Duty-free freight rates fear
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• Seafrance has warned that freight rates could more than double if the planned abolition of duty free sales goes ahead in 1999. The ferry company depends on duty free for 50% of its revenue— and last year it still lost FF100rn (10m).
"There would be a huge impact on freight tariffs if duty free were abolished," says director Didier Bonnet, who estimates hauliers would have to pay increases of up to 100150%. "We have been able to cut the freight rates because of duty free," he adds.
Other ferry operators are more reticent on the subject, although they agree with recent research by transport consul tants MDS Transmodal that some services could disappear.
The research shows that an average of 20% of ferry operator incomes comes from dutyfree sales on the North Sea, rising to nearly 30% on the Western Channel and Irish routes and 45% on the Dover Straits.
In June 1999 tax and dutyfree shopping is scheduled to disappear throughout the European Union. Channel Tunnel operator Eurotunnel supports abolition, saying it brings the ferry companies a 1150m-a-year "subsidy".
_ Seafrance is also locked in a battle at the European Union to prevent the merger of rivals Stena Line and P&O European Ferries on the short sea routes, which it sees as unfair competition.