Last attempt to rescue duty-free set for next week

The final attempt to rescue dutyfree sales will now be made at the Berlin summit next week. This followed a meeting of EU finance ministers yesterday which confirmed solid opposition by six countries to any stay of execution.

Few observers now imagine the leaders will be able to do more at the summit than a ritual dance for the cameras followed by a funeral.

Confirming the views expressed last week at a meeting of EU ambassadors, six countries yesterday spoke against German compromise proposals which would extend excise duty relief for 2 1/2 years while ending VAT concessions in June.

The opposition to a reprieve was led by the Danes and supported by Belgium, the Netherlands, Italy, Portugal and Finland.

The German proposals were supported by Ireland, Britain, France, Germany, Spain and Greece.

The Minister for Finance, Mr McCreevy, said it was important to be realistic. "We are a long way from unanimity and it requires unanimity," he said.

The British Chancellor, Mr Gordon Brown, said the decision would go to heads of government but also cautioned strongly against any sense of undue optimism.

The meeting was lobbied by a group of 30 duty-free workers from Ireland, mostly from Shannon.

Their spokeswoman, Ms Mary Cusack, said the ending of the facility could mean the equivalent of 100 jobs in Shannon.

The move came at an appalling time, she said.

With Aer Rianta becoming a semi-State body and now required to pay rates, and the need to build a new terminal, abolition of dutyfree was an extra burden that could not be afforded.

The Munster MEP, Mr John Cushnahan, who travelled with the group, said duty-free had originated in Shannon and its demise would be a psychological blow to the whole region.

He said that with the final decision being made in Berlin he hoped it would now be part of an overall political package involving an equitable deal on Agenda 2000.