asked the Minister for Industry and Commerce if he is aware that the Irish Oil and Cake Mills, Drogheda, have advised buyers of edible oils that they are unable to supply the quantities required; and, if so, if he will grant duty-free licences for the import of these oils.
Ceisteanna—Questions. Oral Answers. - Supplies of Edible Oils.
I am aware that the Irish Oil and Cake Mills, Limited, Drogheda, are unable to meet, from the products of their own refinery, the present abnormal demand for edible oils. I have already agreed that certain facilities should be granted for the importation of edible oils free of customs duty.
Will any firm that makes application to the Department get a duty-free licence?
No. At present, duty-free licences are issued only to the Irish Oil and Cake Mills, Drogheda. It is a more convenient arrangement for controlling this trade. Examination will have to be given soon to the extent to which we can make foreign exchange available for purchases.
I wonder is the Minister aware at the moment that firms manufacturing for export are obliged to pay duty for this oil? If they export the manufactured product they get drawback amounting to the same extent as the duty. That involves very considerable book-keeping and so forth in licensing arrangements, whereas if duty-free facilities were allowed in the initial application, all this unnecessary work would not arise.
The position is a bit uncertain at the moment. Demands for facilities to import this oil at present are completely abnormal and look as if they might reach a stage at which we could not attempt to finance them. My feeling is in favour of keeping the situation under control by canalising imports of oil through the existing refinery company. Whether it will be considered desirable or necessary to go beyond that and give import facilities to other firms is a matter that has not yet been decided.
Would you not consider granting free facilities to firms that had already applied before a certain date and who found, on application, that these facilities were not available? Some of these firms have in the past received licences for oil imports, and then found on making subsequent application that licences were no longer granted.
In the event of our deciding to grant unlimited import facilities that problem would not arise. If any restriction had to be placed upon the quantity imported my disposition would be to make the selection on the basis of giving facilities to firms which were more likely to develop a permanent trade.