DEFENDERS of duty-free sales inside the European Union yesterday failed in a last-ditch attempt to prevent them being phased out in 13 months time.
Although travellers flying to and from non-EU countries will still be able to buy duty-free alcohol, cigarettes, and perfume, yesterday's decision in Brussels sounds the death knell for the #3000m industry on internal EU journeys.
In a tactical ploy, the pro-duty free campaigners had argued for a wide-ranging impact study by the European Commission on the economic and employment consequences of ending the travellers' traditional perk.
They had hoped that the fear of job losses, which the International Duty Free Confederation had estimated would run to over 100,000 throughout the union, and the prospect of higher air and ferry fares, would convince European finance ministers to overturn the abolition decision which was unanimously endorsed by EU governments seven years ago.
The lead was yesterday taken by the Irish finance minister, Mr Charlie McCreevy, who stressed the importance of the sales to the Irish economy.
But only his French and German colleagues gave him their unequivocal support, although Chancellor Gordon Brown, who chaired the meeting, later admitted he also backed the idea of an impact study.
''I would have preferred a study on the abolition of duty-free and its successor regime, but there was not sufficient support today,'' he said, pointing out that any move to change the 1991 decision would require the unanimous backing of all 15 EU governments.
The decision was strongly criticised by SNP MEP Allan Macartney. He said: ''My biggest fear is that the smaller airports in the more peripheral parts of Europe, like Aberdeen, will now bear the brunt of this measure and industries like the Scotch whisky producers will pay a heavy price too.''
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