asked the Minister for Industry and Commerce if, with reference to the Customs Duties (Agricultural Machinery) (Provisional Imposition) Order, 1932—Statutory Rules and Orders No. 21 of 1932—he will state (1) the number and distribution of the Saorstát firms engaged in the manufacture of the protected articles, the amount of capital invested therein, the number of persons employed therein, and the value of their annual production; (2) the relative costs of production here and in Great Britain; (3) the cost of labour and rates of wages in this industry in the Saorstát as compared with such cost and rates in Great Britain; (4) the increase expected to result from the imposition of the duties in the number of firms engaging in the industry, in the invested capital, in the employment given, and in annual output; (5) to what extent consumers of the articles protected by the Order can have their requirements met by the home manufacturers, and what benefit is expected to accrue to the revenue of the Saorstát from the new duties, and (6) if any application for aid, other than the tariff, has been made to him by any of the firms now engaged in the industry, or by any person or firm proposing to engage in the industry.
Ceisteanna—Questions. Oral Answers. - Tariff on Agricultural Machinery.
There are three firms in Wexford specialising in the production of agricultural machinery. A Limerick and a Waterford firm make certain types of agricultural machines, and a number of firms in various parts of the country make a wide range of spare parts for ploughs and other agricultural machinery and implements. No official information is available as to the amount of capital invested in the industry. A more detailed reply has been given in answer to another question relating to the numbers employed in the manufacture of agricultural machinery in the Saorstát. Approximately, this may be taken as 400. The value of the annual production of Saorstát firms of agricultural machinery, implements and parts in 1926 was £108,204 and in 1929 £107,185. The rates of wages in this industry are slightly higher than the corresponding rates in Great Britain, but this factor has not resulted in any appreciable difference in the cost of machinery to the farmer in the Saorstát as compared with Great Britain. Comparatively small additions and extensions to the plant and equipment of the existing firms would be sufficient to produce the total requirements of the country in the classes of machinery to which the duty applies. An increase need not therefore necessarily occur in the number of firms engaged in the industry. An approximate estimate of the additional employment likely to be afforded in the industry if all the requirements of the country in the particular classes scheduled in the Order were manufactured in the Saorstát is 500. I am satisfied that the requirements of the farming community can be met within a reasonable time from the output of the home manufacturers in respect of the machinery protected by the Order. No application has been received by the Department from any firm or person engaged in this industry for financial assistance.
Will the Minister make application to these manufacturers to ascertain if they are in a position to make parts for the foreign machinery at present in this country because it would involve an enormous addition to the price of these parts if the amount of the tax is imposed upon them?
Am I right in assuming that no benefit is expected to accrue to the revenues of the State from the tariff?
No.
Will the Minister say what he considers a reasonable time for parts to be manufactured in the State?
I am satisfied in respect of the classes of machinery to which the Order applies that the home firms are in a position to supply all the requirements of the country. Certain modifications in the duty will be made. I have explained that the duty was imposed as a result of information reaching me that abnormal importations were taking place or were about to take place. The permanent proposals of the Government for the protection of this industry will be submitted to the Dáil later. In the meantime, of course, the emergency duty operates.
I asked the Minister in part 5 of the question, what benefit is expected to accrue to the revenue of the Saorstát from the new duties?
None.
May I ask further in regard to the abnormal importations to which the Minister has referred was there any index to the amount of these abnormal importations given by a decrease in the employment that comes from these firms?
I am afraid I do not get that.
Abnormal importations are suggested to be the cause of the Order. Were these reflected in a decrease in the employment given by the firms?
No. The employment given by the firms had decreased between 1926 and 1929 and has not since recovered, but the abnormal importations to which I referred were probably consequent upon the change of Government and do not reflect any process which has been for a long time in operation.
Then how does the Minister establish the case that there had been a decrease in employment given by these firms between 1926 and 1929 since he has stated that the comparison of the annual produce of these firms in these two years was £108,000 and £107,000, merely a drop of £1,000?
Is the Minister aware that immediately prior to the application of the tariff, men were being paid off weekly by this firm?
The information available in the Department, although it relates to firms whose output includes products other than agricultural machinery, shows that the employment given by those firms decreased substantially between the years already indicated.
Could we have the figures?
I have already given them to the Deputy.
I would like to know from the Minister if he is satisfied that the Irish firms manufacturing agricultural machinery and assembling the parts are in a position to supply machinery suitable to the different conditions in the country? For instance, we know that a mowing machine will suit one part of the country and it might be a failure in another part of the country.
I am quite satisfied.
May I state for the information of the Minister——
The Deputy may not make a statement.
The Minister has stated that employment between the years 1926 and 1929 showed a decline. The Minister also stated that the value of the annual production in 1926 was £108,000 and in 1929 £107,000. The decrease in employment, which is said to be considerable, has shown, so far as output is concerned, a decline of only £1,000. What does this mean? Does it mean that fewer workers produced much the same amount of manufactured articles—were responsible for much the same amount of production as a greater number of workers in the preceding three years?
I have already explained that the figures relating to the number of persons employed on the manufacture of agricultural machinery only are not available. The figures I quoted relate to the employment given by the firms which make agricultural machinery as well as other products.
I will direct attention to a matter of more practical importance. The Minister indicated that there will be some adjustment in the tax on parts of machinery. If the Minister intends to make such an order, I would like him to make it at once because this is the time of the year when farmers are anxious to use this class of machinery. There is obviously a necessity for making this order for a rebate or a modification of the tax on parts, and if the Minister could see his way to do it immediately I am sure those interested in the farming industry would feel very grateful.