Seanad debates

Tuesday, 8 December 2020

Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020: Report and Final Stages

 

10:30 am

Photo of Jerry ButtimerJerry Buttimer (Fine Gael) | Oireachtas source

The amendment concerns a review and I will speak to that matter. I welcome the Minister of State, Deputy Thomas Byrne, to the House. I wish him well in his endeavours in the next critical period.

The decision of the United Kingdom to scrap VAT-free shopping for non-EU visitors will, according to the UK Treasury, save £500 million in a calendar year. That is without any review taking place. As reported in The Sunday Times last Sunday, the Centre for Economic Policy Research predicts that the wider economic damage will end up costing the UK Treasury £3.5 billion.

I wholeheartedly support the Leader's amendment, as it is the correct approach. Why can we not retain a review of the retail export scheme that would give us an opportunity as a country to have a real look at the consequences of what the Government proposes and, if necessary, to ensure that the process would be scrapped if no benefit accrued.

Last week in the House, the Minister of State at the Department of Finance, Deputy Fleming, attended and spoke correctly about the €175 imposition being reduced to €75, with the €175 figure being introduced for the 2020 calendar year. The Minister of State did not say that the legislation was passed for the context of a no-deal Brexit and the United Kingdom operating a similar scheme, which it is not. It was a contingency for a no-deal position.It is important to note the €175 imposition did not come into effect.

Another point that needs to be addressed in the Bill in the context of where we are today is that, by 1 January next, retailers will need to have a new management system and new till operating system in place to deal with the imposition of this threshold. The Minister of State has responsibility for Brexit. Has there been engagement with retailers and, if so, has that engagement been reviewed? How will retailers update their systems to facilitate the introduction of the €75 imposition? For example, how will it operate with Revenue regarding refunds? How will the Government work with traders and Revenue to implement the provision in a positive way on 1 January if it comes into effect?

If we are serious about the European Union in the context of the Brexit Bill, we need to ensure a digital solution is operational and we have an ability to ensure compliance with this aspect of the retail export scheme. Has there been any engagement with the United Kingdom on this? How will we manage the scheme for tourists coming into the country? A tourist will be asked to spend €75, which is great, but what happens if a purchase to that value is not possible in a particular shop? To take the example of clothing, such as a jumper and pants at the high end, purchases of such products could be made in Quills in Killarney or Kenmare.

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