Fifty years ago the world's first duty free shop was set up at Shannon Airport now a change to European Union economic borders could end the business.
Duty free shopping is now responsible for sales in the European Union of over £4.5 billion each year, with over £100 million generated in Ireland. Duty free also provides 140,000 jobs in the EU with up to 2,000 of these in Ireland. Duty free is responsible for £30 million of Aer Rianta's £42 million turnover last year.
Airport duty free shopping first started at Shannon in 1947.
As Shannon Airport celebrates 50 years of duty free, it faces the threat of being abolished entirely from the European Union by June 1999. This is to coincide with the phasing out of European economic borders. In response to this threat, the lobby in Europe to keep duty free is gaining strength. A conference held in Limerick today to mark 50 years of Shannon Duty Free heard from other world trading blocks how there is no need to remove duty free in free trading zones as long as the buyer has proof of purchase in another country.
Norman Beavon of the Australian Duty Free Association explains that Australia and New Zealand continue to have duty free in line with their open skies policy.
We believe that there is no problem with borders provided you can prove export in either case.
A Fianna Fáil Progressive Democrat (PD) coalition government agreed to the European directive in 1991 to get end duty free sales. There are now calls for this decision to be rescinded.
MEP John Cushnahan says that he hopes Taoiseach Bertie Ahern, who was Minister for Finance at the time of the European agreement to abolish duty free, is able to undo the damage inflicted on Irish duty free trade.
An RTÉ News report broadcast on 9 June 1997. The reporter is Cathy Halloran.
