Dáil Éireann debate -
Thursday, 17 Dec 1953

Vol. 143 No. 15

Private Business. - Control of Imports Orders—Motions of Approval.

Mr. Lemass

I move:—

That Dáil Éireann hereby approves of:—

Control of Imports (Quota No. 10) Order, 1934 (Road Vehicle Bodies) (Amendment) Order, 1953.

This motion relates to an amendment of Control of Imports (Quota No. 10) Order. The House may remember that some time ago they confirmed an Order amending that quota Order by including within its scope bodies of commercial road vehicles. Subsequently the O.E.E.C. maintained that these quota restrictions, in so far as they related to complete bodies of commercial vehicles, were incompatible with this country's commitments in regard to the liberalisation of trade. On consideration of that position the Government decided to revoke the Order. These bodies are in any event subject to 50 per cent. ad valoremduty. This Order, therefore, which the Dáil is being asked to confirm now is one revoking the Order which was confirmed some months ago.

Mr. Morrissey

Does that leave the same measure of protection in a different form?

Mr. Lemass

Yes. Body balloons, which are the main constituent parts of motor vehicles imported for the productionof motor vans, are still subject to quota regulation and all parts are subject to 50 per cent. duty.

Mr. Morrissey

The Minister is satisfied that they are covered to get the desired results?

Mr. Lemass

Quite satisfied. The protection is still adequate.

Mr. Hickey

If the position is as the Minister has stated, what redress have we if it is found in the course of six to eight months that there is unnecessary and unfair competition with our industry?

Mr. Lemass

If we wanted to deal with that by way of quota Order, we would have to withdraw from our liberalisation agreement with the O.E.E.C. or seek to get the consent of that organisation to the imposition of quantitative regulation of imports because of some special circumstance but, outside that agreement and outside the O.E.E.C., a situation of that kind could be dealt with by adjustment of tariffs.

Mr. Hickey

This is a very big Order. We are talking about liberalisation of trade with highly industrialised countries.

Mr. Lemass

There is a tariff of 50 per cent. in operation.

Mr. Hickey

They could jump that by certain means and leave us in the lurch.

Motion put and agreed to.

Mr. Lemass

I move:—

That Dáil Éireann hereby approves of:—

Control of Imports (Quota No. 13) (Artificial Silk Piece Goods Amendment) (No. 2) Order, 1953.

The House will also recollect that some time ago it approved an Order amending Quota No. 35 by bringing within its scope woven piece goods containing more than 85 per cent. of weight of artificial silk staple fibre. Quota No. 13 relates to woollen and worsted tissues. The market for woollen andworsted goods of that kind produced here was being limited by the importation of these fabrics containing artificial silk staple fibre. It was to check that development that the quota Order was amended but it was found by experience that limiting the prohibition to fabrics which contained 85 per cent. of artificial silk staple fibre was not sufficient, that these fabrics were still being brought in to an extent which was prejudicing the development of our own woollen and worsted industries. Consequently, an amending Order was made extending the scope of the quota to these fabrics when containing not less than 40 per cent. of artificial silk staple fibre and it is that amendment of the quota Order which the Dáil is now asked to approve.

Brendán Mac Fheórais

This Order is undoubtedly a step in the right direction towards the protection and development of the Irish woollen and weaving industry. One can appreciate the steps which the Minister is taking to give protection and encouragement. The last Order left a loophole, as the Minister has admitted. My information is that this particular Order will not do the needful. Importers and manufacturers evaded the last Order very successfully and I am informed that since the Order came into operation they have taken steps to evade this one. The Order refers to artificial silk staple fibre. There is evidence—whether the Department have it or not I do not know—that there is a new synthetic fibre produced which is not covered by this Order and does not come under the description of artificial silk staple fibre. It is a protein fibre. I would suggest, therefore, that the Minister might change the Order from artificial silk staple fibre and merely make it in respect of artificial fibre, which would bar the importation of a cloth so based on a protein fibre. Whether I have made myself clear or not I do not know, but I believe that if that change were made the industry would welcome it.

Mr. Lemass

I will look into that. I should like to make it clear, however, that, in my view, cloth containing artificial silk staple fibre should beavailable here, and I have asked the Woollen and Worsted Manufacturers' Association to consider the formulation of plans for its production here. I would regard this practice of curtailing the imports of that cloth as merely a temporary arrangement designed to prevent the market here being upset pending the formulation of plans for its production here.

Mr. Morrissey

Hear, hear!

Mr. Lemass

The cloth containing this silk staple fibre is, I understand, of very inferior wearing qualities, but I do not think that that is a reason why we should permanently exclude it from our market if we cannot get it made in the country. On the question of the possibility of other forms of artificial fibre being used in the same way as silk staple fibre to produce worsted or woollen cloth, I will have that examined.

Question agreed to.

Mr. Lemass

I move:—

That Dáil Éireann hereby approves of:—

Control of Imports (Quotas Nos. 13 and 45) (Amendment) (Moquette and Plush) Order, 1953.

This Order extended the scope of Orders relating to cotton fabrics to include moquette and plush. It follows upon the commencement of manufacture of moquette in this country. It is at present being produced by a firm operating at Birr, County Offaly. I understand that another firm is also entering the same business at a factory in Fermoy, County Cork. The capacity of the existing firm now in production is at least equal to the requirements of the country, and I understand that it contemplates engaging in an export trade at a later stage. It was, however, necessary to extend the scope of the quota Order so as to bring this commodity, which had previously been excluded from the quota, within its scope. Because of a difficulty raised by the Revenue Commissioners in distinguishing between moquette and plush—they are both used as furnishing fabrics—the Order had to be expressed as applying to plush also, but in practicelicences under the quota Order are issued for the importation of all reasonable requirements of plush. Plush is not at present made in the country.

Mr. Hilliard

Will the Minister say if the firms now commencing operations in the manufacture of moquette and plush intend to cover the full range of production in those cloths? As I understand it, at the moment, anyway, they are only commencing operations in one range of those goods, and the people engaged in the furniture trade will find a certain amount of difficulty in the transition period in regard to the purchase of this material from the home manufacturers. They have been in the habit, apparently, of purchasing moquette from Belgium and other countries, and they purchased it at a very cheap rate. I am informed, anyway, that the firm engaged in this business is only interested in the dearer or more expensive type of moquette, and that unless it produces the cheaper types the price of furniture in this country—at any rate furniture in which moquette is used—will be very much increased. I wonder if the Minister will have another look at this matter with a view to facilitating people in this trade until such time as the firms that are now commencing operations in the manufacture of moquette will go into manufacturing all the lower priced material?

Mr. Lemass

So far as plush, which is the more expensive type of furnishing fabric, is concerned, it is not being produced here at all by any firm in the country, and for plush imports facilities are being given; but in relation to moquette the intention is to produce here a full range of qualities, and all the moquette required and normally used in the country. There was a conference held in the Department only within the last few days between the manufacturers and the users of this commodity, and there was the usual argument as to whether the price should come down before the full trade was given to this firm or whether the full trade should be given to it before the price came down. Up to the present we havebeen issuing import licences fairly generously for moquette, which were in fact based upon the ratio of three pieces imported for every one piece produced at home. Now the Birr factory is fully equipped and its present output is sufficient to satisfy the whole of the market requirements, and these facilities are being withdrawn. I anticipate and, in fact, intend to ensure that when the full production stage is reached the benefit of the lower costs will be passed on to the users of the fabric in the lower prices.

Mr. Morrissey

I am very glad and, indeed, pleasantly surprised to hear from the Minister that the factory is now in a position to meet the entire requirements of the home market. That is certainly news to quite a number of people, and as far as I am concerned it is pleasant news. I would like, however, to be absolutely assured that this does not mean that the volume of output is equal or more than equal to the volume or quantity of moquette used in the country irrespective of the various qualities and prices. It is not much use to us to be told, for instance, that their output in respect to the higher priced moquette is adequate to meet the home demands in respect of that particular quality. Furniture is not only an essential requirement, but furniture-making is one of our most important industries. There is no question about that. It is widely spread throughout the country and, I think, gives a pretty large volume of employment. While we want to ensure, as far as possible, that the raw materials required for furniture-making and finishing are produced within the country, at the same time we have, of course, to be careful that we are not taking steps that may impact adversely on a very important existing industry. Goodness knows, furniture nowadays is expensive enough for the ordinary person without it being made more expensive. I do not want to be taken as suggesting that when this factory gets into production, and is put into a position of having almost guaranteed to it the entire home market, it will take advantage of that for the purposeof charging higher prices than it should.

What I really got up to say was that I am not at all satisfied that in order to have some technical difficulty resolved for the Revenue Commissioners, we have to put plush, which we are not making and which we do not intend to make, on an import licence basis. I am very strongly against that. I think it is a serious step to take. I am not satisfied that some other method to enable the Revenue Commissioners to solve their difficulty in this matter as between plush and moquette could not be found. I do not think that we should make it more troublesome to import plush if we do not propose to make it ourselves. I would ask the Minister to take another look at that. I know there are difficulties very often concerning those matters that it is not easy for the Minister to put entirely before the House but I think he will agree with me that it is not desirable, if it can be avoided, merely for a technical reason to have this arrangement.

Mr. Briscoe

I should like to ask the Minister if he is satisfied that the manner in which these Orders are framed or the wording of the Order may not bring about the same evasion in this particular matter as in the case of cloth. The material may be described as piece goods and so forth. Is he going to take steps to prevent importers bringing in cut up material which will come in in a form distinct from the material described in the Order? In the debate on the Minister's Estimate I think I drew attention to the fact that in the case of ordinary cloth there was very substantial evasion of the protection by people who were bringing in cut up material. I want to draw attention to the fact that this allows a very large loophole and that the Minister should make it clear that moquette is moquette whether it is in the form of piece goods or in cut up form intended for the purposes of the furniture industry.

Mr. Lemass

The aim in framing the Order in this way is to give it the effect that is precisely intended. I will notsay that we are always successful in that and the number of amending Orders which have to be made from time to time is some indication of the difficulties which are encountered. We have to have regard to difficulties of the ordinary customs officer in making a distinction between one type of fabric and another. Obviously it would be impossible without bringing in expert advisers or carrying out certain scientific tests for a customs officer to make that distinction. If the Order is to be effective it must cover both types of fabric, even though it is intended that imports of plush should not be restricted.

Mr. Hickey

We are not manufacturing plush?

Mr. Lemass

No.

Mr. Hickey

We should not allow any opportunities to people to import moquette as plush if we are to protect the furniture factories.

Mr. Morrissey

You must give the people some choice.

Mr. Lemass

Plush is far more expensive and it is not likely that the factories will use plush for moquette. Plush is used principally for cinema seats and other types of furniture which is subject to fairly constant wear. With regard to output my information is that the firm in Birr is at present producing at a rate which is the equivalent of our annual consumption. The intention is to install a capacity of three times the country's requirements. The balance, after supplying home needs, will be exported. I understand that another factory manufacturing moquette will be in production in Fermoy in a couple of months and the position then will be that production will considerably be in excess of home market needs. That in itself means that competitive prices will be charged. There will be two firms in the industry, the second one having come in knowing that there is a firm with a capacity in excess of the country's requirements already in existence.

Mr. Morrissey

The point I want to make is that there are, as the Ministerknows quite well, very wide varieties of moquette in use in this country over a wide range of prices. It is used in various types of furniture and for the cheapest type of fireside chairs. In that way, you can buy one chair for £4 4s., while another one may run up to £12 12s. The moquette used in the upholstering of a particular chair plays the biggest part in the difference in price. So far as the wood is concerned, there would, of course, be a difference between beech and mahogany. What I am putting to the Minister is: is he satisfied that, not because of overcharging but because the manufacturers fail to produce the cheaper quality of moquette, the cheaper type of furniture now available to people will not be available in future?

Mr. Lemass

It is the intention to produce all ranges of moquette.

Mr. Morrissey

That may be the intention, but I wonder whether that goal is going to be reached.

Mr. Lemass

They are at that goal now.

Mr. Morrissey

That answers my fears.

Mr. Finan

What is the comparative price of the home-produced moquette and the imported variety?

Mr. Lemass

Up to the present the price of home-manufactured moquette has been higher than that of imported moquette. The explanation of the manufacturers was that they were only utilising one-third of their intended productive capacity. They say that when they are utilising the full productive capacity prices will be completely competitive. In fact, at that stage they will have to export a large amount of their production.

Mr. Briscoe

Would the Minister answer the point I made?

Mr. Lemass

That point has been already considered.

Question put and agreed to.