asked the Minister for Industry and Commerce if he will take steps to ensure (i) that workers employed in Irish Worsted Mill, Portlaoighise, and Salts (Ireland), Limited, Tullamore, will not be on short time, (ii) that both industries will be properly protected so that full-time employment will be given to all workers, and (iii) that as far as the mills are concerned there will be no unemployment in either area.
Ceisteanna—Questions. Oral Answers. - Laois-Offaly Mill Workers.
The present contraction of orders to Irish woollen and worsted mills, which are the main purchasers of the yarns produced at Tullamore, has already received attention. During the current quota period, the permitted importation of worsted materials of the kind manufactured in Portlaoighise has already been cut to an almost nominal figure. The recession in consumer buying, however, as well as the effects of the exceptional facilities granted towards the end of 1950 and in the early part of this year for the importation of very substantial quantities of cloth of the types made by the Irish mills are factors in the present position which will take some little time to rectify.
In view of the seriousness of this situation in Portlaoighise and Tullamore, is the Minister in a position to guarantee that these mills will be working full time, as they were up to this?
If the Deputy had been more concerned about the mills 12 months ago, when all the exceptional imports of cloth were being allowed, it would have been more advantageous.
Arising further out of the Minister's reply, will the Minister state whether licences to import material were issued with or without the consent of the directors of these companies? Were the directors aware that certain licences and facilities were being given for the import of material? Were the workers aware that certain import licences and facilities were being given?
I do not know what the point of the question is, but——
I will make it very clear to the Minister. Am I to take it that a material was imported into this country in large quantities which importation now renders impossible full-time production in both mills and that licences to import that material were issued by the Government?
By Deputy Morrissey.
Was that done with or without the consent of the present directors?
I do not want to argue that point.
That is the point I want to argue.
I propose to answer the point which I think should be answered, namely, that so long as these supplies are in the country, in a situation in which, owing to the fall in the price of raw materials wholesalers and traders are anxious to dispose of these exceptional stocks, so long will there be difficulty in getting the Irish worsted mills and their suppliers of yarn back into full production.
Mr. O'Higgins
Why do they not bring down their prices? They have done it in other countries and they were given a cushion in doing it.
That is another question which we can discuss at another time.
Mr. O'Higgins
Next week.
Might I ask the Minister for a guarantee that the unfortunate circumstances which now prevail will not recur in the future?
The action I have taken to remedy this situation is to stop the import altogether of the class of cloth which the Irish mills make.
Mr. O'Higgins
Am I to understand from the Minister's reply that the cause of the present situation is excessive import in the past?
No. The basic cause is the trade recession and the fall in prices.
Mr. O'Higgins
Is the Minister aware that imports in the year 1947 were over 8,000,000 square yards — far in excess of anything since? Is he not further aware that the present situation is the result of the slump in this industry actuated by speeches by him and by the Minister for Finance?
No speech of mine brought in 4,000,000 extra yards of cloth. That was done by my predecessor.
Eight million square yards in 1947.
Is the Minister aware that his speeches have resulted in unemployment in Tullamore?
asked the Minister for Industry and Commerce if he will state (1) if he received a resolution from the Tullamore Urban Council regarding the recent decision of Salts (Ireland), Limited, to put their workers on short time; (2) if he had previously met a deputation of the British directors of this company and if he will indicate the nature of their complaint and/or request and his own reply, and if he will now indicate what proposals, if any, he has made to this firm to help them to restore normal working conditions.
The answer to (1) and to the first part of (2) is in the affirmative.
Obviously the Deputy cannot expect me to disclose the details of my discussions with the representatives of the company beyond saying that I am at the moment considering the matter in the light of those discussions.
I may say here that I have already written to the Tullamore Urban District Council pointing out that, in my view, the present position of Salts (Ireland), Limited, would appear to be due largely to two factors, (a) recession in consumer buying and (b) the effects of stockpiling. As regards (a) this is a factor which is not peculiar to this country only, but according to recent reports is also operating in many other countries, including Britain. As regards stockpiling, it is to be remembered that towards the end of 1950 and in the beginning of the present year, in view of the possibilities of an emergency, my predecessor decided to grant greatly increased facilities to consumers in this country to import large quantities of fully manufactured cloth. The total additional quantities of woollen and worsted cloths permitted to be imported under these exceptional licences were equivalent to one full year's normal imports. Until these stocks are disposed of, the fact that they are on the hands of importers in this country must be expected to have an adverse effect on the position both of the Irish yarn producers and on the woollen and worsted manufacturers. As a step towards easing the position, the quota for the period 1st September, 1951 to 29th February, 1952, has been drastically reduced, so that only a nominal quantity of the types of cloth made by the Irish mills can be imported.
Mr. O'Higgins
Over 1,000,000 square yards.
Of what?
Mr. O'Higgins
Imported on quota now.
The Deputy must not try to misrepresent the position, because it would not be helpful.
Mr. O'Higgins
The Minister should not do it to representatives of the firms.
A quota of 1,000,000 square yards has been issued, but, of these 1,000,000 square yards, all but 75,000 square yards will be utilised to permit the importation of classes of cloth which are not made in the country. So far as cloths made by the Irish woollen mills are concerned, the quota, which is normally one for 4,000,000 square yards in the year, has been reduced to 75,000 square yards, and that is only a nominal quota.
In view of the fact, again in the case of Tullamore, that the workers employed in these mills were given no notice that they were to go on short time and that the Minister has met the British directors of the company, would it not be right and proper that, on an occasion such as this, the Minister should receive the representatives of the workers, so that the workers may be informed — they are as well entitled to know as are the directors — of any seriousness in the position?
The workers have full access to me any time they want it — not through the Deputy.
Mr. O'Higgins
I should like to know whether it is a fact that, on meeting the British directors of this company, he availed of the opportunity to indulge in a political discussion for the purpose of making political capital out of the present situation and sent the directors back to Tullamore with a message for the workers?
That is utter nonsense.
Mr. O'Higgins
I am very glad to hear it.
My discussion with the directors related in the main to an entirely different problem.
Is there any difficulty in the way of these manufacturers producing all the cloth imported?
None whatever. We will get it done yet.