Oireachtas Joint and Select Committees

Tuesday, 17 September 2019

Committee on Budgetary Oversight

Pre-Budget Scrutiny: Minister for Finance

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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I raised the duty-free issue with the Minister during the debate on the Brexit omnibus Bill was that of duty free. On that occasion we legislated for it but the Minister had had assurances from his counterpart, Philip Hammond, that the British Government would not go down the direction of a duty-free zone. That has obviously changed. At the time, the Minister clarified to the House that this would be of serious significance for himself and the Exchequer. Now that it potentially is a reality, given a no-deal Brexit, what is its significance? What will be the hit to the Exchequer? Is it just the case that it will be balanced off given that we have reciprocated? In that debate I raised an issue, which was picked up earlier by Deputy Breathnach, namely, that there are three well-established ferry crossings between North and South. I know that this would require authorisation but there would be an EU frontier on our island. Is there now a scenario where one could nip across the Border on the ferry and, as one can in London, buy 400 Silk Cut purple for £63 rather than paying €260 for them in the shop in the South? Is that a real scenario? The crucial point is the impact of duty free on the Exchequer.

It is a budgetary matter, but given the difference between the price of 400 cigarettes on a flight to Manchester, Glasgow or wherever, at £63 compared to €260 in the shops here, I assume that the Minister is not looking to increase the price of tobacco products. Is this something he is worried about?