MEP says WHO ban on duty-free alcohol could ruin industry

AN Irish MEP has urged the EU to oppose World Health Organisation (WHO) plans which he says could ruin Europe’s €2 billion duty-free alcohol industry.

The WHO meets this week to discuss a new global alcohol policy which includes a proposal to effectively ban duty-free alcohol sales.

But Fine Gael Munster MEP Sean Kelly described the proposals as “unreasonable” and said they should be scrapped immediately.

“I have written to the European Commission urging them to oppose these ill-thought proposals and to replace them with an effective strategy based on real evidence which would seriously tackle the problem of alcohol abuse,” he said.

In its latest strategy paper entitled Strategies to reduce the harmful use of alcohol – draft global strategy, the WHO has recommended “taxing sales of alcoholic beverages to, and/or the importation of such beverages by, international travellers on the same basis as if such travellers had purchased such beverages in the domestic market of the country levying the taxes”.

The WHO’s executive board meets this week to discuss the paper. If agreed, it will go before the WHO Assembly in May, following which governments will be encouraged, but not bound, to implement it as policy.

But Mr Kelly said there is no evidence of any link between the sale of duty-free alcohol and alcohol abuse, and he said the sale of duty-free alcohol products is heavily regulated through Customs restrictions.

“While I would support any credible initiative to combat the health and social problems caused by alcohol abuse, the WHO’s proposal is unreasonable,” he said. “A ban on duty-free sales of alcohol would cause massive revenue problems for Aer Rianta and have a devastating impact on the worldwide sales of prestigious Irish alcohol products such as whisky and cream liquers.

“Irish industry simply cannot afford to lose this revenue, especially when it is based on a misguided attempt to resolve a problem which is very complex. A ban would create additional unemployment in the middle of a major recession.”

The European Travel Retail Council (ETRC) has also expressed concerns about the WHO proposal.

ETRC secretary general Keith Spinks said: “We are worried as this has come completely out of the blue. We need to mobilise the industry to get this removed.”