Jerry Buttimer (Fine Gael) | Oireachtas source

I feel a little out of place in doing this, but I feel I must. Notwithstanding that the committee that I chaired recommended that duty free and retail travel trade outlets be subject to the same labelling requirements and that the committee was very strong in its views in that regard, I am seeking clarification on the actual impact of section 11 of the Bill on duty free travel retail outlets. It was under head 5 of the general scheme of the Bill before the committee. At the time and since, I have spoken with people from Cork Airport and Dublin Airport Authority, who have serious concerns. While I fully support everything that has been discussed under section 11, we need to seek clarification on the issue of duty free travel and retail. They are of the view that they will be put at a disadvantage. They are talking about duty free exclusives for the duty free shop in the airport, which are not in the domestic market. They are of high retail value but of low volume.

I do not fly a flag but feel I have to make refer to this issue. I am told 87% of international brands that are stocked do not sell at a very high volume in the stores. The duty free people pointed out that it would not be possible for the supplier to continue with these Irish exclusives if there is comprehensive labelling. I stress again that I support the labelling. However, they said they would pull the supply of some of these brands and products. I have met with some of the artisan brewers and distillers from Ireland, indigenous industries that are also affected. They said it would put them in a greatly uncompetitive position. The airports of Cork, Dublin, and Shannon are competing, as are Knock and Waterford perhaps although not with other domestic markets but with airlines and other airports. I am not sure how accurate this figure is, but they said that alcohol accounts for 20% of sales in the duty free travel retail sector.

I agree with Senator Boyhan that it is important for us to engage with different lobby groups that are for, against or whatever. It is only by engaging that we can learn and perfect the argument and the Bill. Could there be a look at the labelling requirement in terms of the duty free shops? If it cannot be done, that is fine.It is important, in the spirit of engagement, that we might look at this because it could be an unintended consequence of the Bill. Just in case anyone thinks I do not support the section that deals with labelling, I stress that I strongly do so. By the way, I do not have any vested interests in this regard.