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Dáil Éireann debate -
Tuesday, 7 Jul 1953

Vol. 140 No. 4

Imposition of Duties (Confirmation of Orders) Bill, 1953—Second and Subsequent Stages.

I move that this Bill be now read a Second Time. The purpose of this Bill is to confirm 11 Orders made by the Government under the Emergency Imposition of Duties Act. Deputies will have learned from the explanatory memorandum what these Orders were about. Two of them imposed new protective duties on stainless steel couplings and cotton tapes and bindings. Eight of them extended the scope of existing duties in certain respects and one related to television sets and reduced the duty in operation on television sets.

I should like to give a brief account as to why the Orders were made. The manufacture of stainless steel couplings was begun by a well-known Dublin firm and although that firm has an established reputation it was felt that they would not be able to make headway against existing trade connections without the aid of a protective duty having regard to the fact that these goods were ordinarily supplied by very well-known firms in Great Britain. The business cannot be very extensive as the value of the market for these goods is estimated at about £16,000 per year. In the case of television sets there was a duty of 75 per cent. (full) and a 50 per cent. preferential with certain minimum duties. The practice had developed under which licences for duty free import were given to firms engaged in the sale ofradio sets and to other traders wishing to import television sets for experimental purposes and not for resale. That practice was an undesirable one. It left open the possibility of charges of discrimination and preferential treatment and it was considered preferable to reduce the duty to 37½ per cent. (full) and 25 per cent. (preference) without a provision for importation free of duty under licence. There is no protective purpose in that duty. It operates solely for revenue purposes.

The next Order related to plastic hair slides and combs. It excluded from the existing duty combs made from metal, glass, wood, stone or mother-of-pearl. Combs made of these materials were admitted free of duty as they were not made here. They have now been excluded from the scope of the duty. The Order also brought within the scope of the duty plastic hair slides. The effect of the change is not likely to be considerable. Tarpaulins were subject to duty heretofore when impregnated with tar or pitch. Recently tarpaulins impregnated with other chemicals have been imported and the scope of the duty has been extended to cover tarpaulins which are impregnated with any chemical including tar and pitch. There was no duty previously on cotton tapes, bindings and webbings. Irish manufacturers claim to be able to supply the full market needs for these goods but they are at a slight handicap in competition with outside firms because of the smaller quantities of them normally made in one run in Irish factories. Protection, on that account, was deemed to be necessary.

The Order relating to artificial silk piece goods extended the scope of the existing customs duty on these goods by reducing the minimum price specified in the original Order from 1/6 to 1/3 per square yard and by reducing the width limit so specified from 60 inches to 53 inches. The manufacture of artificial piece goods has, of course, developed very considerably here and the extension of the scope of the duty, by reducing these limits, was considered desirable to increase the protection to these firms. There are eightof them at present engaged in the manufacture of these goods.

The next Order relates to babies' napkins, knickers, pants and certain sanitary clothing. The position in that regard was that the cloth from which these goods are made is subject to duty here, and previously these goods were held to be subject to duty also, but a recent decision of the Revenue Commissioners that they were sanitary ware, instead of articles of clothing, excluded them from the duty so we have remedied that position by bringing them back again.

So that they are now dutiable. I think that is a bad thing.

They are manufactured here in adequate supplies and the cloth from which they are made is also manufactured here. With the development of the cotton spinning industry in this country, it now becomes possible to extend the scope of protective duties to include doubled cotton yarns. In July of last year, restrictions were placed on the imports of single cotton yarns, but as the process of doubling yarns has developed it is considered desirable to assist it by the imposition of a protective duty. The Irish manufacturers are not yet making a full range of doubled yarns and, consequently, duty free licences will be issued for those grades that they are not producing until the full range of yarns is being manufactured here.

The next Order relates to iron and steel bars and sections. That duty extended previously only to bars and sections of certain sizes, and the effect of the new Order was to extend the sizes of the bars and sections subject to duty. The position with regard to the steel mills at Haulbowline is that, with the passing of the peak demand for their products, it is desirable to endeavour to extend their range of production in order to preserve employment there. The mills have recently began to produce these bars and sections of slightly larger and slightly smaller sizes than they hadproduced previously and which heretofore were not subject to duty.

The extension of the duty on unprinted paper was the one which gave, perhaps, more concern and difficulty than any of the other duties to which these Orders, now to be confirmed, relate. When the original protective duty on paper was imposed in 1939, this business of manufacturing printing and writing papers was only commencing in this country, and it was limited in its scope. Since then, various changes have taken place in the industry which have made it necessary to reconsider the whole scope of the duty, and this new Order brings within the duty certain classes of papers which were previously excluded from it. In the first place, the weight of the paper to which the duty relates was reduced from 12 lb. to 9 lb. per ream, and then specialised papers, like limitation art paper, printing paper containing mechanical pulp, featherweight esparto printing paper, tinted printing paper, writing paper, cream wove bank paper, twinwire cartridge duplex paper, pasting paper, tinted bank paper and manifold bank paper, were all brought within the scope of the duty.

The position had arisen that, because of technical developments in the industry abroad, many of these classes of paper which have previously been excluded from the duty were being imported and used in substitution for the papers made here, whereas developments are taking place here to enable the mills to undertake the manufacture and making of these additional classes of papers. The position developed last year that a rather serious falling off in employment in the industry occurred. One large mill was, in fact, closed down for an extended period. It was in that situation that I undertook the reconsideration of the whole scope of the duty in consultation both with the paper manufacturers and with the representatives of the printing trade and other trades for whom this paper is a raw material.

It is still necessary to keep the situation under review, and arrangements have, in fact, been made for the employment of industrial consultantsto see what can be done to extend the scope of manufacture and improve the manufacturing processes employed here. In the meantime, arrangements are being made with the printers' associations to ensure that no special difficulties will develop for them during this interim period. I am hoping that, as a result of discussions between the representatives of the paper manufacturers and the printing interests, any difficulty still existing will, in the course of time, be ironed out. The manufacture of paper is an industry which we, naturally, would like to develop in this country because of its considerable future possibilities, and now that it is being given the fillip of this widened duty there is no reason why it should not go ahead, subject to the utilisation of the most modern techniques which we hope to secure by reason of the technical assistance project which is being initiated.

The Minister said he consulted with the newspaper proprietors and the newspaper interests. Were the provincial newspapers represented?

The duty is not effective on newsprint.

Has there been some recent change?

Newsprint for newspaper use is admitted free of protective duty. There is, I think, a small revenue duty which has always applied.

I think it was the increase in revenue duty I had in mind.

That has always been in operation. The final Order relates to root crop knives. We had a duty upon edge tools, scythes, sickles, slashers, bill-hooks and hay knives before the war. It was suspended during the war and representations were made for its restoration. Its restoration was decided upon and at the same time the scope of the duty was extended to include root crop knives. That is why the matter has to come before the Dáil. Reimposition of duty has not brought back the scope of activity here to thepre-war dimensions but it is getting back there. There is, of course, no reason why it should not continue particularly as my information is that the prices at which these tools are made and offered for sale here are lower than the prices of comparable imported tools.

I have given that brief outline of the effect of all these Orders. If there is any further information Deputies want I shall be glad to give it. Most of these Orders are comparatively small in their effect. The only two that might be regarded as of major importance are those relating to cotton ply yarns and to printing materials.

I do not think there will be any opposition to this measure. The Minister mentioned in his introductory remarks two new duties in respect of stainless steel couplings and cotton goods. Could the Minister say what additional employment is being provided as a result of the amendment of protection in connection with these goods? The Minister also mentioned that it had been decided to reduce the duty in respect of television sets rather than grant duty free licences. Do I understand from that that it is possible now for an individual, as distinct from assemblers or wireless manufacturers, to import television sets or are they obliged to operate through the wireless assemblers? Can the Minister say if television sets are manufactured here?

The only other two matters I wish to mention are these. Complaints were prevalent that in respect of artificial silk piece goods, the manufacturers were not able to supply the requirements. I understand that developments were contemplated which would supply the market requirements here and that extensions to the manufacturing capacity of a number of concerns were in the course of construction or development. Can the Minister say if these complaints have ceased and if he is satisfied that the industry is now capable of meeting the demand? I do not know whether he has any particulars which would show to what extent increased employment has been provided as a result of the extension.

Similarly in the case of the duty on paper he referred to the fact that because of paper imports one of the mills was obliged to close and a number of hands had been let go. He mentioned that although this duty has been imposed he is not yet certain to what extent they have been able to meet competition. I wonder has he any information concerning the restoration of their positions to those who were formerly employed? In connection with the duty on root crop knives, can the Minister say how prices compare with prices of knives imported and, again, if additional employment has been provided?

In respect of the last item to which Deputy Cosgrave referred, that is, root crop knives—and I suppose I may include in it the Order in connection with edge tools generally—I wonder if, as in the case of the newspaper business, the Minister had consultation with those concerned. I think there is only one firm really in this business. I am sure he had some sort of initial consultation, but was there any final consultation or was there any sort of agreement on the part of the manufacturer that such a duty was adequate for the protection of this line of business?

With regard to the edge tool industry as carried on in Wexford town —I think it is the only place in Ireland where edge tools are manufactured on any great scale—I would urge upon the Minister to keep his eye on this particular industry. Part of it has been revived and the edge tool business has been extended there. If there is any protection the Minister could give to provide employment and generally to expand this business further I would urge that he keep this particular Order in mind. If there is a case for amendment, after representations by the employers, he ought to give it sympathetic consideration. The firm engaged in this business has met hard times in the last number of years and that is one branch of the industry which should, as I have said before, provide increased employment.

I would like to know from the Ministerhas he any information as to the prospects of quick supplying from Cobh in respect of iron and steel bars, that is, rounds and rods, squares and angles of increased dimensions. The experience of the foundry in Wexford in respect of these particular items of iron and steel is that in some cases, not generally, supply has been slow and they have been forced on occasions to seek permission, sometimes with success and sometimes without success, from the Department of Industry and Commerce or from the Department of Finance to look for these particular items elsewhere. I am sure they would have no objection in the wide world to continuing, as they have been doing in respect of the smaller sizes, to obtain them from Cobh but on the understanding that they would be readily and quickly available.

I will deal with the various points raised. So far as the stainless steel couplings are concerned, the Deputy will appreciate that I have some difficulty in discussing the employment position because only a single firm is concerned and Deputy Cosgrave is at present in a position to get all the reliable information concerning it. It is a business which was only recently started and which, I am sure, can be developed on a greater scale than that which it appears to have reached at present.

So far as television sets are concerned, it was, of course, always open to anybody to import a television set on payment of duty. The duty-free facility was given only to traders and people importing them for experimental purposes and not for resale. It will still be open to anybody to import a television set subject to the payment of the reduced duty and no special permit or authority will be required. I understand that there is one firm experimenting at the present time with the manufacture of television sets but it will perhaps not be able to make headway until certain decisions are made here as to the future of television, if it ever comes to this country.

There are different characteristics in the television broadcasting systems of different countries and a decision willneed to be taken fairly soon as to what form we will adopt here, if ever, before more progress in the manufacturing end can be made.

Is a decision likely to be reached?

The Minister for Posts and Telegraphs, I know, has it under very active consideration at the moment. He has been naturally reluctant to take that decision in advance of the time when he could foresee the establishment of a television broadcasting station, but the importance of taking it early has been impressed upon him and he realises it fully.

So far as art silk goods are concerned, the manufacturers state that they are able to produce the entire home market requirements of the classes of art silk goods which are now subject to import duty. There has been a rather noteworthy increase in employment in the firms concerned in the production of these goods in recent months, but whether that was due to general trade conditions or the operation of this Order it would be difficult to say.

With regard to paper, the large firm which had closed down last autumn has, of course, reopened, and is now actively engaged in production again. Arrangements that are being made for technical investigation of the industry will, I hope, not merely improve existing production methods to the extent that they require improvement, but also open up new possibilities for the industry.

Is it an E.C.A. technical mission?

No. There are no E.C.A. missions now. There is a technical assistance Vote.

Is it under that?

It is under that Vote that any technical assistance project will be launched.

So far as these edge tools are concerned, my information is that the price at which the Wexford-made toolsare available is lower than the import price, irrespective of duty. The present import duty is 25 per cent. (flat). That was the duty before the war, which was brought back into operation again. In these circumstances, it should be adequate because it is required only to divert orders to Wexford where, in our information, better value is obtainable, anyhow. I should think that once the position has been restored that the business flows naturally to Wexford then it should develop substantially.

I think they merely want a chance to launch the sale.

Once it starts moving in that direction, it will continue in that direction and the aim will be to get the whole of the available market, whatever it is, met by our home suppliers.

Again on that point, any of these duties can be revised at any time?

Certainly.

They are not periodical.

No. At any time and on representation from the interests directly concerned they would, of course, be reconsidered. The purpose of the duty is to increase the volume of business of the home concerns and thereby permit of their lowering their prices. If they were looking for a higher duty to offset an increase in price, we would be far more critical of the application than we would of one designed merely to permit of more efficient production and lower cost.

With regard to deliveries from Irish Steel, I do not think there is any problem there at the moment. It is true that Irish Steel has been endeavouring to work on the basis of producing against orders so that the stock they had to carry would be kept at a minimum. A stock of steel bars represents a substantial investment ofmoney and, of course, Irish Steel Limited has no capital. They are working upon a bank overdraft. I hope to have before the end of the year proposals for the reorganisation of the capital structure of Irish Steel, a reorganisation which would be desirable in any event but which would be necessary in future, particularly if they are to work upon the basis of supplying orders from stock and investing money in stocks. At the present time, however, there is substantial stock there and I am sure deliveries can be made without delay.

Question put and agreed to.
Agreed to take remaining stages now.
Bill put through Committee and reported without amendment, received for final consideration and passed.
Bill certified a Money Bill for the purposes of Article 22 of the Constitution.
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