One matter that the Minister did not refer to in the course of his speech was how it is proposed to finance the new company to be set up when this Bill is passed. I understand from the Schedule that it is proposed to transfer the property and liability of the existing company to C.T.T. and to that extent it may have a certain initial foundation. I should be glad, however, to hear from the Minister what arrangements will be made for permanent financial backing.
This company has done very useful work since it was established and has helped many individual traders and companies in getting markets and in facilitating them in developing trade. While that has been the case, I wonder to what extent the work of this company has been impeded by Government policy in other directions. I referred to this matter on a previous occasion, but I want to do so again now, because if there was ever a case of one hand not knowing what the other was doing, it is evident in some of the figures published in the booklet, Economic Development. It concerns one of the most valuable export trades which we had and which I hope, as a result of efforts being made, is again growing.
On page 170 of Economic Development, figures are given for the export of spirits, mainly whiskey, in the three pre-war years, 1937, 1938 and 1939. These figures show that in those years a total of 230,000 gallons a year with an average annual value of £179,000 was exported. Details are then given of the countries, the quantities and the value in each case. Then we come to the post-war period and we find that the export of whiskey grew steadily from 1948 to 1951, reaching a peak in that year of 438,000 gallons, valued at £558,000. It goes on to say that they declined steeply in the next three years but have since begun to recover.
If you examine the exports for 1951 and contrast them with the figure for 1954, you find they were less than half in 1954 what they were in 1951. There was a subsequent recovery in 1956 and 1957 and I gather from some recent information that that trend is continuing. Here is the real kernel of the matter. Córas Tráchtála were provided last year with a special sum of £25,000, in addition to the money which was provided by the distillers who were concerned to develop the market for whiskey abroad. At the same time the effect of taxation in the 1952 Budget, and for the next couple of years, was such that it depressed the whole export trade in whiskey.
I know it may be argued that exports of spirits are not liable to taxation, but the fact that exports dropped substantially is clear evidence of the deterring and retarding effect which heavy taxation on spirits has had on this old-established industry. It is an industry which gives male employment, uses raw materials which are home-grown and home-produced, and provides a manufactured article second to none in quality.
I notice that one of the specific responsibilities assigned to the new Board is that "it shall be the duty of the Board to advise the Minister on matters affecting or in any way connected with the development of exports". I hope that when this new Board is set up, it will quite freely tender advice to the Minister, and through him, to the Government. It is bad national policy, on the one hand, to have a special board or company charged with the responsibility of developing exports and, on the other hand, the effect of Government policy operating to depress that industry and reduce rather than expand the exports concerned. I mention that because I believe it is a good example. I do not say that there are not a number of other comparable examples but that certainly is one. Another example which was referred to on a previous occasion was our valuable export trade in biscuits. Happily, recent information on that matter shows an improvement again. Surely it is to the advantage of a company of this sort that it should advise and investigate, and supply information on the various factors which affect the trade and which limit or facilitate, as the case may be, the development of the trade.
One of the problems confronting firms in this country is that a great number of them are small firms. Some of them are family businesses run by individuals and their resources are limited. We have had experience of traders making efforts to get into the export market and finding administrative or other obstacles put in their way and then, for one reason or another, they had not sufficient resources available to pursue the matter sufficiently vigorously, or they had not available to them the technical advice or assistance necessary if they are to develop a technique of getting into the foreign market.
While this country has a number of trade agreements with foreign markets—I have in mind our agreements with Continental countries—in all those agreements, the balance of trade is heavily adverse, so far as we are concerned. While on paper an agreement may entitle us to facilities or to the right to send goods into these markets, nevertheless, in practice, on occasions we have found administrative difficulties put in the way of individual traders, or some other restrictive practice applied, which prevented exporters from getting a foothold in the market concerned.
In matters of this sort, a body such as C.T.T. can be of invaluable assistance and it has, I believe, helped many people very considerably since it was established in 1951. It was originally established as a result of the findings of a committee which was set up by the first inter-Party Government. After very careful consideration, that committee recommended its establishment. Steps were being taken to have it established when there was a change of Government and the succeeding Government proceeded with its establishment. Since then, I believe that decision has been more than justified, and the work which Córas Tráchtála has carried out has reflected credit on the Director and staff of that organisation.
I hope, therefore, that when it is established on a more permanent basis, when its functions are set out as they are being set out in this measure and when the company has statutory recognition, the full potentia-utilised of this organisation will be utilised to the maximum extent by all concerned with developing their export trade and that in whatever sphere they are this board will be in a position to assist them; but, on the other hand, I hope the board itself will freely express its views to the Government, or anyone else, on all the steps or measures that should be taken to develop our export trade, and that they will say what factors they consider are militating against the proper development of the export trade of this country.
I do not know whether it is possible for the Minister to give any indication of the volume and value of exports developed as a result of the initiative or efforts of Córas Tráchtála. That information may be difficult to give because some of their activities are additional or ancillary to the individual efforts of traders and companies. If, however, some indication could be given of the extent of the exports which have been developed as a result of the activities of Córas Tráchtála, it might be of interest. Some matters may arise on the Committee Stage and further consideration of the measure can be deferred until that Stage.