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ECJ says no to cheap mail-order drinks

Friday, 24th November 2006

In a pre-Christmas blow to festive cheer, the European Court of Justice (ECJ) has ruled against the right of EU citizens to place cross-border orders for cheap cigarettes and alcoholic drinks from countries with lower duty rates, without going in person to pick up their orders.

Currently, consumers have had to travel across the Channel to accompany their purchases, giving rise to "Booze Cruises". Many smokers and drinkers were hoping for a ruling that would allow them simply to order on the internet and wait for the goods to arrive. But they have been disappointed.

East Midlands Conservative MEPs Roger Helmer and Chris Heaton-Harris have given the decision a guarded welcome. They believe that the current rules make a nonsense of the principles of the Single Market. If we are to have free movement of goods without duties or tariffs at internal borders, that should work for people too. However a Yes decision could have brought its own difficulties.

Speaking today, Roger Helmer said;

"Let's not kid ourselves that Gordon Brown would have taken this huge hit lying down, I have no doubt that Gordon had a well-developed contingency plan to raise new taxes elsewhere to make up the shortfall".

Chris Heaton-Harris expressed relief for small retailers in the East Midlands:

"This could have been a death-knell for small retailers and newsagents who depend especially on cigarette sales to make up their turnover. And another nail in the coffin of rural public houses who also benefit from tobacco sales".

Both MEPs said they would have been very concerned about a sudden price reduction on cigarettes and alcohol at a time when we are increasingly worried about the health effects of tobacco and drugs, especially on young people.

They are also concerned about the precedent the decision could have created for Brussels interference in UK tax policy.

"The ECJ might have come along this time like Father Christmas with cheap fags and booze", says Mr Helmer "But if we once let them get a handle on UK tax policy, then most taxes will only go one way, and that's upwards".