asked the Minister for Industry and Commerce if he proposes to take any action in connection with the recent further increase in cross-Channel freights.
Ceisteanna—Questions (Resumed). - Cross-Channel Freights.
5.
As I have indicated previously, there is no statutory authority vested in me, or in the Government, by which direct control can be exercised over the level of cross-Channel, or any other shipping rates. It is in the nature of the trade that effective control of these rates cannot be unilaterally exercised by the Government here. In the shipping industry generally, very keen international competition controls freight rate levels. In order to find out why collective arrangements for the fixing of freight rates have brought about a position in which freight rates in the cross-Channel trade have risen consistently and uniformly over a long perod when shipping rates generally were fluctuating, I appointed a Tribunal to enquire into the matter. All aspects of the problem will be considered when I receive the report of the Tribunal of Enquiry which is expected in the very near future.
Is it not a fact that this latest impost of 5 per cent. will, it is estimated, add a further £1 million to the cost of cross-Channel freight between Britain and this country particularly affecting cattle and agricultural produce? Having regard to that and to the desirability of expanding our exports to Britain, will the Minister not take some definite action in the matter or are we going to throw in the sponge completely in the matter?
I have no knowledge of the reasons for the increase except those published by the companies themselves. There is, of course, no power to control shipping freight rates and it is obvious, in the case of international shipping services, that unilateral action by one Government would be ineffective. The report of the tribunal is expected shortly but until we receive that report it will not be possible to consider what useful action can be taken.
Is there any other action we can take in the meantime?
I would welcome any suggestion the Deputy might like to make.
I shall make a suggestion. May I inquire if the Minister would consider sending for the group that controls cross-Channel goods traffic and inquire of them as to the necessity for this increase and advise them that if this monopolistic tendency to raise cross-Channel freight rates persists we may consider providing at least a shuttle service for livestock from our own resources?
The establishment of a tribunal with power to require the submission of evidence was a far more effective method of collecting information than that which the Deputy suggests. That tribunal is about to submit its report and I suggest the intelligent thing to do is to wait until we get that report before coming to any conclusion about the situation. It will be appreciated that our concern over this arose out of the fact that collective action appeared to be involved rather than rates having increased. The justification for collective action is one of the matters we would have to consider.
Ad interim may I suggest that if the Minister feels the intelligent thing to do is to await the report, he might send for this monopoly and say to them: “The Government are prepared to hold their hand in this matter pending the issue of this report” and then ask if the monopoly would exercise a similar restraint and withhold this further impost pending publication of the report and then, in the light of that report, let the monopoly do what it thinks right and the Government will be free also to do what they think right? But if you are going to hold your hand surely the monopoly ought to reciprocate that courtesy especially if it is going to cost the livestock trade and other industries another £1 million.
One of the facts to be ascertained is whether there is any margin which would enable them to carry the increased costs.
Does the Minister suspect this further increase is to put the shipping companies in a better condition to bargain in view of the anticipated release of the report and would he, at this stage, as an interim measure, consider sending for those responsible for the increase in rates and put them on their defence to justify the increase in freight rates at a time when freight rates have been falling all over the world? Why must the rates go up here when they are falling on every route in the world?
I expect that the answer which would be given is that the costs have increased in various respects. Whether they are, in fact, making a profit on these operations is one of the relevant considerations about which one would have to be informed before coming to a decision.
I take it that the Minister is the only instrument we have to protect the users of the cross-Channel shipping services. Therefore, the Minister must exercise every power he has in the matter. The Minister is prepared to wait for the report——
Question No. 6.
6.
asked the Minister for Industry and Commerce when the report of the tribunal set up to investigate cross-Channel freights will be made available.
I expect to receive the Tribunal's Report within the next few weeks and arrangements for publication will be made without delay.
The Minister expects this report within the next few weeks and, I think, reasonably enough, says: "I do not want to take any Draconian action until I see the report which is coming so soon that I think I may, with propriety, wait for it." The Minister could, surely, approach this monopoly and say: "I am trying to act reasonably, but I am under great pressure, and I am hard-pressed to control the freight rates. I have refused to do so, pending the publication of this report because I want to act with full information. Surely you can afford to wait for three or four weeks before clapping on another five per cent."
That question does not arise.
Is it not quite obvious that the control of rates of international services cannot be done unilaterally, by one Government?
Surely the Minister is aware that freight rates on every route in the world have been declining, but there is a peculiar monopoly situation here and a combination which may serve a useful purpose. If the Minister for Industry and Commerce is prepared to hold his hand, pending the report, surely they ought also to hold their hand in respect of a five per cent. increase for three or four weeks. That is a fair question and I suggest that the Minister himself should put this proposal to them, and if he does, I think they will accept it.
I do not wish to bait the Minister on this question, but in view of the fact that the report is only three weeks away, it looks mighty suspicious that a further increase of five per cent. in freight rates should take place. In view of the fact that we are so close to getting the report, would the Minister, as an interim measure, ask the persons concerned how they can justify this increase in freight rates and why they are not prepared to wait until the Minister has an opportunity of considering the report, which is of such vital importance not merely to the shipping users, but perhaps to the shipping services concerned? Why should we have this eleventh-hour increase?
That does not arise on Question No. 6.
The Deputy ought to revive his memory.
The Minister ought to energise himself in this matter and protect the Irish users.
As effectively as the Deputy did when he was in the Department.
The Minister has done nothing at all. We have had two increases and the Minister has done nothing about them—12½ per cent. increase in two years.
Deputy Norton should allow the question to be answered.
How many were there in the Deputy's time?
They dropped the rates at my instance when I approached them in connection with cattle. They were perfectly reasonable. However, it will all come out in the report.
It will.