I move:—
That a sum not exceeding £30,707 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending the 31st day of March, 1950, for Salaries and Expenses in connection with Gaeltacht Services, including Housing Grants and the purchase and sale of Homespuns.
The main Estimate for Gaeltacht Services this year has been prepared without provision for expenditure which will arise consequent on the legislation enacted by the Housing (Gaeltacht) (Amendment) Act, 1949. It should be appreciated, therefore, that the provision in the main Estimate will be increased by the amount being provided in that respect in a Supplementary Estimate. The main Estimate at £110,707 shows a decrease of £20,023, £2,760 of which relates to the insertion for comparison purposes in last year's figures of a sum in respect of "Increases in Remuneration" which was not, in fact, required. If this £2,760 be ignored the decrease in the Estimate would appear as £17,263 and all but £1,963 of that amount would be offset by the amount being provided in a Supplementary Estimate. Except where otherwise indicated, my remarks from now on will deal with the main Estimate.
The total amount estimated for expenditure is £93,327 less than the comparative figure for last year, while the estimated receipts are £73,304 less. If payments made directly out of receipts from the sales of rural industry products are taken into account it will be seen that a total expenditure of £410,718 is provided for and that gross receipts amounting to £330,011 are hoped for.
The activities of the Gaeltacht Services Division cover rural industries, marine industries and Gaeltacht housing as well as certain miscellaneous services. The Gaeltacht Services Vote provides for the maintenance of these activities—the D sub-heads of the Vote providing for the rural industries, the E sub-heads for the marine industries, the H sub-heads for Gaeltacht housing and the G sub-head for the miscellaneous services. Of the other sub-heads of the Vote, sub-heads A, B and C provide for the expenses of administration and sub-head F for the expenses of Gaeltarra Éireann—the Central Marketing Depot. Receipts which in the main represent the proceeds of the sale of the products of the various industries are dealt with under sub-head I.
The rural industries include spinning and dyeing of woollen yarns, hand-weaving of millspun yarns, the purchase and sale of homespuns, the manufacture of knitwear, rugs, embroidery, leather gloves and toys.
The spinning and dyeing industry is carried on at Kilcar, County Donegal. where a factory has been established and is being equipped with various carding, spinning, dyeing and finishing machinery. Expediture on this machinery is provided for under sub-head D (5), which also covers requirements for the knitwear industry. The estimate for expenditure at £13,300 is £8,700 less than the provision last year and this decrease is largely due to the fact that it is now necessary to provide only for the balance of the machinery to be installed and current requirements.
The manufacturing materials, mainly wool and yarns, necessary for the carrying-on of the spinning and knitting industries and for the manufacture of rugs, gloves and embroidery are purchased with money provided under sub-heads D (6) and D (9) of the Vote. The amounts estimated for expenditure during the current year are: D (6), £70,886, and D (9) (1), £25,625, as against £93,450 and £41,325, respectively, provided for expenditure last year—a total reduction of £38,264. Considerable stocks of both wool and yarns are on hands and accordingly it will not be necessary to purchase as heavily this year. Yarns previously purchased are now being provided by the Department from wool purchased, and this factor also has the effect of reducing requirements for materials.
Sub-head D (10) provides for the purchase and sale of homespuns. The amount provided for expenditure this year is £11,500 as compared with £49,600 for last year, but it must be understood that last year's provision was practically untouched. The market here for homespuns has virtually disappeared of late but every effort is being made to develop new markets. The Department now has very large stocks on hands and further large-scale purchases cannot be undertaken while these stocks remain unsold. A limited provision for purchases has, however, been made and, if the Department succeeds in making substantial sales out of present stocks, the proceeds will facilitate the making of further purchases if such course is considered advisable.
The toy-making industry is carried on in four centres—in Crolly, County Donegal, and Elly Bay, County Mayo, where dolls and soft toys are manufactured; in Spiddal, County Galway, where leaden models are manufactured; and in Casla, County Galway, where a factory has recently been equipped for the manufacture of composition articles, such as dolls' heads and hard body parts for supplying the toy factories in Crolly and Elly Bay. The factories at Crolly, Elly Bay and Casla are maintained by money provided under sub-head D (8) of the Vote. The amount estimated for expenditure this year is £40,830 as against £50,620 for last year—a reduction of £9,790—which is largely due to the fact that we shall now be manufacturing our own composition articles from raw materials instead of importing them—as we had to before the establishment of the Casla factory last February. The reduction is also partly due to a reduction in our requirements of toy-making machinery on which we propose to expend £1,450 this year as against the £4,040 provided last year.
I am glad to be able to report that the position of this toy-making industry continues to be satisfactory in spite of difficult trading conditions.
The factory in Spiddal, County Galway, where the leaden models are being manufactured, is maintained by money provided under sub-head D (12). The amount estimated for expenditure during the current year under this sub-head is £9,900 as against £15,100 last year—a reduction of £5,200. This industry is going through a difficult period and provision for expenditure has been made on the basis of last year's transactions.
Certain general expenses—mainly transport and fuel—proper to all the rural industries are paid for out of sub-head D (7) of the Vote. This year's Estimate shows an increase of £695 over the amount provided last year due mainly to increased provision for freight and packing materials.
Sub-head D (1) provides for payment of the wages of the technical staffs of the various rural industries, such as the skilled tradesmen in the factories and the manageresses of the various knitting and embroidery centres. These wages have almost all been substantially increased last year and the current year's Estimate shows an increase of £1,051. Certain wages in connection with the rural industries are also paid out of sub-head D (2), which shows an increase of £40; D (3), which shows an increase of £28; D (9) (5) (spinning industry), which shows an increase of £505; D (10) (4) (homespuns), which shows a decrease of £400; D (11) (2) (dyeing industry), which shows an increase of £492; and D (12) (2) (leaden models), which shows no change from last year's figure.
However, by far the greater number of the workers employed in the rural industries are paid directly out of receipts and it will be seen from sub-head I (1) (a) that the amount estimated for payment of workers wages in this way during the current year is £94,850. This is £9,650 less than the amount estimated last year, but events proved that last year's Estimate was too great.
The marine products industries are at present confined to the purchase and sale of seaweeds. The participation of the Department in the food carrageen industry, which is carried on by some private firms, has been discontinued and the relevant sub-head E (4) has been omitted from this year's Estimate. Last year a sum of £620 was provided but no expenditure was incurred.
Money for the purchase of seaweeds is provided under sub-head E (3) of the Vote. The total provision for the current year is £34,350, as against a sum of £36,500 provided last year—a reduction of £2,150. The decrease in the provision under E (3) (1) is due to a much more conservative estimate from one of our customers as to requirements. The kelp industry is virtually finished and only a token sum of £50 has been provided for its purchase.
Sub-head F (2) provides for advertising and publicity and it will be observed that it is proposed to increase expenditure on this activity from £2,000, as provided last year, to £7,000 as estimated for the current year. Marketing conditions are extremely difficult at present and efforts to improve sales will be made by intensifying publicity at home and abroad.
The I sub-head provides for gross receipts during the year of £330,011, as compared with last year's estimate of £414,165. The decrease relates in the main to receipts from sales of products of the rural industries, but trading conditions last year being far from favourable the receipts, which had been estimated for at £375,400, were not realised. A more conservative estimate of receipts from the rural industries has therefore been adopted for the current year in the sum of £293,700. It is estimated that £104,850 will fall to be met out of these receipts for workers' wages and agents' commission and on that basis the net receipts would amount to £188,850. The net receipts to be accounted for, however, are shown as £150,850 due to an arrangement by which net receipts over and above that sum would be accounted for as Exchequer Extra Receipts rather than as Appropriations-in-Aid.
The receipts provided for from the sale of seaweeds are £1,513 less than those provided for in last year's Estimate, but in this respect it will be observed that the provision under sub-head E (3) for expenditure shows a somewhat similar decrease. The other headings under which receipts will be accounted for require no special explanation.
The H sub-heads of the Vote provide for expenditure in respect of the salaries and travelling and other expenses of the outdoor staff engaged on Gaeltacht housing sub-heads H (1) and H (2); the payment of grants under the Housing (Gaeltacht) Acts (sub-head H (3)); and the maintenance and repair of certain teachers' residences in the Fíor-Ghaeltacht (sub-head H (4)). The main Estimate shows a decrease in the provision in these respects of £2,750 the whole of which may be stated to relate to the provision for housing grants under sub-head H (3). Last year the provision made was £4,000 but the actual expenditure was far less than that. The provision now made in the main Estimate is lower than the amount spent last year but, for all practical purposes, it may be regarded as provision for only a small portion of the current year pending the enactment of amending legislation to increase the amount of the grants and the adoption of a Supplementary Estimate for expenditure under the amending legislation. The amending legislation has now been enacted and as stated in my opening remarks a Supplementary Estimate is being prepared which will increase the amount required by Gaeltacht Services by £15,300.
This Supplementary Estimate will provide for an additional £600 under sub-head A of the Vote for salaries and wages of the administrative staff; an additional £3,260 under sub-head H (1) for the salaries and wages of the outdoor housing staff; an additional £1,840 under sub-head H (2) for travelling and miscellaneous expenses of that outdoor staff; and an additional £9,600, making £10,850 in all, under sub-head H (3) in respect of the payment of grants under the Housing (Gaeltacht) Acts, 1929 to 1949. In all the circumstances it is thought that the provision of £10,850 under sub-head H (3) will be sufficient to meet claims falling to be made under the amended Acts during the first year of operation.
The year just finished has been the most difficult trading year experienced during the post-war period but strenuous and sustained efforts are being made to develop new markets for the Gaeltacht Services products and there are indications that these efforts will meet with success in the near future.