I move:—
That a sum not exceeding £5,017,170 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1957, for the Salaries and Expenses of the Office of the Minister for Industry and Commerce, including certain Services administered by that Office, and for payment of certain Subsidies and sundry Grants-in-Aid.
The total Estimate of £7,525,170 for Industry and Commerce for the year 1956-57 compares with a total sum (including supplementaries) of £8,071,380 granted for the year 1955-56. The provision for this year, therefore, shows a net reduction of £546,210 as compared with the provision for last year. The principal increases in the Estimate are in the provisions for salaries, wages and allowances of the headquarters of my Department (sub-head A), grants to Bórd na Móna for housing (sub-head M (2)), grants to the Institute for Industrial Research and Standards (sub-head O), grant to An Foras Tionscal (sub-head S (1)) and grants for Technical Assistance (sub-head V).
The principal decreases are in the amount provided for food subsidies (sub-head J (1)) and in payments to Mianraí Teoranta for prospecting (sub-head L (1)). The increases under sub-head O (4) and sub-head V are offset by corresponding increases in Appropriations-in-Aid, which it is expected will be derived from recoupments from the American Grant Counterpart Special Fund.
The increase under sub-head A amounts to £21,096. This increase is entirely due to the progression of officers on the incremental scale and to the increases in remuneration granted to civil servants from the 1st November, 1955. There has been a slight reduction in the number of staff provided for.
The estimated amount required to subsidise flour and wheatenmeal prices in the current financial year shows a decrease of £716,000 on the figure for last year. The decrease is due to a reduction in the cost of native wheat and to the decision that no subsidy would be paid in respect of flour used in the manufacture of confectionery and biscuits.
When it was decided that flour confectionery and biscuits should be made from unsubsidised flour, an undertaking was given to exporters of these goods that flour would be made available for the export trade at the same price as flour of a comparable quality could be purchased in the countries to which the exports were consigned. The arrangements by which exporters are entitled to a rebate are working satisfactorily in practice and it is estimated that rebates amounting to about £25,000 will be payable in the current financial year.
Later in my résumé of the operations of my Department, I shall deal with the other increases and decreases in the various sub-heads.
I am glad to say that the upward trend in industrial production and employment has continued during the year under review. The growth in industrial activity may be illustrated by some figures from the Census of Industrial Production which covers two broad categories: (a) output of manufacturing industries, i.e., "transportable goods", and (b) production by services such as building and construction, gas, water and electricity, railways, docks, harbours and local authorities, etc.
Taking all industries and services, the figures for net output and employment are, in round figures:—
|
Year |
Net Output |
Employment |
|
|
1938 |
£35 |
million |
166,000 |
|
1948 |
£75 |
,, |
197,000 |
|
1949 |
£84 |
,, |
206,000 |
|
1950 |
£94 |
,, |
221,000 |
|
1951 |
£101 |
,, |
226,000 |
|
1952 |
£106 |
,, |
221,000 |
|
1953 |
£119 |
,, |
227,000 |
|
1954 |
£122 |
,, |
234,000 |
|
1955 |
£126 |
,, |
235,000 |
The last figure under the heading of "employment" is the highest figure yet attained.
In the case of industries engaged in the manufacture of transportable goods, the corresponding figures are:—
|
Year |
Net Output |
Employment |
|
|
1938 |
£25 |
million |
100,000 |
|
1948 |
£53 |
,, |
123,000 |
|
1949 |
£60 |
,, |
129,000 |
|
1950 |
£67 |
,, |
139,000 |
|
1951 |
£73 |
,, |
144,000 |
|
1952 |
£76 |
,, |
140,000 |
|
1953 |
£87 |
,, |
147,000 |
|
1954 |
£89 |
,, |
153,000 |
|
1955 |
£92 |
,, |
155,000 |
The numbers employed in each quarter of the year 1955 in transportable goods industries were 152,000 in the March quarter, 155,000 persons in the June quarter, 157,000 persons in the September quarter and 157,000 persons in the December quarter.
Deputies will, of course, appreciate that all figures quoted by me for the years 1954 and 1955 are provisional as the final census of production figures for those years are not yet available.
Allowing for the changes in the value of money, the index figure of the volume of production in industries producing transportable goods increased from 99 in 1938 to 131 in 1948, 174 in 1951 and to an estimated figure of 196 in 1955. Taking all industries and services together the corresponding figures are 105 in 1938, 134 in 1948, 176 in 1951 and 198 in 1955.
In the year ended 31st March, 1956, 111 firms have come to notice as having commenced production or as having extended their range of production. At the present time there are approximately 250 industrial proposals before the Department and the Industrial Development Authority and it may reasonably be expected that many of these proposals will be brought to fruition and will form a significant addition to our industrial economy.
The development of Irish industry, as reflected by the figures which I have quoted, must be regarded as highly encouraging. For some time past, however, I have been of opinion that an acceleration in the rate of development is essential, in order to raise the levels of national production and employment, increase commodity exports, reduce imports of goods which could be made here, and stimulate economic activity in the country generally.
Irish industrialists have made strenuous efforts to promote the expansion which is so necessary in the national interest, and many of these efforts, which have been encouraged and facilitated by this and all earlier Governments since the State was founded, have been highly successful. I am confident that their further efforts as represented by the industtrial proposals at present under consideration will also meet with success.
It is apparent, however, that there are lines of manufacture which our industrialists are not at present technically or financially equipped to undertake. I decided that an attempt should be made in the national interest to secure for Irish industrial development the technical knowledge and financial resources needed for further development. To this end, I undertook a visit to the United States earlier in the year, and arranged for delegations sponsored by the Industrial Development Authority, who had previously visited Sweden, with encouraging results, to pay visits to Western Germany, Belgium and the U.S.A.
Before these visits were undertaken, steps were taken to secure maximum publicity in industrial circles in the countries concerned. Attractive brochures—which Deputies have seen— were prepared by the Industrial Development Authority and copies were widely circulated in the proper quarters in the countries concerned. In addition, one member of the authority made a preliminary visit to some of the countries in order to ensure the most effective use of the limited time available by arranging a planned programme for the visits.
While in the United States, I met groups of industrialists, businessmen and investors, as well as representatives of the Administration and State Governments, in many centres and put before them the opportunities which Ireland offered as a base for manufacturing activity. I am glad to say that I found in the U.S.A. a very real interest among industrialists in the possibility of setting up industries in Ireland, and I am hopeful that some at least of the proposals which were initiated during that visit will result in the establishment of industries for the manufacture of goods not hitherto made here.
During the visits of the Industrial Development Authority delegations discussions took place with 30 concerns in Germany, 18 in Belgium and 32 in the U.S.A.; in addition there were meetings with bankers, representative bodies, Government Departments, etc. Reports which I have received from the Industrial Development Authority show that from the contacts made a number of promising proposals have emerged and these are being actively pursued.
In the case of Sweden, visited early last year, a follow-up visit was made by a member of the authority in October last and it is proposed that similar visits will be made in due course to the other countries. In the case of the U.S., because of its size and relatively long distance from this country, a further step has been taken; an officer of the authority with headquarters in New York, will deal with on-the-spot inquiries and will pursue contacts made as a result of the visit to that country.
A visit to the Netherlands was also made by a delegation from the Industrial Development Authority in the last week in May. During their visit the delegation addressed a meeting of industrialists which had been arranged by the three Dutch employers' associations to enable the delegation to put forward the advantages this country has to offer Dutch industrialists interested in participating in the industrial development of this country. Subsequently, individual discussions took place with 19 concerns and a number of factories were visited. I understand that out of these discussions have emerged some propositions which offer promise. The various proposals are now being pursued by the Industrial Development Authority.
The Industrial Development Authority has also had discussions recently in London with the Federation of British Industries with the object of extending to British industrialists, on my behalf, an invitation to participate in the further industrial development of this country. The Federation has kindly undertaken to facilitate the authority in establishing contact with British industrialists over as wide a field as may be feasible.
While it is satisfactory to be able to point to continued industrial progress, our present international trading position leaves no room for complacency. By reason of the serious adverse balance in our international trading account, the Government has been compelled to take action to discourage imports of certain commodities, but, while it is to be hoped that the measures adopted will help materially towards rectifying the present unsatisfactory position, it would be idle to pretend that matters can be put right by Government action alone.
Imports of consumer goods, a large proportion of which could have been made here, contributed substantially towards the bringing about of the adverse trade balance. Distributors have an important part to play in our efforts to increase the market for Irish-made goods and rectify our trade balance. It should not be necessary, at this stage of our industrial development, to remind stockists and distributors that they can and should take effective measures to break down any lingering prejudice which may exist in favour of imported goods, as against Irish manufactured products.
Irish factories are now producing a wide range and diversity of goods which can stand favourable comparison, as regards quality, suitability and price, with the best that can be imported. But I fear that in some quarters there continues a feeling, based on conditions of the past and having no relation to present realities, that because it is of foreign origin a product must necessarily be superior. There is no excuse for such an attitude, even if it is confined to a relatively small number of our people, and I would appeal once more to all concerned, and particularly to distributors to use their influence to dispel this illusion once and for all.
Neither distributors, nor the public, however, can be solely blamed for the fact that such a large volume and variety of goods were imported instead of being bought from home sources. Some share of the responsibility for that situation must rest on the shoulders of those Irish industrialists who have failed or neglected to make their products so attractive in quality, design, finish and variety that the public when purchasing will ask for Irish goods in preference to any others.
On a recent occasion I stated, and I think it is appropriate to repeat it here, that I do not recognise the right of any manufacturer, operating in a sheltered economy, to surrender to the temptation to apply less critical standards to the design, finish and presentation of his products than he would be compelled to adopt if exposed to full competition; and that the fact that the community has agreed to protect him means that he, in turn, owes the community as good service as he would have to give to survive in a free economy.
The need for protection is fully recognised by the Government, but I should be much happier if I could feel that the serious obligations which the grant of protection imposes on them were recognised with equal clarity by all Irish industrialists. I cannot emphasise too strongly that no manufacturer must rely on protection to force the public to buy whatever he sees fit to produce. Every manufacturer must, on the contrary, strive at all times to make available to the public Irish made goods which are equal in every way to the best that can be imported. Manufacturers must also avail themselves of every opportunity to bring home to the public the fact that Irish products are available which can stand comparison with imported products. I am satisfied that if the public can be convinced of this they will give their fullest support to the products of our Irish factories.
I have made remarks in similar vein on previous occasions, but, in the light of the present serious situation, I make no apology for repeating them now. As I have already said, it cannot be expected that Government action alone will rectify the present situation. Increased production is urgently needed, both to lessen our dependence on imported consumer goods and to develop exports which are urgently needed to redress the present adverse trade balance.
This calls for hard work all round and I earnestly appeal to each and every industrialist to put his shoulder to the wheel and contribute his very best endeavours to the common effort to assist in overcoming the difficulties of the present situation. All manufacturers, large and small, can contribute something and I am sure that if all do so the country will soon be well on the way to a solution of its problems.
The encouraging upward trend in the value of exports shown by the trade returns for 1954 was not, unfortunately, maintained during 1955, and the value of our total exports, including reexports, fell by nearly £5,000,000. This gloomy picture is relieved to some extent by the fact that our sales abroad of goods of a purely industrial nature increased substantially. Imports, on the other hand, showed an increase of nearly £24,500,000, with the result that our adverse balance of trade jumped from just under £65,000,000 in 1954 to £94,000,000 in 1955.
It would be impossible to exaggerate the gravity of the situation which these figures reflect and the impact which that situation must have on the whole economic fabric of this country. I do not propose to deal in any detail with the matter in view of the debates which have already taken place on the proposals for a levy on certain imports and on the Budget. I may say, however, that the bulk of the import excess was represented by consumer goods acquired at the expense of a corresponding reduction in our external assets.
This dissipation of national savings presented a challenge which could not be ignored, and when the trade returns for the early months of the present year showed a continuance of the unhealthy trend the Government endeavoured to remedy the position by imposing a special import levy over a wide range of commodities, with a view to arresting the acceleration in the demand for imported goods. If we are to provide a high standard of living and full employment for our people we must, however, find other, long-term, remedies for the continuing lack of balance in our visible trade. The most desirable solution of the problem would clearly be to achieve a substantial increase in production so as to lessen our dependence on imports of manufactured goods, and to bring about a significant and sustained expansion of our exports.
In support of the objective of expanding exports it is, and has been, the policy of the Government to make and maintain trade agreements with the countries to which our exports are mainly directed. During the year, under the trade agreements with France, the Federal Republic of Germany and Finland, fresh import quotas were negotiated for goods of Irish origin which are still subject to import restrictions in those countries.
The real value of these trade agreements depends, however, on the ability and willingness of our manufacturers to avail themselves of the opportunities for additional export trade which they provide. All Irish manufacturers must be persuaded that it is in their own best, long-term interests to seek outlets for their products outside the relatively small, protected home market. The exacting requirements of the export market necessitate the adoption of higher standards of efficiency at all stages of production and adherence to these higher standards offers the best assurance of survival in the home market which itself is becoming increasingly competitive in practically all lines.
Certain of our manufacturers have exerted themselves already and are selling Irish made goods abroad in competition with the best that the world can produce. Our woollen and worsted woven fabrics, for example, have made great headway against fierce foreign competition, while our paper and cardboard mills succeeded in achieving a considerable increase in their exports in 1955. There have also been encouraging increases in exports of beer, footwear, electrical goods and agricultural machinery. It is essential in the national interest, and in their own, that many more should follow the example of the manufacturers of these goods.
The Estimate contains a provision of £69,000 for grants towards the cost of approved technical assistance projects. There has been provision for technical assistance in earlier years, but the extent to which industry has availed itself of this provision has been rather disappointing.
I have been pleased to observe in recent months, however, a growing interest by industrial concerns in obtaining grants from the technical assistance provision towards the cost of engaging industrial consultants. The employment of such consultants is a matter which I feel industrial firms should be prepared to consider, where necessary, in the interests of greater efficiency. I understand that certain firms who have employed consultants and experts to examine and advise on their problems are in a position to afford convincing evidence of the advantages to be derived from well-thought-out schemes. The financing of such projects is, of course, primarily a matter for industrialists themselves, but the technical assistance provision enables a State contribution to be made in suitable cases towards the costs involved.
I frequently receive representations from Deputies and other public representatives to have an industry set up in a particular town or locality. While nobody is more anxious than I am to see the widest possible spread of industries and the greatest practicable degree of industrial development throughout the country, I think it desirable to point out here that I have no power to direct that an industry should be established in a particular locality. In cases where new manufacture licences are involved—and these are relatively few compared with the total—I have power to attach a location condition, and in accordance with the general policy of decentralisation I use this power to secure, wherever possible, the establishment of industries outside Dublin and other large centres of population. Even in cases where it is possible to use this power, however, the final choice of location must rest with the promoters and those proposing to finance the project; if they did not consider a particular location suitable having regard to technical and other requirements they would naturally prefer to abandon the project rather than run the risk of setting up in an unsuitable location.
Deputies will understand also that it would be invidious for me to single out for special attention any one of the many localities in respect of which I have received representations regarding the establishment of industries. Where, therefore, promoters have not already selected a likely site all that can be done is to direct their attention to the list, which includes practically every town in Ireland, of places interested in getting industries and leave it to them to explore the attractions of those localities which appear to them to offer the best prospects for the industry they have in mind. The number of cases in which even this is possible is, in any event, strictly limited as in the vast majority of cases industrial promoters have already decided on their choice of site before submitting their proposals.
I would appeal to Deputies, therefore, to use their best endeavours to give local interests a true picture of the position which is that success in securing an industry for a particular locality must depend in the final analysis on the enthusiasm and perseverance with which the objective is pursued by the local interests concerned. For my part I am prepared to give every assistance I can do enable local groups to formulate and implement sound proposals, but I cannot present them with a ready-made industry.
The progress made under the Undeveloped Areas Act, 1952, during the past year in the stimulation of industrial development in the undeveloped areas is encouraging. Since An Foras Tionscal was established in January, 1952, there has been a steady increase each year in the volume of industrial projects approved by that organisation. In the 15 months from January, 1952, to 31st March, 1953, grants amounting to £105,000 where promised in respect of approved projects; in the following financial year grants amounting to £159,000 were promised; for the year ended March, 1955, the figure increased to £232,000; and for the last financial year the figure was £472,000. The total amount of grants approved since An Foras Tionscal was established is approximately £1,000,000. The industrial projects concerned represent a total capital investment of the order of £3,000,000.
There is of necessity a time-lag between the approval of grants and their actual payment as it is the practice of An Foras Tionscal not to make payments until a reasonable share of the private capital in each case has been expended on factory premises or machinery. For this reason, the total grants paid to 31st March, 1956, amounted to only £266,000. In the current financial year An Foras Tionscal expect that payments will amount to £300,000, for which provision is made in the Estimates, representing an increase of £165,000 on the provision for 1955-56.
There are at present 23 units operating in the undeveloped areas which were assisted by An Foras Tionscal. Their products include woollen yarn, single cotton yarn, double cotton yarn, berets, woven labels, narrow width fabrics, ceramic tiles, electrical accessories and other plastic manufactures, bone china, clay drain pipes, tipping gears and bodies for lorries, tyre retreading and locks. A number of order approved projects are in various stages of development and the volume of inquiries received by An Foras Tionscal from businessmen indicates that there is a continuing interest in the facilities available under the Act. At 31st March, 1956, firms which had been assisted by grants from An Foras Tionscal were employing 929 persons. Employment is at present being afforded to about 1,000 persons in projects assisted by An Foras Tionscal and the projects approved to date will give employment to more than 2,000 persons.
Unless legislation is passed to extend its life, the Undeveloped Areas Act will expire in December, 1958; and already about one-half of the total of £2,000,000 which the Oireachtas provided in the Act has been allocated by An Foras Tionscal. During this coming year therefore it may be necessary to consider what further financial provision should be made to assist industrial development in the undeveloped areas.
Deputies will no doubt expect me to bring them up to date on developments in regard to the setting up of an oil refinery in this country. It will be recalled that, when introducing the Estimates for last year, I mentioned that the three major distributing companies—Esso, Caltex and Shell—had agreed to form a company for the erection and operation of a jointly-owned refinery and that they had promised to submit detailed proposals in due course. I am glad to say that the companies' proposals have been received by the Industrial Development Authority, who are handling the matter, and that these proposals are at present under examination by the authority. It will be appreciated, I am sure, that the examination of proposals concerning such an important project entails detailed and careful analyses of the various points involved.
I have not yet received the authority's report on the matter and until I receive that report I am not in a position to make a statement on the proposals submitted. I may say, however, that I have been informed by the authority, who keep me fully informed on all developments in this matter, that the examination of the proposals has reached an advanced stage and that I may expect the report at an early date. As regards the question of location, Deputies will, of course, have seen my public announcement last July to the effect that the companies concerned had intimated that all other locations had been excluded in favour of the Whitegate area, County Cork, which was regarded by them as the most economic site for their refinery.
Deputies were given full details of the arrangements for the development of the Avoca minerals deposits during the course of the debate on the Mining Tax Bill and I do not think that I need go over the ground again. I may say, however, that I am convinced that the arrangement was the best one that could be made in the national interest, and I have high hopes that it will lead to the establishment of an important industry in the Avoca area.
When the operating company took over control at Avoca on 1st October, 1955, there were about 80 men employed. Employment at present is in the region of 180 men and the company hope to be employing about 300 men by the end of the year. Production is expected to commence towards the end of 1957, and I am informed that when the mine is in full production, employment will be of the order of 500 men. From reports which I have received I am satisfied that the company are pressing ahead vigorously and efficiently with their development work at Avoca.
As Deputies are aware the work of exploring, developing and exploiting our mineral resources is primarily a matter for private enterprise. The Minerals Development Act, 1940 empowers me to grant facilities for such work in the form of prospecting licences, State mining leases, etc., and I am prepared to grant such facilities to persons who can show that they possess the requisite technical and financial resources.
It was in the knowledge that a special effort would have to be made to stimulate private enterprise to invest large sums in new mining ventures that the Government recently promoted legislation for tax concessions for such ventures. When the concessions were announced last September I expressed the hope that they would induce other groups to undertake minerals exploration and development work in this country. I am glad to be able to report to the Dáil that this hope has been realised and that the tax concessions, coupled with the entry of the Canadian interests into Avoca, have focussed a good deal of attention on Ireland as a potential source of undeveloped mineral deposits.
Already a number of foreign groups have carried out surveys of our unworked mineral deposits. One such group has formed an Irish company which has commenced exploration work on mineral deposits in Meath and Monaghan and which has undertaken to spend over £30,000 on such work during the next year. I have at present before me a number of proposals from other groups for exploratory work in various parts of the country including Waterford, Cork, Kerry and Clare. I am optimistic that these proposals, which would involve an expenditure of over £200,000 in the next year or so, will be implemented in the near future. I am also considering proposals which were submitted to me recently for an investigation of the possibilities of locating oil and natural gas in Ireland.
Deputies will have observed that the provision in the Estimates under sub-head L (1) for payments to Míanraí Teoranta is only £10. This is a token sum to meet any unforeseen contingencies which may arise during the year. With the leasing of the Avoca deposits Míanraí Teoranta have no specific task to perform, and I am at present considering, in consultation with the board of the company, whether, in the circumstances in which we now are, the company is in a position to undertake any further activities which would be likely to promote the development of our mineral resources.
There has been a technical assistance project for minerals exploration proceeding for some time past. This project is intended to cover three mineralised areas in the country. Last year I reported on the results of the work which had been completed in two of these areas, viz., Abbeytown, County Sligo, and Murvey, County Galway. A drilling programme at Abbeytown was successful and the operating company is exploiting the additional deposits of lead and zinc which were discovered.
The work at Murvey failed to establish the existence of the minimum quantity of molybdenite ore of a grade which would be suitable for commercial development. Traces of molybdenite in the area adjacent to Murvey were then examined but the conclusion was reached that further exploration in the area at State expense would not be justified.
The third area selected for investigation under this project is Glendalough, County Wicklow, where there are privately owned deposits of lead and zinc. Negotiations with the operating company for the undertaking of an exploration and development scheme to open up further deposits are nearing a conclusion, and I hope that exploration work in the area will be commenced shortly.
Following on the Government's decision in 1954 to permit Coras Tráchtála to operate in areas outside the dollar area, the company established an office in London to provide an organisational centre for the promotion of exports to overseas countries as well as a channel of inquiry and communication between United States and Canadian buyers and Irish manufacturers. This centre has done much to bring to the notice of prospective purchasers the range of Irish goods available for export and has revealed useful and hitherto unsuspected export outlets for our products. It has also served to emphasise that perhaps the most important work falling to Coras Tráchtála has been that of creating at home the production conditions, including improvements in quality, design presentation and general workmanship necessary to meet the exacting standards of the export market, as well as the export consciousness which provides the main spring of all export endeavours.
Over a wide range of our products, it is now true to say that for goods of the right quality, properly priced and attractively presented, export markets are there for the taking: it is up to our manufacturers to seize the opportunity to make a practical contribution to the solution of our most pressing economic problem.
I referred last year to the efforts of Coras Tráchtála to secure a substantial development in our exports of whiskey. I am glad to be able to say that the prospect of achieving an all-time record in the value of our whiskey exports is well on the way to being realised. Exports to the U.S. of all types of Irish whiskey were valued at £30,000 in 1952, £53,000 in 1953, £60,000 in 1954 and £86,000 in 1955, and the level of advertising at present being sustained by the trade in that country is far in excess of anything previously attempted. I understand that Coras Tráchtála is at present discussing with representatives of the Irish distillers the possibility of a further joint promotional activity designed to maintain and to expand the level of whiskey export and I wish every success to their deliberations.
The scheme of export credit insurance, under which political risks, as distinct from the ordinary commercial risks, attaching to export trade are underwritten by the State, came into operation during the year. The present scheme applies only to the dollar area, but I am considering the possibility of extending the scheme to all areas to which our exports are normally sent.
Deputies will be aware of the steps taken during the year to substitute for emergency legislation a new Control of Exports (Temporary Provisions) Act under which export control of industrial goods will in future be regulated. I should like to make it clear that the existence of official export controls is no barrier to the development of any genuine export trade. Such export controls as it is still necessary to maintain are required either to provide against the dissipation of raw materials essential to our home manufacturers, or to ensure that this country is not used as a base for the despatch of strategic materials to Iron Curtain countries. Export Control Orders under the new Act have a currency of only 12 months, after which they expire, unless renewed, but they may be revoked at any time by resolution of either House of the Oireachtas. This procedure provides an assurance against the retention of export controls which have outlived their usefulness or their original purpose.
Throughout the year under review unremitting attention has been given to the problem of price control. In recent months, the matter has figured prominently in no less than four major debates in this House, culminating in the debate on the Supplies and Services Bill in March last. Deputies will not, therefore, expect me to go over the ground again in any detailed way at this point.
In broad outline, the position is that, in circumstances altogether outside our control, steep increases have occurred in the costs of essential commodities and services which we must obtain from abroad. Important examples are coal costs and freight charges. During the past 12 months, the British National Coal Board have made three substantial increases in the price of coal. This has been reflected in increases in the cost of production here of many other commodities, including, in particular, the cost of gas. Increases in wages too have contributed in one degree or another to the overall increase in the cost of our industrial and agricultural production.
In these circumstances, everything possible is being done to protect the public from any attempt to impose unwarrantable increases in the prices of essential goods in widespread use. All applications for increase in the prices of such goods are closely examined by the Prices Advisory Body and public inquiries are held where practicable and where considered necessary in the public interest. Invariably, price increases are authorised by me only on the recommendation of the Advisory Body made after a full examination of all the circumstances.
During the past 12 months, the Prices Advisory Body held 52 meetings and 13 public sittings. It is, of course, outside the power of the Prices Advisory Body to hold down the level of retail prices in the face of substantial increases in the costs of imported raw materials and in manufacturing costs generally. It can be claimed, however, that the activities of the body have provided an assurance to the public that they are being safeguarded to the greatest possible extent in regard to the prices of essential commodities.
It has been noticeable that the examination of price applications by the body has been attracting increasing public interest. I should like to see a greater measure of interest displayed by organisations representing the consumers and by the trade unions in the public inquiries held by the body.
While the work of the body has been of particular difficulty during a period of rising prices, I am satisfied, and I believe that this is also the feeling of the community generally, that the Prices Advisory Body perform an essential public service and that in very difficult circumstances their work is done conscientiously and efficiently. In some cases where price increases have been recommended by the body they have been less than the increases sought by the producers or distributors concerned and there can be no doubt that there would have been greater and more widespread price increases but for the existence of the body.
In June, 1955, the Oireachtas passed a new Factories Act. As Deputies are aware, this Act amends, codifies and extends the previous code of law relating to the health, safety and welfare of workers in factories, docks, wharves, quays and building and engineering works. As I have already announced, the Act will be brought into operation on 1st October next. Certain regulations fixing the standards and prescribing the various registers, abstracts and forms which will be used by factory occupiers must be made before the Act comes into operation. These are at present being prepared in consultation with the Advisory Council set up under the Act which is composed of persons representative of workers and employers. It is my intention that full information on the regulation should be furnished about the end of this month, giving three clear months before the Act comes into operation.
For some time past I have been of opinion that the existing staff of factory inspectors was insufficient to enable them to discharge efficiently the duties imposed on them by existing legislation and that it would be still more insufficient in view of the additional duties that would be imposed by new legislation. Accordingly, I decided to augment the staff. A new post of chief inspector of factories has been created, the number of senior factory inspectors has been increased from three to five and the number of factory inspectors from 15 to 20. There will, accordingly, be a total staff of 26 in the factory inspectorate as compared with 18 previously. A number of the extra staff has already been recruited and I expect that the remainder will be appointed shortly. I hope that these additional appointments will ensure that workers will get the benefits provided by the new legislation.
When the Factories Bill was before the House, I undertook to introduce separate legislation to give to office workers the same sort of protection as factory and shop workers enjoy in the matter of health and comfort in their places of employment. As I foresaw, the problem is not without its difficulties. I am glad to say, however, that substantial progress has been made and I hope to be in a position to introduce the necessary measure this year. As we are breaking new ground in this matter it is my intention to afford all interested parties ample opportunity to consider the proposals and I will be glad to receive their suggestions for improvements and amendments. It is my hope that during the time which must elapse before the measure is enacted employers will endeavour on their own initiative, where necessary, to improve the accommodation and amenities for their office workers.
The purpose of the Industrial Relations (Amendment) Act, 1955, which was passed in July last was to give access to the Labour Court to certain employees of local authorities who were formerly precluded from submitting their claims concerning wages and conditions of employment to the court. I have found that many of these employees were prevented from availing themselves of this facility because they were designated by their employers as officers. An Order has now been made by the Government which gives access to the Labour Court to a long list of such employees.
The amount of injury which can be done to the national economy by lightning and unofficial strikes has long been a matter of concern to me. During the year there have been a number of discussions with the two trade union congresses on the subject, at which the need for greater co-operation between management and workers with the object of removing the causes which can precipitate lightning strikes has been accented. I am fully satisfied that both congresses are anxious to take every possible step to eliminate or at least lessen the incidence of unofficial stoppages and I am aware that both have already taken certain measures designed to achieve this object. The Provisional Unity Committee of the Irish trade union movement have also taken their part in urging the observance by all unions of proper procedure and good trade union practice in all inter-union dealings so as to avoid any possible cause of friction.
I am now arranging for discussions with the employers' side on the measures which can be taken to improve employer-worker relations and to reduce possible causes of dispute. As a consequence of all these discussions I hope it may be possible largely to eliminate the occurrence of unofficial stoppages or to evolve an acceptable procedure for dealing with the position if they should occur in future.
I have had under consideration for some time the functioning of the Labour Court, which has now been in operation for about a decade. I have had preliminary discussions with various interested parties, including the present members of the court. These discussions are proceeding and I hope that as a result it may be possible to improve the machinery and services at present provided.
I hope also that it may be possible during the coming year to progress with new apprenticeship legislation. Draft proposals for this legislation have been prepared and sent to the representative bodies of workers and employers for their views and comments. I am confident that with the assistance of these bodies I shall be in a position to bring before the Dáil proposals for an improved system of apprenticeship framed on lines acceptable to both the worker and employer interests.
Ireland continued during the year to participate actively in the work of the International Labour Organisation, sending a full tripartite delegation to the Thirty-eighth Session of the International Labour Conference held in Geneva in June, 1955. Two important Conventions, dealing with (1) Freedom of Association and Protection of the Right to Organise, and (2) The Right to Organise and Collective Bargaining, had been ratified by this country. I am glad to say that the Irish delegates were thus in a position to deposit the instruments of ratification at the Conference.
In view of their statutory position and the fact that the major part of the operations of Bord na Móna, and all those of the E.S.B., are financed from sources other than voted moneys, I propose to refer only briefly to the activities of these two bodies. The most notable achievement of Bord na Móna during the year was the attainment of its initial target of producing 1,000,000 tons of turf per annum. 656,000 tons of sod peat and 360,000 tons of milled peat were produced during the 1955 season. Of the milled peat production 165,000 tons were produced at the board's Lullymore works in County Kildare for briquette production as compared with 99,600 tons in the preceding year. Production of briquettes amounted to 41,000 tons in 1955-56 as compared with 35,000 tons in 1954-55. The balance of the milled peat was produced in the Boora group of bogs and will be used in the electricity generating station at Ferbane which is expected to come into commission during the current year. Production of peat moss was also maintained. During the peak production period last year employment was given to 6,345 men.
Deliveries of sod peat to the electricity generating stations at Portarlington and Allenwood in the year ended 31st March, 1956, totalled 449,000 tons as compared with approximately 379,000 tons in the year ended 31st March, 1955.
I shall be referring later on to certain changes in the power generating programme and the effects of these changes on the operations of Bord na Móna.
With the completion of its scheme of 104 houses at Kilcormac, County Offaly, the board now has a total of 464 houses for its employees in various schemes. A further 108 houses are at present under construction at Rhode, County Westmeath, and Ballivor, County Meath.
The coal supply position during the year was satisfactory. Sales of coal from the reserve stocks maintained by Fuel Importers, Limited, were discontinued in April, 1955, when these stocks had been reduced to 98,186 tons. As a result of a special approach which was made to the British National Coal Board during the year we succeeded in obtaining an increase in our allocation of general purposes coal and also in securing increased supplies of graded anthracite and substitute fuels suitable for use in heat storage cookers. Adequate supplies of coal for all purposes were available throughout the year.
Home production of anthracite declined somewhat in 1955 as compared with 1954 which was a speak production year but the authracite colliery proprietors have recently informed me that they hope to secure increased production during the current year. The Irish coal trade are prepared to take up the full home production of large and sized anthracite and there is, therefore, a ready and remunerative market for all good quality fuel of this type which can be produced.
The decision to discontinue sales of coal from the reserve stocks maintained by Fuel Importers, Ltd., was taken in the light of the uncertain position which then existed regarding coal supplies from Britain. Exports of British coal are being drastically curtailed in the current year, but the National Coal Board has made an allocation of 1,600,000 tons to this country. There is no reason to anticipate that we will have any difficulty in obtaining adequate supplies of coal from Britain during the coming year although, as deputies are already aware, at substantially increased prices. As yet, however, it is too early to take any decision with regard to the retention or disposal of our reserve stocks but the matter will be kept under review in the light of developments in the supply position.
Of the four small electricity generating stations designed to use hand-won turf which the E.S.B. is erecting it is expected that the stations at Miltown Malbay, County Clare, and Screebe, County Galway, will come into commission towards the end of this year, and that the other two stations at Gweedore, County Donegal, and Cahirciveen, County Kerry, will come into commission early in 1957. To facilitate the supply of turf to these stations a sum of £200,000 has been allocated from the National Development Fund for road works and other necessary works in these areas. Of this sum £120,000 has been allocated for county roads and arrangements have been made with the Department of Local Government and the local authorities concerned for the carrying out of these works. It is intended that the balance of £80,000 will be devoted to the provision of bog road drainage and development work.
The number of areas developed under the rural electrification scheme by the E.S.B. during the year ended 31st March, 1956, was 99. At that date 453 rural areas had been developed out of a total of approximately 800 and with development now proceeding at the rate of 100 areas per annum rural electrification should be extended to all areas by about the middle of 1959. The rate of development has accelerated substantially in recent years and the number of areas completed since the inception of the scheme is as follows:—
|
1946-47 to 1950-51 |
131 |
|
1951-52 |
49 |
|
1952-53 |
49 |
|
1953-54 |
60 |
|
1954-55 |
75 |
|
1955-56 |
99 |
A further 16 areas have been completed in the period from 1st April to 2nd June this year.
Over the whole period the work of rural electrification has entitled the provision of nearly 27,000 miles of lines and the erection of approximately 500,000 poles, and has resulted in connecting 163,000 new consumers to the electricity system.
The development programme of the E.S.B., as set out in the Appendix to the White Paper which was published in March, 1954, provided for an increase in installed capacity to 1,022.5 mw. by 31st March, 1961, to meet a demand for electricity estimated at 3,350,000,000 units during that year. The estimates of increased demand over the years were based on assumptions made in 1953 that the demand for electricity would double itself every five to five and a half years. The rate of growth in demand for electricity has, however, shown a tendency to decline. Between 1952-53 and 1953-54 the demand increased by 11.3 per cent., and in 1954-55 it increased by a further 12.8 per cent. over the preceding year. In 1955-56, however, the growth in demand was less than 8 per cent. despite the energetic sales campaign by the board and a considerable increase in its sales of electrical appliances.
As I have already stated in the Dáil the present position is that installed generating capacity is more than adequate to meet the existing demand and in view of the large amount of additional capacity which will be brought into commission during the next few years this position is likely to continue for some time. The board have, therefore, prepared a revised development programme which provides for a reduction to approximately 728 mw. in installed capacity in commission at 31st March, 1961 to meet a demand which is now estimated at 2,430,000,000 units in that year instead of 3,350,000,000 units contemplated in the White Paper.
Notwithstanding this downward revision it is anticipated that the margin of spare capacity available at times of peak load will be considerable, varying between 22½ per cent. and 33? per cent. over the years 1956-57 to 1960-61. This, however, is inevitable as a result of the long-term nature of the commitments which the board has undertaken. Adherence to the White Paper programme would merely result in further excess capacity and over-capitalisation with resultant heavy and unrequited charges on the board's revenue.
Since the E.S.B. power development programme was closely integrated with the turf development programme of Bord na Móna, the necessary slowing down—for that is what it amounts to— in the expansion programme of the E.S.B. is bound to have repercussions on the activities of Bord na Móna. If the power requirements are lower than was originally contemplated then the requirements of fuel—milled peat—for the generation of that power must obviously also be lower. This means that the output of some of the bogs earmarked for power purposes will not be required for those purposes as early as was contemplated in the White Paper of 1954. This is the inevitable result of the slowing down in the rate of annual increase in the demand for electric current to which I referred earlier.
The development of generating power and the development of bogs are long-term operations and it is difficult at any time to forecast what the position may be five to ten years ahead because so much depends on the rate at which economic development proceeds in the various sectors of the national economy.
Indeed it might be said that forecasting under this heading is somewhat hazardous and all that one can do is to proceed on the basis of the best estimates that can be made at any particular time with the proviso that, if circumstances change, the estimates must be subject to revision. Subject to these qualifications, the reasons for which Deputies will appreciate, the E.S.B. have intimated that, on the basis of the best estimates that can now be made, they will not, within a period of, say, six or seven years from now, require the output of the second half of Boora bog or the second half of Derrygreenagh bog.
They have also intimated that, subject to revision in the light of developments in later years, it is likely that the original dates of commissioning of the stations earmarked for erection on the Bangor-Erris and Blackwater bogs will be somewhat later than was contemplated in the 1954 White Paper. So far as the latter two bogs are concerned Bord na Móna will, therefore, find it necessary to proceed with development work at a slightly slower rate than had been contemplated originally.
For some time past discussions have been taking place with Bord na Móna on the subject of establishing a briquetting factory on a bog suitable for the production of briquettes but these discussions were hampered by the fact that the bogs most suitable for this purpose were reserved for the production of milled peat to meet the requirements of the E.S.B. for the generation of electricity.
In view of the change in that situation as indicated above, whereby portions of suitable bogs have now become available for briquetting purposes, discussions were resumed recently with Bord na Móna, and I am glad to be able to announce that the Government have now approved of the erection on the Boora bog of a full-scale briquetting plant with an estimated output of 100,000 tons per annum which will absorb the full quantity of milled peat not now required by the E.S.B. The cost of the plant is estimated at approximately £900,000, apart from the cost of the development of the bog which will remain the same as if it were being developed for power purposes. I am advisd that it will take approximately three years from this date to bring the plant into full operation. In the meantime bog development will continue normally at Boora.
The Government have also given their approval in principle for the erection of a second briquetting plant, on the same scale, on the Derrygreenagh bog, but it is proposed, for practical and technical reasons, that work on the erection of the second plant should be deferred until some practical experience is gained of the problems associated with the planning and erection of the first station.
I am assured by Bord na Móna that they have full confidence in their ability to find a ready market for the output of both briquetting plants, approximately 200,000 tons of briquettes per year, and, while estimates of production costs at this stage obviously cannot be taken to be the last word, I am satisfied, on the basis of the information which the board have given me, that they should have no difficulty in disposing of the briquettes in competition with imported coal and other fuels. The successful operation of the briquetting factories would, amongst other things, result in a not inconsiderable reduction in our import requirements and a corresponding improvement in our balance of payments position.
The present production of briquettes from the Lullymore factory is 40,000 tons annually and this will soon be increased to 50,000 tons. The new factory at Boora will produce 100,000 tons a year and a similar quantity will be produced by the second factory at Derrygreenagh when erected. Accordingly, when the plans of Bord na Móna have been completed the annual production of briquettes will be eventually increased from 40,000 tons to 250,000 tons per annum. This is a development which I think will commend itself to Deputies on all sides of the House and I am sure that all will join with me in wishing Bord na Móna success in their new venture.
I may mention, perhaps, that as the scheme is at present only in its initial stages I cannot give Deputies as much information as I would like about it, but I shall, of course, be happy at a later stage to make fuller information available.
The Industrial Research and Standards (Amendment) Act, 1954, provides for the payment to the institute of grants up to a maximum of £35,000 in any one financial year. The previous limit on grants was £15,000 a year. A grant of £32,000 will be required to meet the administrative expenses of the institute during 1956-57 as compared with £22,000 last year. The institute continues to make satisfactory progress with the discharge of its functions in relation to industrial research and standards.
An agreement between this country and the United States of America was executed in June, 1955, under which a sum of £130,000 of Grant Counterpart Funds will be utilised to erect and equip three additional laboratories for the institute. There will be a textile testing laboratory, a testing laboratory for the building industry and also a photometric and optical laboratory costing in all £80,000 and equipment for the laboratories will cost £50,000.
These laboratories when erected and equipped will enable the staff of the institute to give valuable assistance towards the development and improvement of the country's industrial efficiency. It is expected that £10,000 will fall due for payment in respect of the construction and equipment of the laboratories in 1956-57 and provision for this amount is made under subhead O (4).
During the past year the Fair Trade Commission have continued to make steady progress with the task of investigating restrictive trade practices. To date, the commission have held five public inquiries in relation to the supply and distribution of radio sets, building materials, motor goods, proprietary medicines, and grocery goods. Reports of the inquiries in relation to radio sets, building materials and motor goods have already been published, and I am awaiting the commission's report in the other two cases.
The Oireachtas recently considered, and passed, two Bills to confirm Orders which I have made under the Restrictive Trade Practices Act, 1953, prohibiting certain restrictive practices in the radio and building trades. I have made a similar Order in the case of the motor trade and I hope to bring the necessary confirming Bill before the House in the near future.
The commission have made fair trading rules in relation to 13 commodities or groups of commodities, including petrol, electric light bulbs, carpets, non-woollen household textiles and coal. The commission have also investigated complaints in relation to the supply and distribution of various other goods. I am glad to say that, in many cases, the commission's intervention resulted in a settlement of the difficulty.
It must by now be perfectly clear that the Government and the Oireachtas are fully determined to protect the community against restrictive practices which are unfair and which are contrary to the public interest. The prohibition of restrictive practices in the radio and building trades following the statutory inquiries held by the Fair Trade Commission will, I hope, be regarded as a headline by trades generally. I trust that it will induce those who are still engaged in restrictive practices to abandon such practices voluntarily, so that it will not be necessary for the commission and the Oireachtas to deal with the question of restrictive practices, trade by trade, over a long period.
