WRITTEN QUESTION No. 2131/98 by Concepció FERRER to the Commission. Abolition of duty-free sales
Date: 1998-07-10
Institutions: European Parliament, FERRER
Subjects: duty-free sale, economic analysis, economic consequence, economic conversion, job cuts, marketing restriction, retail selling, unemployment

5.2.1999

EN

Official Journal of the European Communities

C 31/125

(1999/C 31/173)

WRITTEN QUESTION E-2131/98

by Concepci(cid:243) Ferrer (PPE) to the Commission

(10 July 1998)

Subject: Abolition of duty-free sales

The abolition of duty-free sales from 1 July 1999 will have short-term implications similar to those experienced
when internal customs duties within the Community were eliminated. The response then was to introduce various
programmes and measures to cushion the negative impact of the elimination of duties, particularly on the
employment sphere.

Given that the 140 000 jobs generated by the duty-free sector in the Union will be lost with the impending
abolition of duty-free sales, does the Commission intend to undertake similar action to minimize the adverse
effects on the duty-free sector?

Answer given by Mr Monti on behalf of the Commission

(8 September 1998)

The Commission would remind the Honourable Member that the implications of the abolition of intra-
Community duty-free sales played a prominent part in the discussions on the completion of the internal market
to which she refers. Recognising that there could be social repercussions if abolition was immediate, the Council
granted the duty-free sector an extension of nearly eight years so that it could adapt and prepare for the situation
after abolition. Compared to the programmes and measures adopted for other trade sectors, this was a very
favourable outcome for the duty-free sector.

Nevertheless, the Commission is of course still concerned about the possible repercussions on jobs as a result of
abolition. At the Ecofin Council on 19 May 1998, ministers acknowledged the Commission(cid:146)s position that if
abolition should cause any specific, regional or transport-related problems, then existing Community provisions
might well be available to alleviate those problems. To that end, ministers called on the Commission to prepare a
working document, which would clarify the instruments available to Member States to address any undesirable
consequences of abolition. Work has started on that document and it will be made available to the Ecofin Council
in the near future. Parliament will of course be kept informed of progress on this issue.

Finally, the Commission does not accept the validity of the figure for job losses that the Honourable Member says
will result from abolition. The figure comes from studies sponsored by the duty-free lobby, which are based on
worst-case scenarios and which take no account of the possibility for duty-free operators to exploit alternative
forms of retailing, or of existing sales being retained, albeit at reduced margins. They also take little or no account
of the employment gains that will arise in domestic markets where replacement purchases will be made, or of the
employment potential that the increased revenue from replacement sales will generate. Government-sponsored
studies in Denmark, Ireland and Sweden have all shown that the figures used by this lobby are gross
exaggerations of what may occur in reality.

(1999/C 31/174)

WRITTEN QUESTION P-2135/98

by Daniela Raschhofer (NI) to the Commission

(30 June 1998)

Subject: Searches of the premises of Austrian banks

According to the Commission(cid:146)s press release IP98/556 of 23 June 1998, the premises of four Austrian banks have
been searched without warning.

1. What press reports were primarily responsible for the decision to open an investigation, what specific
information did they contain, and how did the Directorate-General learn of them?

2. More than a year passed between the launching of the investigation and the searches on 23 June 1998. What
were the main reasons for not carrying out the searches before this date?