asked the Minister for Industry and Commerce if he will make a statement on the closing of certain flour mills owing to the adoption of the principle of rationalisation in the industry, as reported on the 10th instant, in particular, as to the effect of this action on the principle of decentralisation of industry; and whether he would favour the adoption of a policy of rationalisation in the textile and footwear industries.
Ceisteanna—Questions. Oral Answers. - Closing of Flour Mills.
15.
The flour milling industry has, since 1933, been subject to strict Government control which, in the interest of public policy, restricted natural economic changes in the structure of the industry. As I have previously indicated in the House, the fall in flour consumption since the war has created serious problems of excess productive capacity in the flour milling industry and I do not think that the course now decided on by the millers, and regarded by them as the only satisfactory course for dealing with this excess capacity, can be taken as affecting general principles of policy in relation to other industries.
In regard to the Textile and Footwear Industries, a Report by the Committee on Industrial Organisation on the Linen, Cotton and Rayon Industry has, as the Deputy is no doubt aware, been published and Reports on the other branches of the Textile Industry and on the Footwear Industry will be forthcoming in due course. The Report on the Linen, Cotton and Rayon Industry recommends certain measures of adaptation, and it may be anticipated that adaptation measures will be recommended also in relation to other industries. How adaptation is to be effected is a matter which will call for careful consideration in the case of each industry and it is my hope that existing units of production will be maintained in operation as far as is consistent with the need for competitiveness in free trade conditions.
Is the net result of this new development that the entire flour milling industry of this country will hereafter be controlled by two groups of industrialists—in fact, by two firms?
No, that is not the case. There are several other private millers, independent of those two groups, who are operating very successfully.
Perhaps the Minister will tell us some day where they are.