The purpose of this Bill is to continue for another year the powers conferred on the Government by the Supplies and Services Act, 1946. There has been a considerable improvement in the conditions which necessitated the passing of the 1946 Act, and it has been found possible in the intervening period, and during the past 12 months, to discontinue many emergency controls. Conditions have not yet, however, improved to an extent which would justify the Government in abandoning the powers conferred by the 1946 Act. The Government are conscious of the undesirability of maintaining these special powers for any longer period than is absolutely necessary and consideration has been given to the possibility of introducing special legislation to provide specifically for controls which seem likely to be required for some time ahead.
One instance which I may mention is the foreign exchange control. The need for a control of that kind is obvious in circumstances where our currency is not freely convertible into other currencies. So long as our foreign exchange resources are limited—particularly as regards the well-known hard currency areas—it is necessary to have control to ensure that the best use is made of these resources for the general good of the community. No system of exchange control can function effectively unless it is comprehensive, because experience has shown that any gaps or weaknesses are quickly discovered and lead to the loss or misuse of foreign exchange which could otherwise have been applied to nationally necessary purposes. The preparation of legislation about exchange control which would replace the transient powers derived from the Supplies and Services (Temporary Provisions) Act, 1946, is a rather complicated matter and its introduction has not yet been possible. The exchange control must, however, continue to be operated and the Government and the Minister for Finance must have power to amend or extend the existing Orders to deal with changes in the situation according as they arise. For this reason alone, even if there were no other emergency controls in operation, it would be necessary to maintain for the present the powers conferred by the Supplies and Services (Temporary Provisions) Act, 1946.
In fact, although the supply position has improved, there are other emergency controls which it would not be practical to abolish at present.
The supply position in the case of tea, sugar, flour and bread is quite satisfactory and, if there were no other factor to be taken into account, would permit of the derationing of these commodities.
The prices of all these commodities have risen very sharply because of conditions created by the recent war and so that the full impact of these increases will not fall on consumers, very heavy subsidies are paid from the Exchequer; the total bill for which is from £9,000,000 to £10,000,000 in the current financial year. All these commodities were rationed during or immediately after the war on account of scarcity and, though scarcity no longer obtains, it is reasonable that the burden on the taxpayer for subsidies should be restricted. The burden can only be so restricted by the maintenance of rationing and so that no hardships will be inflicted on consumers, especially those in the lower wage groups, the Government have fixed the scales of the rations on a generous basis. The abolition of rationing would involve either the removal of subsidies or the extension of them to cover the full consumption. Such an extension would involve a very substantial increase in expenditure and the Government have decided that the taxpayer should not be required to subsidise consumption above the ration levels; but supplies of flour, tea, and sugar have been made available outside the rations at special prices for those who wish to purchase them.
In the case of petrol, supplies are also adequate but it has been considered undesirable as yet to abolish rationing. Deputies will be aware that there is dollar expenditure involved in obtaining our requirements of petrol and, because of the foreign exchange position, it continues to be necessary to regulate the distribution. The rationing arrangements have been modified very much during the past year and I do not think it can be said that the rationing occasions users any inconvenience worth talking about. A further simplification of rationing will take effect from the 1st January next. It has been the practice, as Deputies are aware, to issue quarterly books of petrol coupons. For the period beginning on the 1st January, books of coupons will be available which will contain coupons for each of the four quarters of the year and these books will be used as far as possible to replace the quarterly books now issued. This modification will have the advantage of facilitating consumers and, at the same time, reducing administrative expenses.
The ration of butter was increased during the year to 8 ozs. per head per week, and production for the current year was the highest for a long time past and no difficulty is anticipated in maintaining the ration at its present level.
Another control which it has been necessary to retain and which it will possibly be necessary to continue for some time at least is the building control. The main limiting factor in building operations at present is shortage of skilled labour. Without a control of some kind there is obviously danger that essential building projects would be held up through a diversion of skilled labour to non-essential work. The same consideration applies though in a less degree to building materials; for example, the cement factories are unable to meet all demands and although there is no control over the distribution of cement as such the building control has the effect indirectly of assuring supplies for essential projects. The operation of the control of building was modified during the year by the removal of local authority and subsidy houses from the scope of the control.
Another control which it is necessary to retain is that of exports. There have been substantial modifications of the scope of this control during the past year according as the supply position of different commodities has improved. But the stage has not been reached at which the power to control exports can be completely abandoned. Deputies will appreciate that this is a type of control in which a high degree of flexibility is desirable. Situations can develop quite suddenly which give rise to shortages or danger of shortage and it is highly desirable that powers should be available to meet them. Deputies are aware that the permitted export of controlled goods is allowed. So far as the Government is concerned, there is no objection to the export of certain goods so long as the goods which are being sent out are removed from export control. It is, however, obvious from the extent to which parcels are being exported that, if the export controls were altogether removed, we would run the risk of shortages at home in the case of goods which are not yet in plentiful supply. In case there are any doubts about the matter, I think it is well to say that no person, unless he has received an export licence, is entitled to send out any goods subject to export control. I want to make it clear also that every step possible will be taken to ensure that no breaches of the regulations occur.
Notwithstanding the overall improvement in supplies, there is still a seller's market in a number of commodities and that market will continue to be there so long as demand is in excess of supply. The maintenance of price control is, therefore, necessary in one form or another. The powers which are given in regard to price control by the 1946 Act have the advantage of enabling frequent adjustments of maximum price control to be made according as the supply position requires such adjustments to be made in the interests of consumers. It is true that a strong case can be made for acquiring powers of price control by permanent legislation, but until the Government has a longer experience of the conditions obtaining and when supplies become more plentiful, it has not been considered desirable to introduce any permanent legislation.
While it is necessary to seek approval of the Dáil for the retention of the powers conferred by the 1946 Act, it has been and will continue to be the policy of the Government to abandon emergency controls as soon as they can be abandoned. It is the practice to review the operation of each control periodically with a view to seeing whether it can be abandoned or, if not, whether it can be modified. A special survey was made at my instance during the course of the year of the emergency controls still in operation in order to make sure that the periodical reviews had been effective. An indication of the extent to which the policy of removing or relaxing controls has been pursued may be gathered from the fact that the rationing schemes for soap and margarine were abolished; non-subsidised flour of 75 per cent. extraction was made available and flour and bread confectionery made from it were removed from rationing; control of the distribution of kerosene and fuel oil was also abolished; the arrangements for the rationing of petrol substantially modified; restrictions on the use of bread and flour with meals in restaurants were removed; and, as I have already mentioned, local authority and subsidy houses were omitted from building control; the rationing of cocoa Order was revoked; restrictions on a number of other commodities were also revoked or modified. The list of goods removed from export licensing control is too long to read to the House, but I may say that it covers no less than 75 groups of articles. In the case of tea, it became necessary during the year to modify the rationing arrangements so as to ensure that there would be no loss of subsidy. Tea and sugar were made available for sale outside the rations, but not at the subsidised prices. A concession was also made which allowed new entrants to the retail tea and sugar trade to obtain licences. Facilities are also available for the licensing of new wholesalers in these commodities.
Prices Orders which were in existence in respect of a number of commodities, including such things as oatmeal, canned fish, rice, maize meal, paper, footwear and timber, were revoked. It is also the intention, as Deputies are aware, to remove the control on the purchase of timber from 31st March next. In addition, the number of Emergency Powers Orders still in force has been brought up to date and a list will shortly be on sale for the public at the Stationery Office. The list is too long for me to read to the House. It deals with a variety of Orders too complicated to mention now, but if Deputies have any specific questions to ask I shall give them the information they require when replying.
