of the abolition of intra-European Union duty free on(a) the viability of European flights from Scottish and regional United Kingdom airports, (b) employment in Scottish and regional United Kingdom airports and (c) the cost of European flights from Scottish and regional United Kingdom airports. [25209]
§ Dawn Primarolo[holding answer 27 January 1998]: I have received a number of representations from various airport authorities within the United Kingdom including Scotland. These representations include, among other things, the viability and cost of European flights and the effect on employment.
§ Mrs. EwingTo ask the Chancellor of the Exchequer if he will make it his policy to press for a continuation of duty-free sales within the European Union until there has been an equalisation of alcohol duties between the member states of the European Union; what plans he has to discuss this issue with European Treasury ministers in the course of the United Kingdom presidency of the European Union; and if he will make a statement. [25208]
§ Dawn Primarolo[holding answer 27 January 1998]: The Government have no plans to use the UK Presidency to press for a continuation of duty free sales. However, the UK will not stand in the way of any proposal for a Commission study particularly if this were also to examine the nature of any successor regime to duty free. The equalisation of duties and taxes was not a factor in the decision taken by the Council of Finance Ministers towards the end of 1991 to allow duty-free shopping to continue after 1 January 1993 to 30 June 1999.