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Dáil Éireann debate -
Tuesday, 3 Nov 1964

Vol. 212 No. 1

Ceisteanna—Questions. Oral Answers. - British Levy on Irish Industrial Exports.

1.

asked the Taoiseach if, in view of the altered political picture in Britain, he will initiate discussions with the new Government on the matter of Partition and trade.

2.

asked the Taoiseach (1) whether he has received any reply from the British Government to such representations as our Government has made in regard to the British imposition of the 15 per cent levy on our industrial exports to Great Britain; (2) if and when discussions are to take place between the two Governments; and (3) whether the Government has any interim proposals to assist Irish industries whose export programme has been disrupted by this development, bearing in mind its possible serious reactions on employment.

3.

asked the Taoiseach if he will make a statement, for the purpose of initiating a discussion in the House, on the present position with regard to the British imposition of a 15 per cent surcharge on all industrial imports.

4.

asked the Taoiseach if he will make a statement regarding the proposals of the British Government to impose import taxes on Irish exports in so far as these proposals are governed by various trade agreements between the Republic and the United Kingdom.

5.

asked the Taoiseach if he is in a position to state what action the Government propose to take in view of the recent import levies imposed by the British Government on exports from this country; and if he will make a statement on the matter.

On the announcement of the measures to be adopted by the British Government to rectify their balance of payments situation, including the temporary import charges on industrial imports, I requested an opportunity of early discussions with the British Prime Minister. These discussions will take place on Thursday next in London.

In his message to me the British Prime Minister assured me that it was with reluctance that his Government took the decision that they did and faced the necessity of measures which conflicted with their obligations under existing agreements; they felt obliged to impose the charges on imports of selected goods from all sources and there was, therefore, an immense difficulty in making a special exception for goods from Ireland.

In seeking early discussions with the British Government I had in mind the desirability of securing, if possible, clarification of their intentions regarding the scope and duration of the import charges and of their views regarding future trading relations with this country. While the British Government recognise that the new temporary charges are in contravention of the 1938 Trade Agreement between the two countries, it is not clear that there was full advertence to the pattern of trade between our two countries or to the fact that the impact of these charges on Irish trade with Britain in industrial products is relatively much more severe than on the trade of other countries.

These are some of the matters which I hope to discuss with the British Prime Minister.

The Government have under consideration measures to minimise damage to Irish industrial interests, if this situation should persist.

In these measures, it will be our aim to seek permanent advantages to industry and to contribute to its greater efficiency and competitiveness. So far as practicable, these measures will be directed to the assistance of firms which show that they are doing everything within their own power to solve their own problems and to increase their capacity to expand their export business when these temporary impediments come to an end.

In view of the situation now existing, I do not think it is expedient at this time unduly to press the Taoiseach as to the arguments he may advance during these discussions except, perhaps, to ask him (1), would he undertake to make a full statement to Dáil Éireann on Tuesday of next week when the Dáil reassembles after his return from London and (2), will he be then in a position to invite employers and trade unions to meet the Government to consider what joint action may seem desirable to meet the new situation for whatever period it may endure, with special reference to the preservation of employment and production until such time as normal trade relations can be resumed with Great Britain?

Can the Taoiseach say whether or not there were discussions between the two Governments prior to the imposition of the surcharge or was it merely notification by the British Government to the Irish Government that such a surcharge was being imposed?

I can say straight away that there was no prior discussion, or notification of the intention of the British Government to impose these special charges. I am prepared to make a statement to the Dáil next week and, indeed, if there is a desire to discuss the situation as it then is, I am prepared to facilitate a discussion, if not on Tuesday then at some time during the week. As regards the measures we should adopt to help to reduce the impact of these charges on Irish industrial development, I should prefer to await a later opportunity of making a fuller statement.

I should like to ask the Taoiseach if the attention of the British Government has been drawn to the fact that levies were imposed by this country years ago to meet similar circumstances and that special rates were applied to British imports.

I think that is a relevant point.

Would the Taoiseach consider that in the present situation matters might be ameliorated, perhaps slightly, if he and others responsible were to promote immediately an intensive drive to buy Irish goods?

There are measures to that end already in train.

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