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Dáil Éireann debate -
Tuesday, 21 Jul 1936

Vol. 63 No. 12

Committee on Finance. - Adjournment Debate—Importation of Spices and Peppers.

Recently I asked the Minister for Industry and Commerce if the duty which he had imposed on peppers and spices had a protective purpose, and he said it had. I asked him, therefore, why he had issued licences for the importation of these commodities, free of duty, while there were abundant sources of supply of ground peppers and spices in Saorstát Eireann. He said he had only issued licences in the early stage for a short period. The Minister as reported in column 1302, volume 63 (4) of the Official Reports stated:—

"For a short period after the imposition of the duty recommendations for licences for the importation of ground spices, free of duty, were made for strictly limited quantities, in order to facilitate importers during the transition period."

I now desire to submit to the House that the facts of the case are these: that licences were issued by the Department of Industry and Commerce to users of ground spices and peppers for the purpose of facilitating these parties in continuing to deal with foreign firms until such time as there was established in this country a new firm in the pepper and spices grinding business to replace a firm which was already in existence here. I charge the Department of Industry and Commerce with having issued licences to the customers of an existing firm, which is manufacturing ground spices and peppers, to import these commodities free of duty, and that these licences were issued long after the Department of Industry and Commerce had been fixed with notice that there was a firm operating in this country capable of supplying the country's requirements in these ground spices and peppers.

I ask the House to note that the firm in question was established here years before there was any suggestion that a tariff should be put on. It was established here in the face of open competition and was doing pretty well. The House might be interested to know that the proprietor of this firm has been a faithful supporter of the Fianna Fáil Party. When the Minister for Industry and Commerce was speaking on the Finance Bill here, explaining the tariffs, he said that this tariff on ground spices and peppers was designed to establish a new industry, to wit, the grinding of these spices and peppers. That statement was made on the 21st May. The proprietor of the firm, which was already established here, wrote to the Minister on the 26th May and drew attention to the fact that on page 280 of the Official Trade Directory of the Department of Industry and Commerce the name of his firm was shown as a firm which was then grinding spices and peppers, and he asked the Minister to correct the impression which the Minister had created in the public mind by what he stated in the Dáil on 21st May, when he said the object of the duty was to create a new industry. Subsequently the Minister for Industry did state in this House that he had created a false impression.

But I now allege that ten days after May 26th, when the Minister received the letter directing his attention to the fact that there was a firm grinding spices and peppers in this country, the Minister wrote to another firm and then informed them, as late as the first week in June, that there was no one grinding spices and peppers in this country, but that he hoped there would soon be somebody. The Minister then apparently adverted to the fact that there was a firm here and stated in the Dáil that he had been mistaken, that there was a firm grinding spices and peppers here in the past and that they were still grinding them. The proprietor of this firm made repeated representations to the Minister that there was no justification whatever for issuing licences to his customers to import spices and peppers free of duty as he was able to supply the demand. He pointed out that he never asked for a duty, that he was quite prepared to carry on in existing circumstances as he had been carrying on in the past, but that if a duty was put on he strenuously objected to that duty being used for the purpose of driving him out of business in order to let somebody else set up in his place to carry on the trade that he had made a success of without any duty. He calls in evidence the fact that, after the Minister had been repeatedly notified that he was prepared to fill any orders that came from anybody for ground spices and peppers, as late as 20th of June the Minister was still issuing licences to his customers to import from Great Britain spices and peppers.

I now ask the House to note that the Minister stated here that he had been approached by a group of persons to put on this duty and that this group of persons said they wanted the duty on in order to establish themselves in the business of spices and pepper grinding. The Minister admitted in the course of the debate that when the duty was put on there would not be room for any more than one firm in the spices and pepper grinding business. Therefore, we are forced to the conclusion that the Minister's intention was to put on a duty for the purpose of setting up a new firm in the business and, seeing that there was only room for one firm in the business when all the business was being done here, the assumption must be that the new firm was to be the only firm and that the old firm was to be put out of business.

This unfortunate man, who built up this business, has had a similar experience in the past, because he was engaged in another business, the manufacture of rusk meal, which is part of the raw material of the sausage-making business. After he had built up a little business in that, the Government put a tariff on and brought in a British firm to wipe him out of existence, to put him out of business. Being a stalwart supporter of the Fianna Fáil Party, he said: "After all, you cannot have omelettes without breaking eggs," and he supposed he was one of the casualties in the general campaign for industrial revival. He threw off his coat and built up another business in spices and pepper grinding and he had not got under way in that fully until he is fixed with notice that the Government are going to put him out of business.

There must be limits to the injustice that may be perpetrated against individuals. This man's business admittedly is a small one. Admittedly, it is not fit to do much more than maintain him and his family. But he built it up himself; he asked for no help or tariff; he asked for no protection of any kind. He has already been put out of one business and his years of work and little capital dissipated by a tariff that brought in a big British combine to manufacture rusk meal in this country. He has now built up another little business. I want to ask the Minister by what criterion of justice he can defend smashing him again. Therefore I ask the Minister to give the man an unqualified undertaking, (1) that no further licences will be issued; if he is going to put on a tariff at all, let it operate in the ordinary way, and that is, that no licences will be issued when Saorstát sources of supply are available; (2) that the Government will provide no facilities for any firm to come in here from Great Britain and smash the little business that an Irish national has built up for himself without protection or assistance of any kind.

I believe in free competition and a fair field for everyone, but I strenuously object to our Government facilitating outsiders coming in to smash individual citizens of this State who have set up their own little business without asking help from anybody. I have no objection to the Government assisting in the development of Irish industry or in helping on in any way they can a deserving industry that may be of some use to the community as a whole, but I most vehemently object to the enterprise of individual citizens being shattered and wasted as a result of the imprudence and folly of any Minister of State. I think the Minister should have no difficulty in giving me the undertakings I ask for, and if he does the matter can be disposed of. I do not want the House to think that this matter has been raised here by a man who was desirous of embarrassing the Government. He was not. He is a strong supporter of the Government, and he went, not once but five times, to the Minister for Industry and Commerce to remonstrate with him in private in his office. He wrote to him on the 26th May and went to see him about the 5th June. He wrote personally to the Minister on the 12th June to say that he could not believe that the Minister could have personal knowledge of what was happening and that if he had he would not stand for it. In answer to that letter he got a formal acknowledgment on the 15th June. He wrote again on the 23rd June to the Minister and to the Secretary of the Department as well. He approached the Minister himself privately and confidentially at least five or six times. He had no desire to bring the business into public, and eventually he only called on members of this House to ventilate his case when he seriously made up his mind that the only alternative to calling on the public to protect him was to be wiped out of business.

As I have said, this is a man who has built up one little business and has had it destroyed already. He has now built up another little business, and the fact is that if this business is smashed he has not got either the youth or the capital on his side to face the task of building up a third enterprise. If he is smashed now he is smashed for good, and I confidently ask the House to insist that this man will be given a fair chance to carry on. He asks for no protection, he asks for no Government interference of any kind, but he does say this: that when a tariff has been imposed that tariff must not be used to induce his customers to give up dealing with him until such time as another firm can come from Great Britain to set up here and take away from him the sole means of livelihood that he and his family have got.

It is obvious that, in connection with the extensive protection policy that the Government is carrying out, difficult circumstances for individual firms must arise. Here is a firm which has been carrying on business in a small way. The total value of our imports of manufactured spices in 1935 was over £17,000. My information is that the annual turnover of the firm that Deputy Dillon has in mind did not exceed £1,000. With regard to the second firm, they were not prepared to go into the business extensively. A third firm was set up here which the Deputy has described as a British combine. May I inform him that three of its directors are nationals of Saorstát Eireann? The fourth is not; and this firm proposes to supply the entire market. Has the Deputy an objection to another firm getting the protection which is usually accorded to new enterprises? Has he an objection, during the transition period that must elapse until the new firm is properly established and is able to cater for the entire requirements of our market, to the issue of licences, and, if he has, how would that work out as regards all the other articles of commerce in which the Deputy is interested? Surely during the period that a firm undertakes to establish a business, and the point at which it is definitely established, provision has to be made by the Government to enable traders to carry on. Where are traders to get their supplies? The Deputy has stated that they can get their supplies from the firm he refers to.

My information is that there is no foundation whatever for that statement. The fact that last year our imports amounted to £17,000 and that the annual turnover of this firm was less than £1,000——

I deny that absolutely.

——seems definitely to indicate that our merchants were not being supplied. Furthermore, while for a period of a month and, possibly, some little time longer, licences were granted fairly freely, it became the rule in the Department not to grant licences after a certain stage which has now passed.

When was that?

Some time about the 26th June. Since that date, if a firm applies for a licence to import spices it has to prove to the satisfaction of the Department that it cannot secure supplies here. I have a letter before me from one firm—not, presumably, the firm that the Deputy is interested in — thanking the Department for directing would-be importers to seek supplies from a home firm. Obviously, if the firm in which the Deputy is interested is able to supply, and is recommended by the Department as a source which may be able to supply, there will be no reason for importers to seek licences if the supplies are as adequate as the Deputy maintains they are.

With regard to the question of licences, the position is that licences will only be granted, and have only been granted, from the date I have mentioned on receipt of evidence that Saorstát firms cannot supply. We all have sympathy with business people, particularly if the circumstances are as described by the Deputy. I have no information to show that this is the second venture which this particular firm has embarked on that has met with unfortunate circumstances, but what I do know is that nothing was heard from the firm in question until after the imposition of the duty.

That is not so. I must categorically contradict the Minister's statement. This particular firm has been registered for the past 12 months in the official guide.

No representations were made to the Department until after the duty was imposed, and in a letter received from, presumably, the firm which the Deputy has in mind, dated 26th May, it was definitely stated that in the short period of three years it was impossible to eliminate the competition of cross-Channel firms. Therefore, although the firm had been in operation for at least three years and had been carrying on business, it found it impossible to eliminate foreign competitors.

Hear, hear!

The Department was quite justified in putting on a tariff in view of the fact that a new company was coming into the industry, and because it felt satisfied that, with a new company, all the State's requirements would be provided from companies operating here.

I ask the Minister to read the next paragraph in the letter to which he refers, which is as follows:—

"Before giving any concessions to rival firms I should be glad to be afforded an opportunity of placing a proposal before the Minister, as my firm is now in a position to supply the whole of the Free State market immediately."

As I have said already, this man has invested every penny that he has earned during the last five or six years in providing the best machinery for grinding spices and pepper. He has nothing else in the world except what he has put into this business.

I am not in a position to say, not having personal acquaintance with the circumstances, whether the firm in question was the most efficient. What I do know is that a decision was reached that another firm were the only firm who would be capable, in the view of the Department, of supplying the Free State markets, and it was in view of the proposition made by that particular firm that the tariff was put on. The firm in which the Deputy is interested take up the attitude that because their particular business, although they are not able to supply the home market——

They are.

——is going to suffer, the Department have no right to give any assistance to another firm. I think that is most preposterous. It is as preposterous as the idea that during a transition stage the Department of Industry and Commerce are not fully justified in permitting traders, if it be necessary, to import supplies.

I say that the firm on whose behalf I speak, and the identity of which the Minister knows, is now in a position to supply the requirements of the State. Let the Minister go out and see this firm, inspect it, and if what I am now saying is not true, I am prepared to withdraw every word I have said. It is a monstrous thing that an unfortunate individual with a wife and family is to be swept out of existence by a combine coming here from Great Britain. Undoubtedly there are three Irish directors, because the Control of Manufactures Act has to be complied with, but the firm is governed and controlled by an English spice house, and everybody in the trade knows that. It is going to be run for the purpose of establishing a monopoly for a London spice house in order to control the whole trade of this country. To drive an unfortunate man into penury and beggary so as to satisfy the desires of this group of men is nothing less than a monstrous and cruel injustice.

I do not see how the Minister, in face of the letter to which reference has been made, can have the effrontery to tell this House that he is doing something desirable in bringing in another firm, avowedly to destroy this man. How public money can be used for this purpose it beats me to understand. If the man was a cantankerous critic of the Government, I could understand that he might have approached them in an irritating and offensive way and perhaps not put his case properly; but he is not. On the contrary, he is an enthusiastic admirer of the Minister for Industry and Commerce. He went to the Department believing that the Minister was misled and anxious to cover up the Minister's tracks and save him from making a mistake. What reception does he get? He gets the answer that he is going to be wiped out. I do not care what Government is in power, whether it is a Fianna Fáil Government, a Fine Gael Government or an I.R.A. Government, when a man is trying to build up a little business it is a brutal and a savage injustice to wipe him out as if he were a mere cipher on a blackboard. That man is a human being, just as the Minister and I, and the Minister has no right to wipe him out. It is a cruel and a wicked injustice and the Minister ought, even at the eleventh hour, to look into this matter and effect some remedy. I ask him to inspect the premises of William Blake, Limited, at Phibsboro' and if what I have said is not true, I shall be prepared to withdraw every word of it. It is simply cruel, if the Minister has not examined the case personally, to allow an injustice of this kind to be perpetrated against this man.

There was a protective tariff given to this industry. If this firm are able to supply requirements, why are they not doing so?

Because you are giving a licence to others to import those commodities.

We are not giving any licences except where we are satisfied that a licence is necessary and I think the Deputy ought not to question the integrity of the officials of the Department as he has been frequently doing.

On the 20th June last, you issued licences to this man's customers.

Why is he not supplying the stuff now?

He is ready to do it now.

Then why is he not doing it?

He is prepared to supply it if customers are allowed to buy it from him.

But we cannot compel customers to go and buy it from him.

No, but you have done everything you could to wipe him out.

The Dáil adjourned at 10.56 p.m. until Wednesday, 22nd July, at 3 p.m.

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