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Dáil Éireann debate -
Tuesday, 20 Apr 1937

Vol. 66 No. 9

Committee on Finance. - Control of Imports (Quota) Orders.—Motions of Approval.

I move:

That Dáil Eireann hereby approves of Control of Imports (Quota No. 13) (Amendment) Order, 1937 (No. 53 of 1937), made on the 23rd day of March, 1937, by the Executive Council under the Control of Imports Act, 1934 (No. 12 of 1934).

That Dáil Eireann hereby approves of Control of Imports (Quota No. 33) Order, 1937 (No. 56 of 1937), made on the 23rd day of March, 1937, by the Executive Council under the Control of Imports Act, 1934 (No. 12 of 1934).

I might explain motions 3 and 2 together. For some years past, the importation of woollen and worsted cloth over 1/3 per square yard in value, has been subject to prohibition, and permitted only under the Control of Imports Act to the extent of the periodic quotas fixed. During the course of the past few months, however, there has been a steady rise in the price of cloth, and, consequently, grades of cloth which were previously exempted from that prohibition because they were under 1/3 per square yard in value, have since come within that category, and, as a result, difficulties were experienced by the clothing and cap manufacturers in respect of importing that grade of cloth. That difficulty could have been met by increasing the periodic quotas fixed, but that solution of the difficulty would not be satisfactory because, of course, the licences issued for the importation of cloth could be used for the importation of the much dearer grades of cloth, which are produced in the Saorstát mills, as well as for the cheaper cloths, the importation of which it would be designed to facilitate. Consequently, we have decided to meet the difficulty by amending the quota order so as to increase the exemption limit from 1/3 to 2/- per square yard, and, at the same time, have made a new quota order in respect of cloths between 1/3 and 2/-.

That device enables us to meet the reasonable requirements of the clothing and cap manufacturers, while, at the same time, continuing the protection given to the woollen manufacturers here. A comparatively small quota will be fixed for cloth over 2/- per square yard and a large quota for cloth under that value. In fact, there will be for the present, at any rate, no restriction of imports at all upon cloth under 2/- per square yard. In due course, that class of cloth may be manufactured here, in which case the quota order would be operated differently, but at the present time the Saorstát manufacturers are manufacturing cloth from 2/- per square yard upwards, and it is only in respect of that class of cloth that the quota restrictions will operate to limit imports. In respect of the cheaper cloths, there will be no such limitations. This arrangement was entered into after discussion with the clothing manufacturers and cloth manufacturers, and I think it will operate to the satisfaction of both parties.

The Minister seemed to say that this situation was being met by extending the quota order to exclude all these cloths up to 2/-.

He also said that he was making another quota order for cloth between 1/3 and 2/-.

Up to the present, all cloth over 1/3 has been subject to the restriction. Because of the rise in price, however, cloth which we wish to come in has become subject to the restriction, and we have amended the original order to make it apply to cloths over 2/-, and have made a new order in respect of cloths between 1/3 and 2/-, so that there will be two seperate quotas. In respect of one of these, the licences can only be used to import cloths over 2/-, and, in respect of the other, licences to import cloths under 2/- but over 1/3.

Will the Minister say whether there is any prospect that at an early date something may be done to produce the cheaper cloths here? I think the Minister has referred on previous occasions to the possibility of that type of cloth being manufactured here. Is it proposed that this new mill at Portlaoghise should undertake the manufacture of the cheaper types or that the Athlone factory may go into production in that particular line?

The Athlone factory will be engaged for the present, at any rate, and for some considerable time, in the production of cotton cloths, which are of a different class. We have been pressing the woollen manufacturers to produce some of the cheaper grade cloths, and they have, in fact, come down in the value of the cloths they are producing, until now they are producing many types suitable for the clothing manufacturers, but there is still a very substantial importation, amounting to 2,000,000 square yards a year, of cloths of types which the clothing manufacturers cannot produce. That importation will not be eliminated until substantial additional plants have been installed for that purpose.

Does the Minister contemplate that any of the existing mills may be induced to undertake the manufacture of such type of cloth?

Not to any appreciable extent.

We are giving protection to existing mills which are producing a high grade cloth. Is it not possible to induce these people, in return for the substantial protection they are getting from the State, and incidentally from the consumer, to enter into production of this cheaper type?

I do not know that it is practicable to make both the cheaper cloths and the dearer cloths in the same mill.

Is it shoddy the Deputy is asking about?

Shoddy and cotton mixtures.

The Minister said he does not think it is possible to produce the cheaper grades of cloth and the dearer grades of cloth in the same mill, but there are now a substantial number of woollen mills in the country, and mill owners are doing pretty well under the tariffs imposed by the State to assist them. Is it not possible for the Minister to induce these people to come together in a type of mill removed from their existing mills, and thus enter into production of the type of cloth which is bought by our people to the extent of 2,000,000 square yards per annum, and which the State recognises must continue to be bought by our people.

I think it may be possible to do that ultimately.

Question put and agreed to.
The Dáil adjourned at 10.30 p.m. until 3 o'clock on wednesday, 21st April.
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