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Dáil Éireann debate -
Thursday, 20 Apr 1950

Vol. 120 No. 6

Land Bill, 1949—Recommittal. - Control of Imports Orders—Motions of Approval.

I move:—

That Dáil Éireann hereby approves of the Control of Imports (Quota No. 43) Order, 1949.

There are four Orders mentioned on to-day's Order Paper, but I understand that the confirmation must be moved separately for each. They all deal with the same matter, so I take it that we can have one discussion on them. These motions are to confirm the Quota Orders relating to the importation of woven cotton piece goods, as required by Section 4 (2) of the Control of Imports Act, 1934.

Before the war, cotton piece goods were subject to a duty of 60 per cent. full, 40 per cent. preferential and as an alternative to a review of these duties by the Prices Commission in accordance with the terms of the Anglo-Irish Trade Agreement of 1938, the Irish and British cotton industries entered into an agreement whereby the Irish market would be reserved for the Irish cotton mills in the types of cloths in which they then specialised. This agreement was implemented through the making by the Irish Government in June, 1940, of four Quota Orders (Nos. 39, 40, 41 and 42) under the Control of Imports Acts, 1934 and 1937, covering all classes of piece goods containing more than 60 per cent. by weight of cotton and not exceding 10 ozs. in weight per square yard. These quotas were suspended from the 24th July, 1941 in order to facilitate the importation of cotton fabrics which were then in short supply.

With the return to normal conditions regarding supplies of cotton yarns and cotton piece goods, representations were made by the cotton weavers here (represented by the Linen and Cotton Textile Manufacturers Association) and their workers (represented by the Irish Transport and General Workers' Union) for the restoration of protection to the cotton industry. The Manufacturers' Association urged that protection be afforded by the making of new Quota Orders in accordance with a revised agreement arrived at between the British and Irish manufacturers of cotton piece goods. This agreement which was supplementary to the agreement made in 1939 provided for an extension in the range of cloths to be reserved to Irish manufacturers while at the same time reserving the balance of the market substantially for goods of British manufacture.

The production of cotton piece goods by the Irish mills, which reached its peak figure of 17,000,000 square yards in 1940, was running at the end of 1949 at the rate of approximately 12,000,000 square yards annually. This figure represented only one-half of the capacity of the mills and even at this low rate stocks were at that time accumulating. Because of the continued suspension of the protection afforded to the cotton industry, employment in the Irish mills was being adversely affected by imports which continued to take place at a high level. Imports in 1947 amounted to 40,000,000 square yards, in 1948 to 24,500,000 square yards, and in 1949 to 33,500,000 square yards. The measure of protection sought by the cotton mills would, it was stated, have the effect of enabling production to be increased to about 25,000,000 square yards of cloth annually with an increase in employment of between 500 and 600 operatives.

On the 13th December, 1949, the Government made four Quota Orders (Nos. 43, 44, 45, and 46) prohibiting except under licence the importation of woven cotton piece goods containing more than 60 per cent. by weight of cotton. The Orders took effect as from the 1st January, 1950.

It is too early yet to gauge the actual effect of these controls on employment in the cotton industry here but the number of operatives engaged should be very considerably increased when the mills are producing the country's full requirements in the types of fabrics to which protection has been afforded. Imports of cotton piece goods during the first two months of 1950 (which are the latest figures available) and during the same two months of previous years show that there were substantially increased imports during the January-February period of this year. The high figure of imports immediately following the imposition of the quota controls is due in part to the fact that special facilities were granted to importers to enable them to clear consignments of cotton piece goods which had been firmly ordered before the 1st January, 1950. Imports should however show a gradual decline for the month of March and ensuing months.

The period beginning on the 11th February, 1950, and ending on the 31st May, 1950, was appointed to be the first quota period under each of the Quota Orders and quotas were appointed under each of them, the quantities mentioned to be goods manufactured in the countries stated.

The quantities set aside for importation from the various countries were determined in relation to the trade in cotton piece goods carried on with each of these countries during the year 1949. The year 1949 was adopted as being the most normal and up-to-date period which could be selected having regard to the dislocation of trade during the war years and the gradual easement of the supply position in the post-war period.

One of the main difficulties which has so far occurred in the administration of the quotas arises from the inclusion under Quota No. 43 of unpatterned poplin shirtings which are manufactured by the Irish mills only to a very small extent and of repp shirtings and cellular shirtings which are not produced here at all. It is stated by the shirt manufacturers that the demand for unpatterned poplin shirts has increased tremendously during the last 12 months and it has been found necessary to meet the requirements of the shirt manufacturers in these types of cloths by the issue of special supplementary licences. The possibility of having unpatterned poplin shirtings manufactured here in greater quantities and variety or alternatively of excluding these shirtings as well as repp shirtings and cellular shirtings from the scope of Quota No. 43 is at present being examined.

Would the Parliamentary Secretary explain what may be a purely technical matter. There seems to be some increase in the amount of cloth to be imported under these quotas in relative periods, in the years 1947 and 1948 and the present period. It may be due to an alteration in the manner in which they are calculated. The figures I have here would show that in a corresponding period of 1947 less than half the amount of cloth was to be imported as compared with the present period order about which he has spoken.

During 1947 the earlier agreement was suspended, as the Deputy knows, so far as imports were concerned. Under this agreement, approximately 80 per cent. of the market here is reserved on the basis of imports in 1949 for the Irish mills and the balance from Britain. Now in addition, as a result of experience during the war years and particularly in post-war years, certain quantities have been imported from the Continent. Under these various quota Orders, on the basis of the 1949 imports quantities are reserved to Britain and also to various other countries.

I do not know whether the Deputy wants the actual figures. In the first quota period it was 1,000,000 square yards under Quota 43—600,000 from Britain and the balance from Belgium, the Netherlands and other countries. Under Quota 44, it was 80,000 square yards from Britain and 20,000 from elsewhere. Under Quota 45, it was 2,800,000 square yards from Britain, and the balance from the Netherlands, Belgium, the United States and elsewhere. Under Quota 46, it was 8,000,000 square yards from Britain, and the balance from the United States, the Netherlands, Belgium and other continental countries.

Question put and agreed to.

I move:—

That Dáil Éireann hereby approves of Control of Imports (Quota No. 44) Order, 1949.

Question put and agreed to.

I move:—

That Dáil Éireann hereby approves of Control of Imports (Quota No. 45) Order, 1949.

Question put and agreed to.

I move:—

That Dáil Éireann hereby approves of Control of Imports (Quota No. 46) Order, 1949.

Question put and agreed to.
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