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Dáil Éireann debate -
Wednesday, 7 Nov 1962

Vol. 197 No. 4

Ceisteanna—Questions. Oral Answers. - EEC: Distressed Areas.

66.

andMr. McQuillan asked the Minister for Industry and Commerce whether it is a fact that under the Treaty of Rome there is no reference to the location of industry; and, if so, whether he is satisfied that the Government will be permitted to promote legislation, on the lines of the undeveloped areas legislation, designed to deal with depressed areas such as are found on the western seaboard.

68.

andMr. McQuillan asked the Minister for Industry and Commerce whether it is a fact that the normal solution of local unemployment advocated under the Treaty of Rome, Articles 123-125, is to move workers out of the distressed areas rather than to move industry into the areas affected; and, if so, if he has been able to make any estimate of the demographic changes likely to follow should Ireland become a full member of EEC.

With your permission, Sir, I propose to take Questions Nos. 66 and 68 together.

The objectives set for the European Economic Community in the preamble to the Treaty of Rome include the harmonious development of the economies of the Member States "by diminishing both the disparities between the various regions and the backwardness of the less favoured regions." In Article 2 of the Treaty it is stated that it shall be the task of the Community to promote throughout the Community a harmonious development of economic activities and a continuous and balanced expansion. Article 92 provides that certain kinds of State aid including the following may be deemed to be compatible with the Common Market:

Aid intended to promote the economic development of regions where the standard of living is abnormally low or where there is serious underemployment;

Aid intended to facilitate the development of certain economic regions.

In pursuance of the objectives set by the Treaty, the Community is studying techniques of promoting regional development and means by which the efforts of the individual countries may be supplemented by Community action. In the formulation of the common policy for the various economic sectors, including agriculture and transport, and for the social sector, account is taken of the regional implications of such policy.

At an EEC Conference on Regional Economies held in Brussels in December, 1961, and reported in the Official Bulletin of the EEC in February, 1962, it was indicated that the view of the EEC Commission is that whenever possible industry should move to the worker and that the converse should only occur in exceptional circumstances. The Commission, in co-operation with the Governments, is pressing forward with studies for the creation in less developed regions of poles of industrial development which it is hoped will in time transform the economies of these regions. One such project to be located in Southern Italy is in an advanced stage of planning. Accordingly, there is reason to believe that membership of the Community will aid rather than impede efforts to promote the economic development of less developed areas.

Would the Minister say if he has any idea from the development of EEC up to the present whether this trend has in fact taken place, that industries have moved to the workers or have workers moved to the industries? Which trend has taken place?

I think the trend has been one of industries going to the workers. In Italy, where there is practical experience of this policy, that is what has happened. As I said, as a result of the special study made, the vice-president of the Commission said that would be the policy of the Commission.

Has the Minister any figures available from an authoritative source in regard to the number of workers who have moved from southern Italy to work in Germany, in comparison with the number of workers in southern Italy who have received employment at home since the Common Market arrangement came into force?

I have not any such figures.

Is the Minister aware that the majority of workers in southern Italy who have been put into employment since EEC came into operation have received work outside Italy?

There is free movement of persons in Italy as in this country.

Does the Minister not see the implications there that the major centres of industry are attracting workers today rather than fulfilling the objects of the Treaty of Rome?

I have stated the experience in countries in specific instances, but as far as movement of workers to places of employment is concerned, that is taking place everywhere. That happens all over the world where there is freedom of movement of individuals.

Is it not a fact that we had that freedom of movement here for years, due to the fact that the Government made no attempt to provide work for the people?

Do you want another war?

They will bring back the emigrants all right.

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