I move:—
That a sum not exceeding £1,178,400 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, 1960, 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 net Estimate for the Department of Industry and Commerce of £1,758,400 for the year 1959-60 shows an increase of £100,120 compared with the provision for last year. The principal increase arises under subheads which are directly related to the programme of economic expansion, that is to say, in the Grants-in-Aid to the Industrial Development Authority, to Córas Tráchtála Teo., and to An Foras Tionscal. There is a reduction of £41,672 in the Appropriations-in-Aid mainly on recoupments from the American Grant Counterpart Fund.
Industrial production and employment showed a continued recovery from the setback suffered in 1956. For the year 1958, the provisional index of the volume of production of manufacturing industry was four per cent. higher than in 1957. The average number of persons engaged in manufacturing industry increased in each quarter of 1958 as compared with the corresponding periods of 1957. The improvement in the volume of industrial output last year extended over most of our industries, although some of the food processing industries were affected by the bad harvest.
The recovery in production and the expansion in employment which were recorded were very welcome, but it is fairly obvious that development is still much too slow in relation to the country's needs. The development of industrial activities, however, appears likely to accelerate. I know that figures of new factories do not mean very much because they do not reveal the scope, size or development prospects of the concerns enumerated.
In the last financial year, that is, the 12 months ended 31st March last, the records of the Department show that 95 firms either commenced manufacturing operations or extended the range of their production. At the present time, there are quite a substantial number of proposals for new industries, or for new lines of development by existing industries, before the Department and the Industrial Development Authority. A count I had made last week indicated that there are at present 180 such proposals under consideration. Some of these relate to projects of considerable magnitude by Irish standards. It would, of course, be optimistic to assume that all of them will proceed but, if a reasonable proportion go ahead, then it could be that the country is on the threshold of another major break-through in industrial expansion. As Deputies are well aware, however, there are factors in the international situation which could possibly act as a delaying process. Certainly the interest which has been shown in Irish industrial possibilities is satisfactory and justifies expectations that our progress will continue.
The White Paper, on Economic Expansion, which was published last November, has given rise to widespread and very realistic discussion of our economic future. That is very welcome. Indeed, the Government, in adopting the rather unusual course of publishing the economic survey which Mr. Whitaker, Secretary of the Department of Finance, prepared at the Government's request, aimed at provoking and providing material for a discussion of that character. As the House is aware, we have been endeavouring to provide suitable conditions for development. We have recognised that progress in the industrial field must depend to a considerable extent upon the enterprise and skill of business people and upon the co-operation of employers and employees. That applies particularly to Irish firms and to those of our own people on whom our main reliance for industrial expansion must be placed.
I have stated here on earlier occasions that there are no facilities of any kind available to non-residents for promoting industry here which are not equally available to Irish citizens. Soundly conceived proposals for the expansion of existing industrial concerns, or for the establishment of new industries by Irish interests either on their own account, or in association with external capital and technical participation, are very welcome. As I have stated in the past, a large part of our hopes for the realisation of industrial expansion depends upon their being forthcoming. Those who promote projects of that character can be assured that their proposals will receive not merely sympathetic consideration on my part but also all the practical assistance which it is within my power to give. The aim will be at all times to co-operate fully with them in securing the implementation of their projects.
The White Paper on economic expansion indicated that various interests in the country—employers, management, labour and so forth—were forming a committee to promote productivity, with special reference as to how this country might most effectively participate in the work of the European Productivity Agency and take full advantage of the Agency's services and resources. That committee is now in existence and one of its immediate aims is to ascertain the requirements of Irish industry in relation to European productivity agency products and to sponsor the formulation of suitable Irish projects for consideration by the agency as well as to promote Irish participation in other projects initiated by the E.P.A.
Personally, I regard the establishment of this National Productivity Committee, with the active and enthusiastic support of the representatives of the trade union movement and the employers' organisations, as an event of major significance in the country's development and, indeed, one of the most encouraging events recorded in the past year or, indeed, for many years. Apart from the activities which come under the review of the National Productivity Committee, we have been giving consideration to the adequacy and suitability of our arrangements for facilitating industrial research.
A complete review of the Industrial Research and Standards Act, 1946, is now being undertaken, with the object of determining what changes should be made in the functions, powers and resources of the Institute, to enable it to co-operate more effectively, and to give very active attention to the problems which face our industrialists. The present statutory limit on the amount of the grant-in-aid payable annually to cover the expenses of administration of the Institute will clearly require to be raised, in any case, to cover the cost of operating the new laboratories which are now being constructed, and which will be used for testing materials of all kinds, and which will represent a considerable addition to the facilities of the Institute.
During the year, Foras Tionscal approved grants amounting to £733,895 for industrial projects located in the undeveloped areas, bringing the total grants approved for that purpose to date to £2,232,740. Of the total amount of grants approved to date, approximately £1,110,684 has been paid out, leaving outstanding commitments of £1,123,056. These approved projects assisted by Foras Tionscal, under the provisions of the Undeveloped Areas Act, represent a total capital investment of £5½ million, and are expected to employ about 4,000 workers; 38 of the projects assisted by Foras Tionscal are in production, and there are also 22 further projects for which assistance has been promised, for which the amount of grant has been determined, but which have not yet reached production stage. Among these further 22 projects yet to reach production stage are a substantial number which are related mainly to export trade. Grants under the Industrial Grants Act, 1956, were made to 17 new projects representing commitments in grants amounting to £439,350, of which £145,415 has been paid, leaving £293,935 to be discharged in respect of a number of projects not yet completed.
The House is aware that the Industrial Grants Act provides for the granting of financial assistance, subject to certain limitations, to industrialists in that part of the country to which the Undeveloped Areas Acts do not apply. This is administered by the Industrial Development Authority and, as was announced in the White Paper on Economic Expansion, it is intended to introduce legislation, I hope, during the present session of the Dáil, to transfer the administration of the Industrial Grants Act to Foras Tionscal, thereby enabling the Industrial Development Authority to concentrate on its promotional activities, and for certain other reasons as well, which, perhaps, I need not elaborate at this stage. The proposed legislation will also provide for changes in the scope of the Act, to make it, I hope, more effective without, at the same time, weakening the policy of inducing industrial development in the undeveloped areas.
I do not intend to say more about that intention at this stage because, as I have said, a Bill is being drafted and the Dáil will be considering it in this session. In the case of legislation of that kind, once the intention to promote it has been announced, it is desirable that there should be no undue delay in proceeding with it.
The scheme for providing grants for industrial firms towards the cost of engaging industrial consultants and technical experts with a view to improving efficiency and productivity has been yielding very encouraging results indeed, and for that reason is being continued. Grants to firms for the purpose of employing these experts and consultants are now made on the basis of one-third of the cost of each technical assistance project. The interest in this scheme which has been displayed reflects the growing appreciation within industry of the necessity for maintaining efficiency at the highest level, and of keeping in line with technical changes occurring elsewhere.
In the course of some public statements this year I referred to the attitude of foreign life assurance offices operated in this country towards the investment of a reasonable proportion of their funds here. During the course of the past week, a preliminary discussion on the matter took place in London with representatives of the Life Offices Association and it gave prospects of a satisfactory outcome. A further meeting to discuss the matter in greater detail is being arranged and will be held when certain statistical matter which is required has been collected.
Deputies are aware of the drive which has been launched under the auspices of the Industrial Development Authority to encourage external investment in industry in this country where it contributes to the country's economic expansion and the establishment of industries of a kind which we are not likely to secure without external aid. Members of the Industrial Development Authority have visited a number of continental countries for the purpose of bringing to the notice of industrialists in those countries, who may be interested in setting up factories abroad, the many facilities and substantial advantages this country has to offer to such industrialists. The response to these efforts has been quite encouraging. A number of factories have already started production while others are being planned as a result of that campaign.
Early last year I arranged for the Industrial Development Authority to appoint a representative in New York whose functions it would be to put before United States industrialists the attractions this country has to offer as an investment centre. As the House is aware Cyril Count McCormack was appointed and a branch office of the Industrial Development Authority was opened in New York as his headquarters. I recently received the report of the Industrial Development Authority upon the operations of that office and it indicates there are good prospects for a number of industries, as a result of these efforts and that a number of proposals have reached an advanced stage.
In conjunction with the efforts of the resident representative an advertising campaign was pursued in suitable American publications and there are plans laid for intensifying these efforts in this year. In order to pursue the campaign in European countries more vigorously I have agreed to the appointment, by the Industrial Development Authority, of a travelling representative in Europe. That appointment has recently been made and an advertising campaign in suitable European papers is being planned in connection with the appointment. May I say that the possibilities of such a campaign were brought to my notice forcibly following on my visit with an economic delegation to Italy on the invitation of the Italian Government?
I had the opportunity there of speaking to a meeting of industrialists, organised by the Milan Chamber of Commerce, on Irish industrial possibilities and, as a result, two or possibly three industrial enterprises will be established here with the assistance of an Italian firm, the director of which emphasised in the course of conversation with me last week that he had not been aware of the facilities and advantages available here prior to that visit, and who expressed the view if they were more widely publicised others, beside himself, would be interested. It will be appreciated this country cannot afford to maintain an organisation and to conduct a publicity campaign on a scale which would ensure that direct contact would be made with every industrial firm in Europe but the new enterprise of the Industrial Development Authority in the appointment of the travelling representative, and the publicity campaign which will support his work will, I am confident, be productive of quite useful results.
The highlights of the year, as far as mining was concerned, was the commencement of production by St. Patrick's Copper Mines Ltd. at Avoca. It went into production, as Deputies know, in October of last year. Having overcome certain production difficulties, which emerged in the early stages, the company are now working up to full capacity and are employing about 500 workers. The copper concentrates and pyrites are being exported through the port of Arklow. Fortunately, copper prices which had slumped for a time have returned to a more satisfactory level and are now near, or at, the figure of £240 a ton. They have remained, indeed, at that level for quite a considerable time.
The collapse of lead and zinc prices involved the suspension of production by the Silver Mines Lead and Zinc Company and by the Abbeytown Mining Company in Sligo, but both companies carried on exploration, the former on the extent of barytes deposits in Tipperary and the latter on Sligo lead and zinc resources. Indeed, the Sligo Company reorganised as the New Abbeytown Mining Company Ltd. resumed production in January of this year on the conclusion of a successful drilling scheme towards the cost of which a State grant was made available.
The Allihies, West Cork, exploration was continued by a subsidiary of Can-Erin of Toronto and exploration has reached a point where a decision will shortly have to be made by that company in respect of major development and production.
In January last year, as the House was informed, I concluded an agreement with the Texas Oil Company which proposes to undertake a comprehensive programme of exploration in Ireland. Prior to concluding that agreement I had received a number of proposals from international groups for the granting of facilities for oil exploration and, having appraised the merits of the various proposals, I decided those made by the Ambassador Oil Corporation of Texas offered the best prospects of a competent and comprehensive scheme of exploration being undertaken by private enterprise. Legislation to give effect to the agreement with the Texas firm, and to provide a practical basis for oil exploration and development, is being prepared and will be introduced shortly. I think I should stress again that the prospects of oil resources being discovered in this country are very doubtful.
The first stage of the technical assistance project for coal exploration in the Leinster and Connacht coalfields commenced with the placing of a contract with a British firm of drilling contractors who began drilling operations last March. That scheme will be financed by an E.C.A. grant of £80,000 from the Counterpart Fund. The scheme, which will take about three years to complete, will be carried out in three stages, the first of which has now begun. It is hoped it will reveal new deposits of coal, both in the vicinity of the existing coal mines and in virgin ground, as a result of which we may eventually be able to produce from home sources our total requirements of anthracite coal and, perhaps, even have an exportable surplus.
In accordance with the White Paper Programme for Economic Expansion a scheme is being prepared for the granting of financial assistance to persons, undertaking by private enterprise, schemes of exploration or development of the country's mineral deposits. The aim of that schemes will be to encourage the development by private enterprise of such schemes as have apparent economic possibilities.
I am considering the question of having legislation prepared in respect of mines and quarries and in respect of explosives and other dangerous substances. The legislation would be concerned primarily with questions of safety, health and welfare. The existing law dealing with these matters is scattered over numerous enactments, some of which go back nearly 100 years, and it is obviously desirable to consider the extent to which the law needs to be codified, amended and generally brought up to date. I should mention, too, that I am arranging for the setting up of a small ad hoc committee representative of employers and workers to consider whether, and, if so, to what extent the Truck Acts require to be revised in the light of modern conditions.
When introducing the Estimates last year, I mentioned that construction had commenced on the refinery at Whitegate, County Cork, and that it was anticipated that the refinery could come on steam about the middle of this year. Deputies will have learned from the newspapers that the first cargoes of crude oil arrived recently at the refinery and that production has commenced. The expedition with which the work of construction was carried out has merited a very well deserved tribute from the promoters to the Irish workers employed on the construction, whose efficiency and productivity contributed to the completion of the operation in advance of schedule.
As the House is aware from the White Paper, the Government have approved in principle proposals of the Board of Irish Steel Holdings Ltd., for major extensions to the steel works at Haulbowline, County Cork. The Board are preparing detailed plans and estimates for further consideration by the Government. I anticipate that their firm proposals will be ready for submission to the Government in the very near future. The development proposals include the extension of open hearth furnace capacity, the casting of large ingots which will be rolled in a new mill into a wide range of finished and semi-finished sections, the adaptation and mechanisation of existing steel-making and rolling plant to meet the requirements of the larger and more varied production and the eventual manufacture of sheet steel from bars produced in the new mill. The primary purpose of the proposed development is to increase the output and the efficiency of the mill and thereby reduce production costs and selling prices.
With the closing of parts of the former Great Northern Railway Company's lines and the taking over by C.I.E. of the portion of the remainder of that Company's undertaking within the State, the prospect of extensive unemployment amongst the employees of the G.N.R. Dundalk Works was foreseen. To deal with that situation a company known then as the Dundalk Engineering Works, Ltd., was formed for the purpose of taking over and developing those works. An independent commercial organisation, in which virtually all the capital so far issued has been taken up by the Industrial Credit Co., Ltd., has been built up consisting of five manufacturing companies and a holding and development company. The manufacture of light motor cars and certain agricultural machines, mainly for export, is proceeding. Work is also being carried out for C.I.E. and for Board na Móna. The construction of equipment for foundry operations and the manufacture and servicing of heavy road vehicles are proceeding. It is the hope and intention that when these companies have been successfully established the shares will be offered for public subscription.
Due to these activities it has been possible to avoid so far any permanent dismissals. As I informed the House recently, they have temporarily laid off at present fewer than 100 while, at the most recent date for which I have figures, 852 workers were in employment. I am sure the House will agree with me in expressing appreciation of the efforts of those who were given what appeared at the time to be a very difficult, if not an impossible, task and to express the hope that their plans will fructify as they intend and that these very important new industrial enterprises in Dundalk will continue to grow, giving still further increased employment for the benefit of that locality and the country as a whole.
As the House knows, the Government have agreed to reimburse the company for the weekly ex-gratia payments which they have been making to those temporarily laid off and also for ex-gratia severance payments which may be made to workers whom it is not found possible to re-employ. The company are not yet in a position to say whether there will be any such workers. The use of the word "may" in my previous sentence relates to that prospect, not to the intention. Any workers whom it is not found possible to re-employ for any reason will, of course, receive this ex-gratia payment.
In view of certain discussions which have been proceeding in Wexford, and particularly a recent debate reported in the Press at a meeting of the Wexford Corporation, I think I should make it clear that these plans for Dundalk involve no conflict with Wexford engineering firms. Certain of the statements made at the meeting of Wexford Corporation were misinformed. There is, of course, as the House knows, no subsidy of any kind for the Dundalk undertaking and it is not intended that there should be a subsidy. There is no Government capital invested in that undertaking. The enterprises there are financed by share capital subscribed initially by the Industrial Credit Company and by loans negotiated in a normal way. Indeed the Bonser Company at Dundalk, which is the concern which has an interest in certain types of agricultural machinery, has also substantial private shareholding. There are certainly no advantages or facilities available to that Dundalk company which are not equally available to all other firms in the country.
There have been some discussions with the management of the Dundalk concern and with the representatives of the Wexford engineering undertakings regarding development possibilities in relation to agricultural machinery generally. A meeting which I had hoped personally to attend has been arranged between them in order to inform each other of the development possibilities that are foreseen. It is a matter of some concern that there is still a very substantial importation of agricultural machinery on which duty is chargeable—types of machinery which it is contemplated could be manufactured in this country on a scale which would meet the country's full requirements. Discussions I had with the representatives of the Wexford engineering firms were directed towards consideration of the possibility of securing an expansion of their production so as to eliminate that unnecessary item from our import statistics.
To avoid any misunderstanding, I think I should make it clear that the Dundalk concern is primarily concerned with exports. The scale of its operations and the type of equipment it is proposing to produce would not make production for the home market alone an economic proposition. The Dundalk concern does not propose to engage in the production of dutiable agricultural machinery which is the main output of the Wexford firms and in the production of which they have the most immediate prospect of expanding the scale of their operations.
I should like to refer briefly to an important development which took place during the year in the repair and shipbuilding industry. Contact was made with the large shipbuilding firm, Verolme United Shipyards of Rotterdam, who became interested in the development of the Cork Dockyard. Negotiations with the firm resulted in an agreement whereby the Cork Company has been acquired and is now being reconstructed to enable vessels of up to 47,000 tons to be repaired.
It is the intention to undertake the building of vessels up to 50,000 tons. Deputies will have seen the announcement from the Company that their development programme is being expedited so that it is now contemplated that they will be in a position to take orders before the end of this year for new ships to be built at Cork. That will be of great benefit to that locality. It is contemplated that when the development plans are completed some 1,800 workers will be employed at the shipyard.
As already announced, the Government have reserved the Blackwater bog, County Offaly, as a source of milled peat for an ammonium nitrate fertiliser factory. Further investigations are being undertaken on the Government's direction in order to bring the matter to the conclusion stage as soon as possible. I have set up a committee to examine the merits of various proposals which have been received from firms of international standing in the chemical and fertiliser industries in regard to the erection of the proposed factory. When the committee's report has been received, I shall then arrange to bring the matter before the Government for a final decision.
Turf development has recently been before the House in the matter of the Turf Development Bill passed last March. It is probable that additional capital will be required by Bord na Móna in 1961 when the House will have a further opportunity of reviewing the position. The generating capacity of the E.S.B. on 31st March, 1959, was 668.5 megawatts. Of that total, 399 megawatts were based on native resources and 289.5 megawatts on imported fuel. That latter figure for imported fuel includes 95 megawatts at the Pigeon House, Dublin, which is now operated only as a stand-by station. A further capacity of 120 megawatts, based on milled peat, has been approved. Of this, 40 megawatts are at Bellacorick, County Mayo, and 40 megawatts are at Rhode, Offaly. These stations are under construction. A further 40 megawatts at Rhode are expected to come into commission in 1964.
The generation from native resources in the last financial year was 64 per cent. of the total. That figure would have been greater had it not been for the very bad weather which drastically reduced the output of Board na Móna. The demand for electricity which became almost static in the early part of 1957 resumed expansion later in the year. In the past financial year, it was approximately 7 per cent. more than in the preceding year. The average rate of annual increase on which plans are now being based is 7 per cent.
Rural electrification is proceeding according to plan. Forty-five areas and 1,600 new rural consumers were connected during the year. The subsidy of 50 per cent. was restored from 1st April last and the scheme is expected to be completed in 1962. A Bill to provide for increased capital expenditure by the Board and for other purposes will be introduced in the course of the next few weeks.
This year, Fuel Importers (Éire) Limited is being wound up. As the House will recollect, that company was formed in 1940 at the beginning of the second World War for the purpose of acquiring supplies of coal then available from Britain in larger quantities than importing merchants could handle. In the following years of fuel scarcity, the company was given the task of maintaining supplies of fuel and handled in or about 6,000,000 tons of turf, firewood and charcoal. In view of the fact that no shortage of coal was likely to occur in the foreseeable future it was decided in December, 1957, to liquidate the company's stocks which then amounted to about 100,000 tons of coal dumped in the Phoenix Park. These stocks were finally cleared in April last.
On the winding up of the company, I think the Dáil will expect me to pay tribute to those who undertook its direction during that protracted period of 19 years. There were changes, no doubt, in the Board over the period but during all the time that the company was in existence a number of public-spirited-men undertook to give their time and attention to its affairs without fee, without even travelling expenses, and thereby did a public service for which they deserve commendation. I have often felt that we in this country lack something in having no established procedure by which public service of that kind can suitably be recognised. If we had such a procedure or arrangement, the directors of this company would certainly qualify. As it is, they have nothing to show for all their long years of unpaid labour except the usual formal letter from the Minister at the end of it, thanking them for their services. I am sure it will hearten them to know that the Government and the Dáil do recognise the value of the contribution they made to the solution of the country's problems during a very difficult period.
During 1958, exports, which stopped slightly short of the exceptionally high figure of 1957, the highest ever recorded in the history of the State, came to £130.7 million. That figure, as I have said, was slightly below the 1957 record but it was reached not withstanding a setback of over £7 million in cattle exports. Substantial increases in the export of bacon, frozen beef, mutton and lamb, chocolate crumb preparations, beer, glass and glassware, jewellery, personal clothing and pharmaceutical products, helped to make up that decline in cattle shipments.
The increase in the adverse balance on visible trade was more effected by an increase in imports than by the slight decline in the export figure. As the Dáil will have surmised, the bad harvest made it necessary to bring in much more than the usual quantities of grain. Heavy purchases of plant and equipment for the new oil refinery and other industrial undertakings, together with the purchase of new ships and aircraft, also contributed to the increase. In spite of the higher deficit on visible trade, the net balance of payments deficit for 1958 is estimated at round about £1,000,000 when invisible exports are taken into account. As the balance for 1958 was on the credit side, £9.2 million, it can be said that for the past two years the State has at least been on an even keel.
On the capital side, the country's external resources have increased and there was an increased inflow of capital on foreign account during the past year. The incentives in the way of tax remission on exports are now showing their effect. There is noticeable a growing sense of optimism spreading through industrial and trade circles which it is hoped will continue to activate managements and penetrate also to the ordinary industrial workers on whom, in the final analysis, the whole export drive depends.
During the year, Córas Tráchtála extended its activities in the field of export promotion, market research and development and a further extension of these activities is planned in the coming year. I hope shortly to be in a position to introduce the promised Bill to establish Córas Tráchtála as a permanent State agency for the promotion of exports. The current advertising and sales campaign in the United States which commenced in February, 1958 was reflected in the last quarter of 1958 when exports of Irish whiskey increased by 12.8 per cent. over the exports for the corresponding period in 1957.
More significant, perhaps, is the fact that for the same period the American importers of the principal brands of Irish whiskey recorded a sales increase of 52.73 per cent. over the corresponding period for 1957. To continue and extend that campaign a sum of £80,000 is being provided this year. From available information it is fair to say that a situation has now been reached which is highly favourable to the establishment of Irish whiskey as a permanent dollar earner. The situation needs to be vigorously exploited while the opportunity is there. It is essential that the extended campaign which will be conducted by Córas Tráchtála should be supported by intensified brand advertising by the individual distillers. The needs of home industry necessitated the continuance of control on the export of certain materials and control is also applied to certain items of a strategic character.
I am sure Deputies will join with me in congratulating the Irish Trade Union movement on the successful culmination of its efforts to achieve unity. The movement can now give expression to a united view on major national problems and with little doubt this will add immensely to its strength and prestige. Those of us who have had the opportunity of personal contact with them know that our trade union leaders are very responsible people. I feel sure that they will ensure that the movement will exercise its newly found strength with intelligence and forbearance and thereby contribute materially towards the success of the Government's plan for national economic expansion.
It is satisfactory to be able to report that we have enjoyed a year of comparative quite in industrial relations. That is due in no small measure to the work of the Labour Court and to the fact that employers and workers continue to secure the assistance of the court for the peaceful settlement of trade disputes. During 1958 the court made recommendations in 136 cases and the vast majority of these recommendations were accepted by both employers and workers. In addition to contributing towards the settlement of trade disputes by the issuing of recommendations, the court was able to arrange for the peaceful solving of a considerable number of disputes by means of conciliation conferences. At my request the court is continuing its efforts to evolve, in consultation with the interests directly concerned, a satisfactory solution to the dispute in connection with the container traffic in the port of Dublin. That dispute has been with the court for over a year and has proved to be a most thorny problem. I am not without hope, however, that the court will be able within the next few months to promote a reasonable and equitable solution.
I mentioned last year that I was co-operating with the European Productivity Agency in setting up a body to carry out research work in connection with human problems arising out of technological advances. The committee, which includes social scientists as well as representatives of workers and employers, has since been established. Members of that committee recently attended a seminar in Zurich entitled "Fitting the Job to the Worker", which was organised by the European Productivity Agency. The committee is now actively studying the whole subject and its application to industry in this country with a view to determining the most suitable lines for research work.
I think that it would be appropriate that I should refer briefly to the International Labour Organisation this year as it is the 40th anniversary of the founding of that organisation. As the House is aware, the object of that organisation is to secure improvements in the conditions and living standards of all workers. In its earlier years, the emphasis was on the preparation of international standards in the form of conventions about hours of work, safety, health, the protection of women and young workers, and so forth. These conventions are open to ratification by the member States, and ratifying States are required to ensure that their domestic legislation and national practice are in accordance with the provisions of the conventions ratified. Since the end of the last World War, there has been a shift in emphasis in the I.L.O. from standard-setting towards activities of a more advisory nature. It is now spending a considerable amount of money on technical assistance for undeveloped countries.
Ireland, as the House knows, has been a member of the organisation for a very long time. Every year we send a tripartite delegation, representing Government, employers and workers, to the annual conference. These delegations have always taken a very active part in the deliberations of the conference. In all, the I.L.O. has adopted 111 conventions and Ireland has ratified 39 of these. Many of those we did not ratify relate to matters not applicable to our conditions at all— conventions dealing with colonial territories, plantation workers and the treatment of indigenous populations. Furthermore, while the principles underlying many of the conventions are fully accepted and indeed practised in Ireland, we have not been able to ratify them because our domestic legislation differs in some minor details from the provisions of the conventions, or because the matter of wages arrangements and similar matters are handled in this country by the process of collective bargaining. Nevertheless, our record in regard to ratification is quite satisfactory. Only 14 of the 80 member States of the I.L.O. have ratified a greater number of conventions.
Ireland will continue to take an active part in the activities of the organisation. We regard it as a most valuable way of ensuring that the Government and both sides of industry will keep in touch with international thought and practice in labour legislation and relations. In modern conditions, it is essential that this country should not become isolated from the most up-to-date trends in these fields.
Deputies will be aware that I recently made an Order bringing the Office Premises Act, 1958, into operation as from 1st of last month. The Act provides in a general way that the occupiers of offices employing more than five persons must provide suitable and adequate conditions in their premises for the safety, health and welfare of their workers. I am also empowered to make regulations setting out the minimum standards to be observed in regard to various aspects of office accommodation. I have made such regulations as regards the minimum space to be allowed to workers, the minimum temperature to be maintained in offices and the minimum sanitary, washing and cloakroom facilities. These regulations will come into operation on 1st September next. Regulations dealing with the standard of lighting in offices are at present being prepared and they also will come into operation on 1st September. A summary of the main features of the Act and the regulations has been prepared in my Department and is available to the public free of charge.
I should like to take the opportunity of expressing appreciation of the valuable assistance given to me by the advisory council established under the Act in the formulation of these regulations to which I have referred. That Council has held 13 meetings since it was established in April of last year. It includes representatives of workers, employers and sanitary authorities under an independent chairman. Its function is to advise me on matters relating to the administration and enforcement of the Act. They have not had an easy task. As Deputies are aware, the legislation is very largely a pioneering measure, and the Council were breaking new ground in the consideration of the recommendations which it should submit for standards dealing with the well-being of office workers.
During the past year, activities under the Factories Acts were also maintained at a high level. Factory inspectors carried out almost 15,000 visits to about 9,000 factories. It will be appreciated that some factories had to be visited more than once to determine whether defects noticed during earlier visits had been put right. The inspectors have reported to me that they are continuing to get the co-operation of the vast majority of factory occupiers in their task of achieving the highest possible standard of safety, health and welfare in factories. The regulations under the Factories Acts are being revised and modernised and I hope during this year to promulgate new regulations for the building and dock industries in relation to the use of electrical plant and equipment. In the preparation of these regulations, the advice of the factories advisory council will be available.
I am sorry to say that progress in regard to the establishment of safety committees by workers continues to be slow. So far, these have been established in only about 20 factories. At my request, the Congress of Irish Trade Unions is now considering what steps can be taken to promote a livelier interest by workers and their trade unions in this matter. Experience, both here and abroad, has shown that very worthwhile results can be achieved by safety committees in reducing the incidence of accidents in factories.
Deputies will recall that the new Apprenticeship Bill received its Second Reading towards the end of last year. Since then, the detailed provisions of the Bill have been exhaustively examined by a joint committee of employers' and workers' representatives under the chairmanship of an officer of my Department. The joint committee have made 32 agreed recommendations for the amendment of the Bill. Amendments to give effect to all but two of these recommendations are being circulated. Where conflicting recommendations were made, the existing provisions of the Bill will be allowed to stand for the consideration of the House.
The Restrictive Trade Practices Act has been in operation now for six years and I think it is true to say that in that period it has enabled substantial progress to be made in eliminating the most objectionable features of restrictive practices in many trades. Practical experience suggests that some modifications of the Act are desirable in relation to the scope of public inquiries which may be undertaken by the commission and the procedure for the review by the commission of the operation of Ministerial Orders made under the Act. I have accordingly decided to promote legislation to amend the 1953 Act in these respects, and I hope to bring that measure to the House later in this year.
In this country, the law with regard to hire purchase was amended and brought up to date by the Hire Purchase Act, 1946. Primarily designed to protect the interests of persons who hire or acquire goods under hire purchase or credit sale agreements, that Act establishes and defines the rights and liabilities between sellers and buyers of goods and also deals with the powers of the Courts in legal proceedings arising out of hire purchase transactions. A detailed examination is being made of the manner in which the 1946 Act is operated. That examination reveals that certain changes in the law are desirable. A new Bill, incorporating the amendments which I consider to be necessary, is at present in course of preparation and will, I hope, reach the Dáil this year.
I think I should refer at some greater length to the situation which has developed, or looks like developing, in regard to the European Free Trade Area. The negotiations for the establishment of the European Free Trade Area which had been going on from early in 1957 continued throughout 1958 under the supervision of an inter-governmental committee comprised of Ministers representing the 17 O.E.E.C. countries. The negotiations were suspended in December last, following a statement by the French Government that the Free Trade Area on the lines which had been under discussion would not be acceptable to them.
At that meeting of the Council of the O.E.E.C. in December, the British Paymaster-General, who had been chairman of the inter-governmental committee, reported to the Council of the O.E.E.C. that the committee had been unable to secure the establishment of a European Free Trade Area to take effect parallel with the Treaty of Rome.
The Treaty of Rome, which set up the European Economic Community, was, of course, not affected by the suspension of the Free Trade Area negotiations. Under that Treaty, the six signatory countries reduced their customs duty by 10 per cent. in favour of one another on 1st January last and, likewise, they enlarged their industrial quotas by 20 per cent. and raised all their small or nil quotas to figures representing three per cent. of their national production of the goods concerned. These are the first of a series of tariff reductions and quota increases which each of the six is committed to operate until 14 years from now, at the outside, all the trade barriers between them are removed and the six countries of the Community will, in fact, be a common market protected against the outside world by a common tariff and operating a common commercial policy in their relations with other countries. Some of the O.E.E.C. countries outside the Community were deeply concerned at the emergence of what they regarded as trade discrimination against them by the Community countries, particularly in goods subject to quota.
Between January and April last, discussions went on between Britain and France to see if, pending the conclusion of a satisfactory multilateral agreement, increased quotas could be negotiated for goods of special interest to the two countries. When these discussions were started, the intention was that any arrangement made between these two countries could be used as a pattern for other bilateral arrangements and also to operate until some form of long term European Economic Association to replace the Free Trade Area would be negotiated.
The official Anglo-French talks finished in April and finished with agreement for increasing certain quotas by each country in favour of the others. Details of the agreement were conveyed confidentially to us and to the Governments of the other O.E.E.C. countries outside the Community, in accordance with the understanding which was reached within the O.E.E.C. some months ago. Certain other of the O.E.E.C. countries have also been negotiating with France for the purpose of making temporary bilateral arrangements on the pattern of the Anglo-French arrangement. Discussions with France concerning our trade arrangements with that country are, in fact, in progress this week.
Deputies are aware that I went, yesterday, to London to discuss with the British Paymaster-General, who represents the British Government in Free Trade Area matters, proposals which have been put forward by the Scandinavian countries for a Free Trade Area embracing six or seven West European countries outside the Common Market and that my aim in arranging these discussions was to ascertain the British attitude to these proposals and to discuss their implications in relation to Anglo-Irish trade. I should, perhaps, make clear that these Scandinavian proposals, if I may so describe them, have not yet been the subject of serious negotiation, although we understand that detailed discussions of them at official level is about to begin in the early future. It is, of course, by no means certain that an agreement will be found to be possible at all, but I understand that the intention is that, if these discussions at official level should reveal the likelihood of agreement, further negotiations at Ministerial level will then be arranged.
Deputies, perhaps, may have seen in some of this morning's British newspapers statements which indicate that the British Government have decided to participate in these negotiations and intend to work for the conclusion of an agreement for the establishment of a limited Free Trade Area embracing these six or seven countries. I have stated that it is not certain that an agreement will be found to be possible, but I think that in our consideration of this matter at this stage we must assume that agreement will be reached. All that exists at the moment, I understand, is a series of proposals prepared in Sweden, which have not yet been subjected to any very critical examination, but the general nature of the proposals is known and the general intention of those who will be sitting down in the near future to consider them.
These proposals contemplate a complete dismantling of industrial tariffs at a much more rapid rate and to be completed in a much shorter time than is visualised in the European Economic Community or is provided for in the Rome Treaty. The proposals relate only to industrial tariffs and it is apparently contemplated that, between the countries participating in this agreement, all such tariffs will be completely eliminated within five years, that some of them will be eliminated over a much shorter period and, indeed, in other instances, that tariffs will be removed immediately on the completion of the agreement. It is clear, also, that the proposals involve the retention by each of the countries participating in the agreement of their full commercial freedom; that is to say, there is no intention to establish a common external tariff or to concert their economic policies. What is intended is a Free Trade Area, by and large, much the same in character as was being discussed in Paris for the whole of Western Europe and not an economic community such as the Rome Treaty aims to establish.
I found that the British Government hold the view, which I expressed in the Dáil last week, that the ultimate objective should continue to be the conclusion of an agreement covering all the 17 O.E.E.C. countries, concluded under the auspices of the O.E.E.C. They apparently share the opinion, which has been expressed in many quarters, that the objective of a comprehensive agreement under O.E.E.C. auspices is more likely to be attained by the formation of a second trading group, as is envisaged in the Scandinavian proposals, than by any other method now open. Indeed, Mr. Maudling, the Paymaster-General, expressed himself to me as fairly optimistic about the eventual outcome of these events.
I have made it clear here—and I think I should reiterate—that we would much prefer that all these negotiations could be brought back under the auspices of O.E.E.C. and, indeed, would like to see that done forthwith but I must be realistic and say that does not seem likely to happen. It seems, I think, clear that the whole trend of events throughout the world is towards the formation of economic groupings between nations. Indeed, it appears likely that, in the future, small nations like ours will have difficulty in maintaining viable economies outside the ambit of wider economic combinations.
That conclusion, if it is correct, must have considerable implications for this country, and must obviously influence our economic thinking, particularly in the field of external trade relations. However much we may regrete the emergence of what may prove to be two competing economic groups in Europe, there is nothing we can do to prevent it beyond expressing the hope that the belief which has been expressed that it will be eventually possible to bring them together and get back to a comprehensive Western European agreement will prove to be well-founded.
At first sight and in advance of further progress in the negotiations, it does not seem that we have any interest in these Scandinavian proposals. They offer us no advantage in the British market which we have not got already under existing trade agreements. The opportunities for increasing our trade to the Scandinavian countries, to Austria or Switzerland, do not appear to be considerable and a recent survey carried out by Córas Tráchtála in Sweden would support the conclusion that we could not hope to get in a free trade régime with these countries increased trade on a scale which could come near to compensating us for the consequences on our industrial development of rapidly removing all our protective tariffs and quotas on industrial products from these countries including Britain.
In regard to the question of our participation in the initial negotiations on these proposals at Stockholm, that does not appear to be desirable. I presume that we would be invited if we requested it but it would not seem right that we should request an invitation to attend at the negotiations if we do not seriously contemplate joining the agreement, and the implications of such a request, the suggestion——
