Dáil Éireann debate -
Thursday, 15 Dec 1949

Vol. 118 No. 16

Committee on Finance. - Control of Imports (Quota No. 13) (Amendment) Order, 1949—Motion of Approval.

Parliamentary Secretary to the Minister for Industry and Commerce (Mr. Cosgrave)

I move:—

That Dáil Éireann hereby approves of Control of Imports (Quota No. 13) (Amendment) Order, 1949.

This Order relates to the importation of worsted and woollen piece goods. It is made under Section 4, sub-section (2), of the Control of Imports Act, 1934. The Control of Imports (Quota No. 13) Order prohibited the importation, except under licence, of goods wholly or partly of wool weighing seven ounces per square yard. The valued at 4/- per square yard. The operation of the quota was suspended during the war. It was reimposed on the 1st March, 1948. The amount of the quota was fixed at 3,000,000 yards annually. As it was clear that heavy importations were taking place, representations were made on behalf of manufacturers and trade unions to the effect that the business was getting into a critical condition and that employment in the industry was threatened. The quota was amended in June of this year by the deletion of the price limitation and by a reduction in the weight from seven ounces to four and a half ounces for the first nine months of the year. The effect of that amendment was not felt, mainly because commitments had been entered into and because supplies, which were ordered, only arrived subsequent to the amendment. In the first nine months, approximately 5,000,000 square yards of all types of woollen and worsted fabrics were imported at a cost of just under £2,000,000. The indications are that, as a result of the alteration in the weight and the deletion of the price limitation, the industry is now getting increased orders. The employment that is at present being given is between 4,000 and 5,000 persons. Machinery has been installed by a number of manufacturers which will enable the mills to produce cloths which have not been maunfactured in the past, mainly gaberdine cloth for raincoats and lightweight cloths for women's costumes. It is expected that the competition which will result will have the effect of keeping prices at a reasonable figure and that the quality of the goods will also be satisfactory. The present import quota was fixed at 3,000,000 yards. The quota for this part of the year, which will end at the end of February, is 1,500,000 yards.

Mr. Lemass

I take it that this Order has to be passed in the immediate future because the time limit is running out?

Mr. Cosgrave

Yes.

Mr. Lemass

We are in favour of the Order and we will facilitate its adoption here, but I think the House should be made aware that the clothing manufacturers, or a section of them, are not very enthusiastic about it. At all times there has been an obvious conflict of interests between the manufacturers of cloth and the manufacturers of clothing, arising out of the opposition of the clothing manufacturers to any extension of the protective measures for the benefit of the cloth manufacturers. That conflict of interests was not ever fully resolved, but in the interests of the protectionist policy we have to coerce the clothing manufacturers into taking the products of the Irish woollen mills in order to get the development of woollen manufacture. I think it is fair to say the woollen manufacturers were not always as appreciative of the help given to them as they should have been, or anxious to make a sufficient effort to meet the genuine needs or overcome the real difficulties of the clothing manufacturers.

The Parliamentary Secretary said that in the case of lightweight cloths competition will remedy the situation. I do not think there are so many producers of these lightweight cloths yet. There is one mill that is very efficient and I am sure there are very few complaints about the quality of its products. The clothing manufacturers want variety and that can only be assured by the introduction of a number of different producing units. The Parliamentary Secretary will want to keep pressure on the woollen manufacturers so as to ensure that they do not take advantage of the protection given to them to the detriment of the clothing manufacturers. He must see that they will produce a full range of varieties. He must supervise their quality and take whatever steps are open to him to extend the number of firms engaged in the manufacture of lightweight cloths.

It is a difficult end of the woollen trade and only in the course of time can we hope to acquire here the proficiency that exists in other countries. That will not be done by all the clothing manufacturers on their own initiative. Whatever initiative they put into it will have to be supplemented by considerable pressure from the Department of Industry and Commerce.

Mr. Cosgrave

I agree with what Deputy Lemass has said. There has been a conflict of interests. I think the Deputy will agree that one of the problems here is that most people expect the same variety in this country as is available elsewhere, and the size of the market has not in the past been sufficient to induce manufacturers to provide the degree of variety that is expected. I can say, however, that one meeting has been held between representatives of the woollen manufacturers and the traders and also between representatives of the Industrial Development Authority, with a view to seeing what steps can be taken to meet the requirement to which the Deputy refers. Further meetings will take place before the new quota is introduced in March.

Question agreed to.