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Dáil Éireann debate -
Tuesday, 5 Jul 1938

Vol. 72 No. 3

Committee on Finance. Financial Motions. - Imposition of Duties (Confirmation of Orders) Bill, 1938—Second Stage.

I move that this Bill be read a Second Time. As Deputies are aware, the Emergency Imposition of Duties Act of 1932 provides that any order made under that Act, that is to say, an order not merely revoking an order previously made — ceases to have statutory effect upon the expiration of eight months from the date upon which it is made, unless, in the meantime, it has been confirmed by an Act of the Oireachtas. A number of orders, made in accordance with the powers conferred under that Act, are proposed to be confirmed by this Bill. The first of the orders mentioned in the Bill requires to be confirmed before the 6th August, as otherwise the order would cease to have effect upon that date. The other orders were made on various dates, and are not so urgent, but, as has always been the practice, advantage is taken of the first suitable occasion in the Dáil to submit them as early as possible for confirmation here. Deputies, no doubt, are aware of the effect of the various orders set out in the Schedule to the Bill.

Order reference No. 1 relates to the duty upon certain woven piece goods, linen and cotton. The duty upon these goods was increased by the order, and certain exceptions, which applied in respect of the original duty, were removed. Since the order came into force, the duty upon linen piece goods has been reduced arising out of the Trade Agreement with the United Kingdom. The orders under reference Nos. 2 and 3 were in a sense consequential upon the order referred to under reference No. 1. They were designed to preserve the same margin of difference between the protection given in respect of the cloths dealt with under the first order, and the articles made from these cloths which are dealt with in the other two orders. Order under reference No. 4 affected a minor change by imposing a duty upon heads for hoes. Order under reference No. 5 increased the existing duty upon certain classes of hollow-ware. Order under reference No. 6 imposed a duty of 45 per cent. upon certain classes of woven tissues which were not previously subject to duty in consequence of the commencement of the manufacture of these new classes of cloth here. Order under reference No. 7 imposed a duty upon certain classes of component parts of sparking plugs — that is, parts made wholly or mainly from porcelain. Order under reference No. 8 imposed a duty upon certain classes of electrical apparatus, the manufacture of which was commenced in this country a short time ago by a firm which established a factory for the purpose in the County Louth. Order under reference No. 9 varied the duty previously in existence upon certain classes of domestic ware such as teapots, coffeepots and similar articles. Order under reference No. 10 was designed to create a licensing provision in respect of the duty upon certain toys the manufacture of which was proceeding in this country, but not to a sufficient extent to enable the total requirements of the country to be met.

If there is any further information which Deputies require in connection with these orders, I am in a position to give it. Some of the duties are, of course, of minor importance. The orders under reference Nos. 1, 6, 8 and 9 are of most importance, and if Deputies require a more elaborate statement from me concerning these, I am prepared to give it.

The Minister indicated that only one of these orders was near the time of its termination. I do not think the Minister should apologise for asking the House to pass these Emergency Imposition of Duties Orders at the earliest possible moment after they had been issued. The Act under which they were issued was one that was introduced in order to protect industrial manufactures in this country because of the recent economic war. When the Act was introduced the plea was made for it that it was of an exceptional and emergency nature, and I think the suggestion was made that the operation of it would be limited: that it would not be continued after there was necessity for it. The economic war is over. The Minister has already informed the Seanad — at least there was this implication in his statement — that this is magnificent and handy machinery for dealing with the imposition of tariffs. There was the suggestion that he has no idea at all in his mind of getting rid of it. There was the suggestion that it was going to be the normal way, except perhaps during the months of March or April or the months of April and May, for dealing with all matters relating to tariffs where they were being imposed or changed. I do not want to quarrel too much at this particular stage with that point of view, but I do want to say that, if in normal circumstances this machinery for imposing tariffs is going to be retained, then I think the sooner after an order has been issued the Dáil is asked to give statutory effect to that order the better. I think that in the new circumstances that is absolutely necessary.

I would ask the Minister, when closing the debate, to elaborate on orders under reference Nos. 8 and 9. Whether tariffs are imposed for revenue or industrial protection, I think it is important to have them reviewed thoroughly in a parliamentary way. When the Minister reviews the position with regard, say, to certain woven piece goods and decides either to change or impose a tariff in respect of them, a certain number of very elementary considerations must be present to his mind, such as whether the order is for the protection of an existing Irish industry or to increase employment in an industry. The House should be told why exactly the tariff is being imposed. I think that, in the new circumstances, when orders of this kind are presented to the Dáil there should be a formal statement from the Minister as to why the duty is being imposed, the effect of it, as well as any other necessary information with regard to the industry which the Minister is in a position to give, such as whether additional prospects are expected in the line of employment from the industry by the imposition of the tariff.

The Minister, I am sure, will agree that it is unreasonable to impose a tariff by means of the Emergency Imposition of Duties order machinery which tells nothing at all as to the reasons for imposing the duty except what the future duty will be. It is unreasonable, I think, that that is the only information which Deputies should get, and that the Minister should ask the House to pass the order without giving to it a certain amount of formal detail with regard to the order: the reason for it, and what is expected from it. In order that a proper discussion may take place on the Committee Stage of the Bill, it is essential that Deputies should have in their hands a brief formal statement, such as I suggest, and what I am putting to the Minister is that we should have that formal statement on the Second Reading.

The Minister has indicated that the duties imposed under orders reference Nos. 8 and 9 are important, and that if required to do so he is prepared to make a more elaborate statement concerning these. I think it is important that we should have that further statement from him so that we may have all the information the Minister can give before the Committee Stage of the Bill is taken.

I agree with the Deputy that it is desirable that orders made under the Emergency Imposition of Duties Act should be brought forward for confirmation by the Dáil as soon as possible, having due regard to the state of parliamentary business and other considerations of that kind. In fact we have adopted that practice in the past. For obvious reasons, it has been necessary to wait until more than one order had to be confirmed so that the time of the Dáil would not be unduly taken up. Consequently, the practice has been to wait until one order has been followed by others and bring the whole block forward in this way. Deputy Mulcahy should not be misled by the title of the Act under which these orders are made. It is true that special circumstances existed in 1932, when that Act was introduced as a Bill and passed, but circumstances in this country are always such that it is necessary to have certain powers to act quickly as regards the imposition of protective tariffs. We are a small country. Our geographical situation is such that it is very easy to import goods quickly, and experience has shown that it is practically impossible to prevent news spreading whenever any new industrial project is mooted. The spreading of that news is followed by action on behalf of persons engaged in the importation and distribution of goods of the kind concerned with a view to stocking up. They have little difficulty in doing so quickly because of the circumstances to which I have referred. It would seriously impede industrial development and, perhaps, even jeopardise the possibility of proceeding at all with certain projects if the discussion and completion of plans could not be followed up fairly early by action to impose whatever restrictions on imports had been decided upon. In the ordinary course we try to keep tariff proposals for submission to the Dáil at the time of the Budget. Wherever practicable we have done that, but in other cases earlier action may have to be taken. The Dáil may not be in session or it may be fully occupied with other business. In such circumstances, it is desirable to have the powers which this Act confers. I should strongly advise against the repeal of the Act. I am quite certain that any Government dealing with industrial projects here would find it necessary to have some such powers. I do not say that they would find it necessary to have precisely the powers which this Act gives, but they would require some powers to take action when action was required, whether the Dáil was in session or not.

With regard to the particular duties to which Deputies referred, I mentioned more than two. I mentioned four which were — shall I say — of major importance. Certainly they are of greater importance than the other ten orders set out in the Schedule to the Bill. These orders are contained in references (1), (6), (8) and (9). Order No. 131, set out in reference No. (1), imposed a duty of 40 per cent., or 4d. per square yard, on linen, cotton and union woven piece goods of various categories and, as I have already mentioned, removed from the list of exemptions to the then existing duty certain descriptions of piece goods — that is to say, piece goods which had been subjected to a process of proofing involving the use of rubber or rubber solution and not less than 14 ounces weight per square yard, cotton piece goods, with certain exceptions, of less than 4 ounces in weight per square yard and union piece goods containing a quantity of silk or artificial silk. The 40 per cent. or 4d. per square yard, whichever was the greater, applied to all these classes of goods until the Act confirming the Trade Agreement with the United Kingdom was brought into force. The effect of that was to reduce the duty on all linen piece goods to 20 per cent. The object of the duty was two-fold — to give special protection to the home mills in respect of classes of cloth which they were specially equipped to make and to offset certain increased costs of production which had arisen here, to some extent in consequence of the conditions of employment legislation but more directly in consequence of an award given by a Wages Tribunal established in 1937 which Deputies who were then in the House will, no doubt, remember. The effect of the duty has been to encourage the increased production of these goods and to afford increased employment in their production. The number of persons employed in the manufacture of these goods in March of the present year was 1,190.

The duty referred to in reference No. (6) will, perhaps, be familiar to certain Deputies and remind them of a discussion we had here concerning the establishment of a new mill to manufacture certain classes of woollen tissues not previously manufactured here — the mill at Portlaoighise. That mill has come into production and, because it was engaged in the manufacture of classes of cloth not previously made here, an alteration of the scope of the duty had to be effected, the particular alteration being the reduction from 7 ounces to 5½ ounces in the weight of cloths per square yard to which the duty applied. Previous to the making of this order, cloths under 7 ounces in weight per square yard were not subject to duty. Now, cloths down to 5½ ounces per square yard are liable to duty. The manufacture of the cloths has only begun and full production has not yet been accomplished but, apparently, the project is proceeding very satisfactorily.

The order referred to at No. (8) imposes a duty upon certain classes of electrical apparatus — electrical water heaters, radiators, tubular heaters, fire irons, and so forth. A company was established for the production of these goods here. It has established its factory at Ardee, in County Louth, in the station premises of the Great Northern Railway Company which are no longer used for passenger traffic. At the outset, the company proposes to confine its activities to the assembling of these classes of electrical apparatus from component parts but, as their programme proceeds, the manufacture of certain of the parts will be undertaken. The company has only now started production and is engaged in the task of training its workers and running in its machinery. It will have to secure a considerable increase in output before it will be able to meet anything like the full requirements of the country. The import of these goods in 1937 was valued at £250,000 so that there is considerable scope for their production here, apart from the fact that the demand for this class of goods is continually increasing.

The next order altered the duty upon certain glazed articles, that is to say, tableware, teapots and coffee pots and other classes of glazed earthenware articles, all of which had been subject to duty previously. There were two firms manufacturing on a large scale here, one at Arklow and one at Carrigaline, under the protection of the original duty, but during the course of 1937, very considerable competition developed against them from Japan and also, to some extent, from Great Britain, from which countries second quality goods were imported here at low prices. As Deputies who are familiar with the operation of a pottery are aware, the goods produced have to be classified after they are made. Those which turn out good quality are regarded as first class and those which turn out to be inferior in some way are regarded as second class, and these second-class goods are frequently disposed of by large potteries at very low prices. Consequently, it was decided to check the importation of these goods by the imposition of the minimum duties for which this order makes provision. At the time the order was made, one of the potteries to which I refer had closed down and the other was carrying on only with considerable difficulty, but in consequence of the order, both factories are now in operation and, according to the latest returns, about 470 persons are employed in them, so that Deputies will note that it is an industry of some importance from the employment point of view. In fact, there was in relation to that particular order considerable public agitation to have it made before it was made. It was delayed for various reasons for some time and one of the concerns had actually reached the stage of having ceased production before it came into force.

The other orders, as I have mentioned, are of minor importance. In fact, Nos. 2 and 3 were consequential upon No. 1. The variation of the duties upon linen and cotton cloths involved a variation in the duties upon articles made of linen and cotton cloths. The order at reference No. 4 relates to heads for hoes, which were not previously subject to duty. The order at reference No. 5 increases to some extent the existing duty upon certain classes of hollow-ware, the increased duty being necessitated by the expansion of imports of these goods to the detriment of the concern making them here. The order at reference No. 7 was designed to impose a duty upon certain classes of sparking plugs, that is, porcelain sparking plugs, in order to protect the manufacture of sparking plugs which has been undertaken here quite successfully by two firms, one in Dublin and one in Galway. The order at reference No. 10 made no change at all in the duty, but merely imposed a licensing provision. I think I promised in the Dáil that licensing powers would be taken in relation to that duty because it was clear that the existing concerns manufacturing these articles were not yet producing sufficient to supply the full requirements of the market. Consequently, the balance had to be imported subject to the duty, which was fairly high. Now licences are being issued whenever it is clear that adequate supplies from home sources are not available.

Question put and agreed to.
Committee Stage ordered for tomorrow.
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