asked the Minister for Industry and Commerce whether he has made an assessment of the causes of the fall in industrial production and the increase in industrial unemployment; and whether he is in a position to indicate the extent to which (a) the import levies and (b) the credit squeeze are significant factors in causing industrial unemployment and a fall in industrial production.
Ceisteanna—Questions. Oral Answers. - Industrial Production and Employment.
The trend in industrial production and employment since 1954 is indicated by the following figures, as furnished by the Central Statistics Office:—
Index Numbers in respect of volume of production in Transportable Goods Industries: (base 1953=100)
|
Quarter ended |
March |
June |
September |
December |
|
1954 |
96.3 |
106.0 |
106.5 |
104.1 |
|
1955 |
99.0 |
110.2 |
110.1 |
109.6 |
|
1956 |
101.8 |
106.3 |
— |
— |
Over the same period the numbers employed in transportable goods industries were:—
|
Quarter ended |
March |
June |
September |
December |
|
1954 |
152,200 |
154,500 |
154,800 |
156,500 |
|
1955 |
153,200 |
155,200 |
157,800 |
158,600 |
|
1956 |
153,800 |
153,100 |
These figures show that there was a progressive increase in industrial production and employment until June, 1956, when a decline was recorded. The figures quoted relate broadly to the manufacturing industries.
The most desirable way of redressing the recent decline in employment, the causes for which vary from one industry to another, is an adequate overall expansion of our productive economy. With this object in view the Government have now introduced proposals for legislation:— (a) to provide a tax-relief on export profits; (b) to provide grants for the erection of new factory buildings; (c) to provide a tax-relief for new industrial buildings and hotel accommodation; and (d) to provide a tax concession on increased coal production.
With regard to the references in the question to the import levies and the credit situation, these are matters for the Minister for Finance, to whom the Deputy should address any questions.
May I ask the Minister whether, in view of the fall in industrial employment and industrial production which has taken place particularly since June, he can state to what extent the credit squeeze has been an important factor in producing that fall, and secondly, in view of the statement of the Tánaiste that the Government considers the expansion of the economy as the proper remedy, does he consider it is possible to secure an expansion of production and expansion of the economy in general, if at the same time a policy restrictive of investment is pursued by the banks?
If these questions were appropriate to me, I would have no hesitation in answering them, but the question of the credit situation and the levies is a matter which I think is proper to the Minister for Finance and the Deputy appears to have accepted that view, judging by the terms of Question No. 27 which he has addressed to the Minister for Finance.
If I may, perhaps, explain—perhaps the Tánaiste was not present. May I point out that Question No. 27 was addressed by me to the Taoiseach but was transferred to the Minister for Finance, so that I do not think that is a valid argument about the reply to my question? May I ask this supplementary of the Tánaiste: as the Minister in charge of industrial development, surely he must have a view as to whether it is possible to secure expansion of industrial production and industrial employment, if a restrictive credit policy is being pursued?
If the Deputy thought it was proper to address the question to the Taoiseach, in the first instance, presumably he regarded the Taoiseach as the proper person to whom to address the question and if it was transferred to the Minister for Finance, it must have been because there was an assumption by somebody that the Minister for Finance was the appropriate person. I would have no hesitation in answering the question if it were clearly within my province, but the Deputy will appreciate that, for obvious reasons, questions relating to the affairs of another Department should be answered by the Minister in charge of that Department.
Does the Minister not consider that the question of industrial expansion and production is a matter of concern particularly for his Department?
This supplementary question is developing into an argument.
Would the Tánaiste tell us how does he reconcile the information he has given to the House with the Budget speech made by his colleague, the Minister for Finance, or are they working in separate, watertight compartments?
Irresponsible Ministers in an irresponsible Government.