You will observe, Sir, that Section 3 repeals sections of the Principal Act referred to in the sections of this Bill, and that includes Part V of the Principal Act in toto. The Principal Act contains one section which requires the Minister to publish in the Iris Oifigiúil certain relevant facts relating to the licence conferred on the entrepreneur to manufacture cement and to import it. That obligation is now removed and the Minister is no longer under an obligation to publish these particulars. I want now to ask the Minister some questions so that he may have an opportunity of answering questions which he would have answered by the advertisement in Iris Oifigiúil if this section were not passed. The first is a question of price. It is true that cement has been controlled by a cartel. I want to give the Minister an opportunity of denying something which I am not sure he will be in a position to deny. Cement has gone up in the last two years by, I suppose, 15/- to 20/- a ton. So far as I am aware the history of that increase in price is as follows:— The Minister began this system of levying a tariff on incoming cement by prescribing a licence fee. He put on a 5/- nominal fee in order gradually to raise the price of cement so that when the Irish product came on the market, the shock to the consuming public would not be too great because at that time he foresaw that Irish manufactured cement would cost much more than the imported cement. When he put on the first 5/- nothing untoward happened. But he then gave the signal that he intended to put on another 5/- at some stage with a view gradually to stepping up the price, whereupon the cartel intervened and said:—
"Now, look here, if you are going to go and put on 5/- a ton, we ourselves will put on 5/-; why should the Irish Treasury collect this 5/-. We are prepared to quote cheap cement in order to keep out Spanish and Polish cement to which the Minister referred; but if the Irish Government proposes to levy a general tariff of 5/- over and above what they are already levying, we will spare them the trouble."
And they did. Accordingly, they got word somewhere of the figure that was in the Minister's mind with regard to Irish cement and they stepped up the price of cement until they have reached a figure that they knew the Minister wished to arrive at. The result is that the cartel is now, and has been during the last 12 months, charging us £1 a ton more for cement than it would have charged us only for this interlude, and more than it is at present charging Great Britain. That represents £320,000 a year of an overcharge on this country. That is going into the pockets of the cartel.
Deputy Corish recently said that the fee of 5/- a ton was a very trivial matter in the cost of a house. It is true that if the fee was not more than 5/- a ton that would mean not much more than 30/- in the cost of a labourer's cottage. But the fact is that if you add to the licence the additional price charged by the cartel in anticipation of another licence fee here you will find that that will bring the additional price of the cement up to about £1 a ton. This works out at about £6 in all in the cost of a labourer's cottage. If one had an additional £6 to play about when building a labourer's cottage, one could do a good many things that one cannot do now. If this cement scheme had never been brought about, we would be getting cement at a low price. There is no doubt about that, for the cartel would keep down the price lest Spanish and Polish cement might establish a market here. That class of cheap cement never got a hold in the market here. That was a thing the cartel never allowed to happen. I know that the cartel would freely bleed us in the price of cement, but there is one thing they would never do and that is to induce us to look for a cheap cement in other markets. For that reason they were compelled to bring the price down to a low level so that nobody in this country would find it worth his while to venture on bringing a cargo of cement from Spain or Poland. They knew that the moment they forced the price up here, that was likely to happen. They kept a certain stock of cement in the country. If there is a large stock of cement at an inflated price, it would pay somebody to bring cement from the port of Daynia in Poland or from some port in Spain. So long as the price of cement was kept down everyone would go on dealing with the cartel. While I admit that the cartel can do something to abate the consumers' normal advantage, there are limits to which it cannot go. Because if they try to raise the price too much, cement flows in from other sources. I have reason to believe, and I suggest, that this increase in price was made with the knowledge and tacit approval of the Minister for Industry and Commerce. If that is true, I think the Minister has to bear a very heavy responsibility, because in order to cover up the increased cost of manufacturing cement in this country he is permitting and, in fact, officially encouraging the cartel to plunder the Irish consumer of cement, 70 per cent. of which cement was used in the erection of labourers' cottages and public buildings. I invite the Minister to deal with that question fully in anticipation of the repeal set out in the Schedule to this Bill because he will not have an opportunity of dealing with that matter when Iris Oifigiúil comes to be published.
I have repeatedly urged on the House that there can be no effective regulation of prices for cement unless there is regulation of quality. One of the obligations, under Part V of the old Act, was that the Minister had to publish in Iris Oifigiúil the quality which he required the cement manufacturer to produce. The Minister, when questioned by me on the Second Stage of the Bill, said that the quality he had in mind to impose on Cement, Ltd., was one superior to the British standard. My recollection was that in fact commercial cement always exceeded the British standard, and the Minister or some Deputy said that his belief was that the British standard had been brought up to the average level of commercial quality cement. That is quite wrong. No modern cement industry in the world at present is trying to sell cement of the British Engineering Standards Association specification of 1925 and, if they did try to sell it, nobody would buy it. I had these figures in my hand when the Principal Act was passing through, and I have since found them. I want to put them on record so as to give the Minister an opportunity of dealing with them.
The British Engineering Standards Association specification is, first, in respect to fineness and the residue, on a sieve, 180 x 180 mesh to the inch, 10 per cent. maximum. The residue, in the case of an ordinary commercial sample of cement is only 3 per cent. Again, on a sieve 76 x 76 mesh per inch, the residue, under the British Engineering Standards Association specification, is 1 per cent. maximum, while the residue in the case of good quality cement is a trace. That shows the immense superiority of ordinary commercial cement. The second test is for soundness. The British Engineering Standards Association specification provides that the expansion, by the Le Chatelier test, shall be 10 millimetres maximum while the same test for an ordinary sample of commercial cement gives one millimetre expansion. The setting time is the third test. Here the British Standards specification provides 30 minutes' minimum for an initial set, whilst the time for an initial set, in the case of ordinary commercial cement, is four hours five minutes. In the case of a final set, the British Standards specification provides for a ten hours' maximum, and in the case of ordinary commercial cement the maximum is five hours ten minutes. There you have an immense superiority, on both these tests, of ordinary commercial cement.
Now, we come to what is, in my judgment, the most important of all tests, that is the tensile test. The British Engineering Standards Association specification for the tensile test provides that the breaking strain in lbs. per square inch of briquettes, measuring one inch by one inch, per section, shall be a minimum of 600 lbs. on a briquette seven days old, made of neat cement. The commercial test for a similar briquette is 946 lbs., more than 50 per cent. superior. For three parts sand and one part cement, the British Engineering Standards Association specification for seven days is 325 lbs. minimum and for 28 days 366 lbs. minimum. That is very important, that the British standard only requires a very modest increase in tensile strength over these vital three weeks of early setting. In the case of ordinary commercial cement, the specification provides, for three part sand and one part cement, a tensile test of 478 lbs. for seven days, rising to 616 lbs. for 28 days, which represents an improvement of about 100 per cent.
I direct attention to these figures because I apprehend that Cement, Ltd., will come forward with the British Engineering Standards Association specification of 1925 and say to the Minister: "If we produce cement for you which is equal to that specification, at the price which you fix as the price of good cement, we are filling the bill and we are giving the Irish consumer as good a cement as he has been getting outside at a price fixed by you." That would not be at all true. The commercial article at present being sold here is 50 per cent. superior to the minimum British Engineering Standards Association specification, and it is of vital importance to every consumer of cement in this country that that superior commercial specification will be insisted upon when the Minister arranges with Cement, Ltd., the type of cement that they will produce. That is the second question.
The third question arises out of something the Minister said in his concluding remarks when he stated that the quantity produced by Cement, Ltd., is going to be fixed. Why do you want to fix the quantity that they produce? Is there no hope ever of selling any abroad, or do we anticipate that the cost of producing cement in this country will be always so much higher than that at which it is produced by the cartel that we will never be able to compete in the markets in which the Poles and the Spaniards are at present competing? I am not sure that this is relevant, but the Minister also said that it is his intention to limit the profits. I take it that that will be a condition imposed on the company. What, then, is the stimulus left to Cement, Ltd.? What difference is there between Cement, Ltd., and any Government Department, if you are going to limit the profits? I see no advantage at all in having this individual enterprise system if you limit profits, because the only justification left for it is then promptly swept away.
I submit that the matters I have referred to are of vital importance to the country and that it is essential that the Minister should take this opportunity of giving this information which he otherwise would have been obliged to give us in Iris Oifigiúil at the appropriate time. In connection with the price, which was the first matter mentioned, when the Minister comes to deal with that he might answer an important question that arises. Supposing when Cement, Ltd., come into production in two months' time and the price of Irish cement is fixed, that it is substantially in excess of the price ruling at the present time, what will the position be of persons who have contracts to deliver cement? Secondly, what will be the position of persons who have contracts for the completion of large building schemes, whose ultimate contracts for the building depend on the price that has been tendered by the supplier of cement? Does the Minister propose, by statute or regulation, to amend all these contracts and, if he does, has he power to do it, and where?