Dáil Éireann debate -
Tuesday, 18 Apr 1950

Vol. 120 No. 4

Imposition of Duties (Confirmation of Order) Bill, 1950—Second and Subsequent Stages.

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

I move that the Bill be now read a Second Time. The purpose of the Bill is to confirm an Order made by the Government on the 23rd August, 1949, increasing the minimum rates of duty on wallpaper with effect from the 26th August, 1949. The duties in operation prior to the latter date were introduced in 1939 following a review by the Prices Commission and were as follows: full, 20 per cent. ad valorem or 1½d. per linear yard; preferential, 10 per cent. ad valorem or 1d. the linear yard, whichever was the greater in each particular case. In common with all other commodities, the prices of wallpapers have risen steeply since 1939 and the minimum rates, which in this particular duty are the operative rates, had lost most of their protective value with the result that the home industry was suffering severe competition from imports. It was, accordingly, decided to increase the minimum rates of duties per linear yard from 1½d. (full) and 1d. (preferential—United Kingdom and Canada) to 3¾d. and 2½d. respectively. There is a separate revenue duty of 5 per cent. ad valorem on wallpaper which is, of course, additional to the protective duties I have already mentioned.

The manufacture of wallpaper is carried on at present in Kildare and Bray and gives rise to appreciable direct employment in these two areas. In addition, the manufacture of wallpaper provides a market for paper produced by the Irish paper-making industry. Wall and ceiling papers are items for which there will always be a steady demand and I think that Deputies will agree that it is in the national interest that production of these items should be encouraged as much as possible.

Under the provisions of the Emergency (Imposition of Duties) Act, 1932, the Order covered by the Bill expires on the 22nd April, 1950, unless previously confirmed by Act of the Oireachtas. I should say that the delay in bringing in this measure is due to negotiations which took place with other parties. Those negotiations took a considerable time and consequently it was not possible to introduce the Bill before the Recess, and I would be glad if the Dáil would agree to deal with the matter as one of urgency.

Mr. Lemass

Would the Parliamentary Secretary give us some information in regard to this revenue duty of 5 per cent? When was it put on, why is it being kept on and what is the exact difference between it and the main duty?

Mr. Cosgrave

I understand that it is an old duty dating back to 1932, 1933 or 1934 and that it applies to all paper including newsprint. The amount of revenue from it is comparatively small and it includes the various categories of wallpapers included in the tariffs mentioned in this Order. It is additional to these duties.

Mr. Lemass

Would the Parliamentary Secretary suggest to the Minister for Finance that it should be abolished as it causes unnecessary complication?

Mr. Cosgrave

I will suggest it to him.

Mr. Larkin

In connection with the imposition of these duties there are two matters which I would like the Parliamentary Secretary to clear up. I understand that following on the increase in the duty the manufacturers of wallpapers here laid down certain conditions regarding supplies. These conditions had the result of securing certain average prices in relation to the numbers of orders that might be made and the manufacturers were not prepared to make supplies available to retailers if the average prices fell below a certain figure. One of the results would be of course practically to eliminate the small retailers.

Mr. Cosgrave

I understand that that has been withdrawn.

Mr. Larkin

With regard to the importation of wallpaper, would the Parliamentary Secretary say that his Department is satisfied that there is no evasion of the protective value of the imposition of duties as far as Irish manufacturers are concerned by reason of secret rebates and commissions? This matter has been drawn to the attention of the Department before. This is a very serious matter insofar as by means of these various arrangements it is possible to import wallpaper and evade the full effect of the duty, and this has a very detrimental effect with regard to the manufacturers of Irish wallpapers. Is he satisfied that that is being covered?

Mr. Cosgrave

I am not aware of any complaints such as the Deputy mentioned. As the Deputy is aware, this is a complicated duty in so far as there are very great varieties in wallpapers and it is difficult to operate so as to give adequate protection. We have no information of secret rebates, and I imagine it would be very difficult to get information. It is the experience recently that the quality and variety have improved considerably and the home manufacturers produced recently new books which show a considerable improvement in comparison with anything produced before.

One of the difficulties is that the paper base which the manufacturers purchase is dearer than the base which their competitors purchase in England and that is an initial disadvantage. If the Deputy has any particulars which would enable these matters to be investigated we would be very glad to have them.

Question put and agreed to.

Bill passed through Committee, reported without amendment, received for final consideration and passed.

Bill certified a Money Bill within the meaning of Article 22 of the Constitution, Seanad Éireann to be notified accordingly.