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Monday, 22 April 1985
Page: 1348

(Question No. 10)

Senator Puplick asked the Minister for Industry, Technology and Commerce, upon notice, on 22 February 1985:

(1) What discussions were held by any Minister of the current Government with representatives of the duty free industry prior to the announcement of the Government's decision to proceed with legislation to facilitate inward duty free shopping.

(2) What revenue does the Government anticipate receiving from the introduction of inward duty free shopping.

Senator Button —The answers to the honourable senator's questions are as follows:

(1) The Hon. Kim C. Beazley, then Minister for Aviation, met with representatives of one of the major national duty free shop operators on 9 May 1983.

I met with the same people together with representatives of another major operator on 29 November 1983.

I understand that the Minister for Sport, Recreation and Tourism also held extensive discussions with representatives of the duty free industry prior to the announcement of the Government decision.

(2) Prospective annual revenues from IDFS have been estimated at $5m. The decision to introduce IDFS was not based solely on revenue gains and there will probably be some Customs duty and sales tax forgone. However, in reaching its decision the Government was very much aware of the benefits which will be created by the generation of employment, increased safety aboard aircraft and fuel economies for airline operators.