Abolishing duty free facilities would almost certainly force the closure of direct ferry routes from Ireland to the continent, a new report has claimed. It has said the EU move would also put in jeopardy the Cork Swansea route.

The report, commissioned by the European ferry industry, argues that duty free sales represent an essential 30 per cent of revenue to Irish ferry companies. It predicts the loss of 1,800 jobs in, or associated with, the industry and a further 2,200 in local tourism. It also claims that it will result in increases of 10 per cent in prices on remaining sea routes. The study was carried out as part of a campaign by the duty free industry against the EU's decision in 1991 to end the facility by the beginning of July 1999. Page 2