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Dáil Éireann debate -
Thursday, 19 Nov 1964

Vol. 212 No. 8

Industrial Grants (Amendment) Bill, 1964: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

The House must be disappointed by the fact that the Minister has not taken this opportunity of considering the full implication of his continuation of the present policy in regard to Irish industry. Everybody knows I am a socialist and that I believe in public ownership, the development of nationalised industries and so on. I believe, at a time like this, even the Minister, with his conservative outlook on matters of this kind, without coming anywhere near to my approach to the reorganisation of society or economy in industry here, could have shown a much more enlightened attitude within the whole concept of a capitalist economy.

It appears, in regard to the provision of this money, that he is quite unwilling to accept that it is possible that the whole of Europe, or most of it, would show that there is a form of capitalism within which it is at least possible to provide for full employment. I do not see that the Minister is making any provision at all for the reorganisation of our industries or for his suggestion to industries that they should so reorganise themselves as to ensure full employment. The past is there for all of us to see. The best part of one million were not provided with jobs. It is very much more intolerable that the future does not hold out any great hopes and that there will be a continued relatively high unemployment figure and a consequential relatively high emigration figure.

As far as I can see, as well as the 8,000 for which he is going to produce jobs, there are about 12,000 who will not find jobs under the Second Programme for Economic Expansion. We shall export something over 100,000 people between now and 1970, in the middle of this Programme, which is being produced with so much extravagant praise, hopes and extravagant promises. One of the pities of our society is that we happen to be a highly romantic race, with a magnificent gift for fabrication, particularly in a literary sense. One of the things which we seem to be able to do better than anything else is to create a completely dream world, peopled by endless Walter Mitty-type characters, who believe they are operating in a highly efficient, well organised society, the tough, arrogant, self-sufficient go-ahead businessmen who are afraid of nobody, who want to stand on their own feet, and not depend on anybody but take on the toughest in Europe and meet and defeat them. That is the mentality that is built up by the interaction of the radio, television and newspapers. The widespread narcissism we find among our people is, of course, blown completely skyhigh by the relatively slight intervention of Mr. Wilson in imposing his 15 per cent levy. England sneezes and Ireland gets pneumonia is a reasonably fair comment on what happened.

These are the same people, this is the same Taoiseach, this is the same Government and Minister who promised us that we were ready and able to take on, not only the toughest in Great Britain but in the whole of Europe, that our industry was well founded, well organised and well run. They were fervent, devoted believers in private enterprise, and what do we find on the first attempt by us to stand on our feet or stand up against a little more competition? We find these people squealing all over the place asking for pity and turning to the Government for hand outs—the things they despised so much. They say we do not like this welfare society; we do not like people getting doles, free grants, allowances, and so on. Our so-called private enterprise is based practically entirely on public money, public grants, public loans. We take all the risk, they take all the profit and, in the process, they effectively rape the public through their organisation of restricted trade practices of one kind or another. So that, not only are there tariffs to protect them from outside competition, but we have restrictive trade practices within Ireland to protect them from internal competition. Therefore, the unfortunate consumer is pillaged by these people in order to create the enormous profit which they have collected in the past few years.

The profit figures I got recently from the Minister are—1957, £9.9 million, 1959, £13 million and 1961, £23 million. That is two and a half times increase in profits in two or three years and all because they grossly exploited the unfortunate Irish worker, whether this be a child labourer, a girl, a boy or the ordinary man in employment. This compared with Europe, is gross underpayment, together with gross over-pricing of Irish goods. I do not know why the survey carried out by the Economic Research Institute has not been referred to. There has been a discussion in the newspapers recently, and so far as one can make any comparison, the discrepancy between Irish and English prices is ten per cent, two per cent of which goes on distribution costs here. They are lower here than in Great Britain but it works out at a ten per cent discrepancy in Britain's favour, against our industry and against those people who are at the front gate at the moment waiting for another £10 million to come their way —not out of their profits, because they cannot afford it. It was £23 million in 1961 and I do not know what last year's figures are.

They cannot afford to pay anything. These are the self-sufficient, arrogant, we-stand-on-our-feet private enterprise merchants who are terrified out of their lives at the prospect of free competition, and the Minister knows that well. Why is it the Minister and the Government refuse to face that fact? I find it positively terrifying that the Minister should read a statement about adaptation grants where only 362 applications were made out of approximately 4,000—one in ten—and we are on the edge of this insane decision to look for full membership of the Common Market. I am glad to see there is a prospect of that being changed to associate membership. We should fall in with Greece and all those other underdeveloped countries. These are the hard facts of life which we have ignored for so long in this tiny narcissan society where we are blowing ourselves up.

We will not listen to the other point of view. When we do, we are called cranks or communists or atheists, or God knows what, so long as we can be destroyed and so long as one can then ignore reality. There are even the poor unfortunate people, the athletes, who were sent to Japan recently and the unbounded mention they got before they went, and the decimation when they arrived there completely outclassed. This painful contrast in the truth from outside always causes us a surprise because nobody is prepared to look at things in realistic terms here. That is the tragedy. When this 15 per cent came on recently and the Irish industrialists threw up their hands and all their financial advisers and economists screamed their heads off at Wilson, they knew quite well that it was precisely the same type of conservative economists—the Maudlings, the Homes and their advisers—who created that situation in Britain and that we are rapidly creating a comparable situation here in Ireland.

Unfortunately, there is no strong Labour Government here in Ireland at present to do what Wilson has done in regard to industry over there. They screamed their heads off largely because they know quite well when the Socialist advances in Great Britain, the same thing will happen here. It is as inevitable as the tide. The serious thing in this debate is the unfortunate casually in the debate. The casualty is the unfortunate worker and his children. It is he who has got hurt and it is he who will get hurt. I consider the offer of these unfortunate workers down the country more than pathetic. They have been grossly exploited in their rights to offer free labour to those people who have taken so much from them and given them so little in return. It is the mark of the workers' generosity and the employers' rapacity.

One in ten people who were so categorically anathematised in the Minister's CIO report as being inefficient, incompetent, unmechanised, badly organised and defective in seeking export markets, decided that this is a serious matter. They hear from the Taoiseach that Irish industry is strong, vibrant, dynamic and go-ahead and is as rosy as they tell one another it is. Rubbish! The 15 per cent found the Government out in that rubbishy statement, that rubbishy fairytale which, to their discredit and continued disgrace, the public media of communications are continuing to circulate as if it were, in fact, a reality in the community. Irish industry has failed to provide jobs for one million and there is another one hundred thousand it will not provide jobs for. It has exploited labour here and has provided goods at grossly unnecessarily exorbitant prices, all the time operating completely inefficient machinery, inefficient equipment, outdated, outmoded managerial and technological methods.

That is bad enough, but it is making no serious attempt to improve the position. Time and time again, and particularly from the Minister for Transport and Power, we get stupid homilies—nobody can be more stupid than that man in his speeches—to the workers about increasing production. If the Minister would give the slightest thought to increasing production, he would appreciate that the unfortunate worker has no say whatever, virtually, in the question of increasing production.

The Minister did not mention a word in his opening speech—and it is like talking about Hamlet and leaving out the ghost—about the whole question of automation. We are left as we are, in the Model T Ford era of industrial development. Does the Minister not know, if you have two men and give one man a shovel and the other a bulldozer and ask them to remove a hill, which of the two will remove it the quicker? If the poor devil with the shovel shovels hard enough, according to the Minister for Transport and Power, he will get rid of the hill before the bulldozer.

The reality is that the Irish worker is not provided with the tools to maximise production to keep in line with European production. Yet those slow, lazy, indolent, selfish people who control industry are completely indifferent to that reality. Why? For the simple reason that they know that when the time comes, the parent industry or the major industry outside will come in, start some cheap factory in some back street, work it on child labour, make an official impression with a golden handshake and the employer is all right.

But the worker is on the street if he has not gone to Liverpool for a job in Wilson's socialist England, we hope, properly cared for, clothed, fed and washed. The Minister should be damn glad to see Wilson in Government in Britain. He will have plenty of jobs and to spare. The Minister knows this quite well, and I wish he would tell the Minister for Transport and Power that he should give up this idiotic habit of asking the worker to increase production. A machine capable of turning out 1,000 candles, or 1,000 light bulbs, or 1,000 boxes of matches, cannot turn out 1,001 no matter how hard it is worked.

Unless you improve the machinery you cannot improve production and that is borne out in this matter of applying for adaptation grants. Those people have no intention of giving the Irish worker the machinery to improve production. If one looks at our export market, one realises that 75 per cent of our export goes to Great Britain. This is made more difficult at present; yet in spite of that no serious attempt is being made to diversify exports to other countries. Our industrialists have depended on the fact that the parent British factory would take the output of the Irish factory and anything else makes no difference to them.

The Minister must face the necessity for giving some direction to Irish industry to bring it into line with the needs of our society. There are very few, even conservative traditional economists, who would accept the laissez faire economic ideas of the present Government. No one of them directly has any kind of suggestion that there should be profit sharing, or encouragement to profit share, with workers. I do not agree with the idea at all, but at least there should be some greater measure of participation by the workers in industry than there is.

The Minister should draw the attention of Irish industrialists to the fact— I do not suppose they would take the slightest notice, but he should do it any way—that they have a responsibility to society. Their job is not to exploit the consumers here, the workers, in order to buy bigger Jaguars, build greater houses or go for more and more expensive continental tours. That should not be the objective of a properly orientated, civilised community, yet that is the way it largely operates here in Ireland.

The Minister should not be allowed to get away with this complacent acquiescence in the failure of Irish industrialists to show they are aware of what is coming to them in the early 1970's. He must now have very little confidence in their ability. Anybody who read the hysteria in the evening papers and the morning papers recently, the Federated Union of Employers, all these great independent industrialists, screaming for money from the public purse, must understand that these people are grossly incompetent, that they are completely unprepared for the challenge of serious outside competition.

The Common Market recently reduced their tariffs by 50 per cent. What would we do in that situation? What will the Minister do to see that this position is not recreated if Mr. Wilson decides he has, due to Tory mistakes and the idiocy of the policies over the years, to continue the 15 per cent surcharge or even to increase it? What are we to do? Are we to continue to subsidise these industrialists? What steps do they propose to take to see that serious action follows the granting of additional money towards the creation of significant export markets elsewhere than Great Britain?

The whole of the Middle East and Africa are hungry for supplies, particularly the products of Érin Foods. What incentive is the Minister giving in that direction? He intervened— and it was a welcome intervention, his first for as long as I can remember— to stop this pack of gangsters from taking something like £400,000, the produce of a penny on the gallon of petrol, from the unfortunate public, the private motorist, the public consumer. What is to happen to those people for having tried on that piece of highway robbery, which I have no doubt they would have got away with were it not for the fact that the Government's plate is so full of headaches at the moment they could not allow that particular outrage?

How many times have they increased their prices unnecessarily? How many times did the Minister not intervene? If he had intervened would he have succeeded in getting a reduction in price which has been greatly in excess of the price paid for petrol in Great Britain over a number of years? What does the Minister propose to do about the independent action of these people whenever they feel like taking another increase in profits by increasing prices to the consumer? What protection will be given the consumer? We are the consumer. We are speaking on behalf of the consumer. This sum the Minister is seeking will come from the consumer. What guarantee will the Minister give him that he will be protected from this crowd of men who have over the years behaved so completely irresponsibly in their capacity as leaders of Irish industry? What does the Minister propose to do about it? What redress have we when they continue to increase prices? Lecture the trade union movement, I suppose. Lecture the worker to increase production, to tighten his belt, to live on less. Thank heavens, we are coming to an end of the time when the worker would take that from anybody.

The reality of the situation is, as I see it, that the conflict must go on. The employer believes that wages are profits gone astray. The worker believes that profits are wages gone astray. In that is the conflict, which can only be resolved, I believe, when the worker gets the total profit of his labour in the form of wages and social services of one kind or another. That, of course, is the socialist system.

We have also had to bear, as a result of the inadequacy of these people, the remarkable shift in the impact of taxation over recent years away from the wealthy. Nobody likes taxation. In the ordinary taxation code the wealthy man paid as much as he was able and then there was a sliding scale down. Because of the Government's concern for the wealthy, taxation is changed completely. Now we find the burden of indirect taxation has changed very much in favour of the wealthy businessman and against the consumer, the ordinary worker.

Again, that is where most of this money will come from eventually— from the consumer, who is under-paid, who pays too much for whatever he does pay for, who, if he is out of work, gets relatively little or no social services of any kind. He cannot have health services because he cannot afford them. He cannot get his children educated because he cannot afford the educational services—all because of the incompetency of Irish industry. Indirect taxation is higher proportionately in Ireland than in practically any other country in Europe. The social welfare contributions paid by the employers are about six per cent here. In Europe they run at between 20 per cent and 30 per cent. No matter what way you look at it Irish industry is featherbedded, and the feather-bedding has created the useless, inefficient, decadent, selfish incompetence, which, to a considerable extent now dominates the activities of the Irish industrialists.

Mr. Ryan

I have no desire to hasten after Deputy Dr. Browne in welcoming the advent of any particular form of Government: I do not think there is any need to rejoice at the departure of one Party or another in any foreign Government. I do not think it affects our problems to any great extent. We know, in the instance to which Deputy Dr. Browne makes reference, that the remedies now being applied in Britain are those which would have been applied had the Government not changed at all. It ought to have been obvious from the experience in all European nations over the past 15 years that something of that kind would develop in Britain. It did not need the Minister to be told in confidence by Mr. Maudling some months ago that this was going to happen. It was apparent to anybody who took even a passing interest in international economic affairs.

We have been concerned in these benches about the Government's lack of real interest for the past seven years. The fact that they have been so disinterested has been proved by the shock and alarm they displayed and engendered when Britain took what was inevitable action to protect her trading and financial position. Every country in Europe without exception, every member of the economic organisations there, has had to take protective action of one kind or another in relation to its balance of payments. It was as inevitable as day follows night that Britain would have to take similar action.

The lamentable thing is that the past seven years in this country have been seven wasted years. Instead of promoting increased efficiency at from three to five per cent per annum, we have been concerned only with the value of our exports and have not measured in real terms whether our industry was becoming more efficient as the years went on. The sad thing is that, with one or two exceptions, our industry has not become more efficient. Deputy Dr. Browne is right in criticising all those who are to blame for that sorry state of affairs. If we had had a three per cent increase in efficiency in each of the past seven years we would now have an increase of efficiency of 21 per cent, which would be more than sufficient to meet the 15 per cent levy Britain has chosen to impose on something less than one-fifth of our total exports.

We are told that, because Britain has done this, it is a national disaster and a body blow. We have had the most unpatriotic display of alarm on the part of the Government, who went to London, who met the British Ministers and who came out wiser than they went in, but only as wise as the rest of the country. When they came away from Mr. Wilson they knew that the British Government meant what they said. Apparently, they did not believe it until they heard it from Mr. Wilson. Blessed are those who do not see and believe. Blessed are those who anticipate these things. Cursed is the country in which Ministers do not anticipate these things and do not accept them when they come.

Having realised no way out of their dilemma, the Taoiseach, the Minister and their colleagues came into the House and chastised us in the Opposition Benches. They accused us of doing the very thing they had done the previous week. They bewailed the position and spoke about national disaster. The only note of confidence struck in the country at the time the levies were imposed was sounded by Deputy Dillon, our leader. We are not without faith in the Irish people. We do not think they want to be feather-bedded all the time. We believe if they were encouraged in the right way through being given a proper lead they would respond. They have not been able to get that from the present Government.

One of the reasons which justify the allegations that we have wasted several years is the way in which, during periods of industrial peace, the Government have failed entirely to take any effective measures to secure a better system of employer-employee relationship. Indeed, the Government's activities in industrial relations in recent years have been quite the reverse: when there were negotiations and conferences between employers and employees, the Government sought temporary political advantage by interfering and caused those negotiations to break down.

Give one example of that.

Mr. Ryan

It happened last autumn——

On what occasion?

Mr. Ryan

—and the Minister knows it.

Give one example.

Mr. Ryan

I am telling the Minister it happened last autumn.

I have never heard such brazen-faced assertions.

Mr. Ryan

The Minister for Industry and Commerce is suffering from a bout of political colic and is apparently unable to contain himself. Whether he wishes me to say those things or not I am going to say them because they are things that need to be said.

I can deny false assertions.

Mr. Ryan

He can deny true ones also and it is no bother to him but he is going to hear these things being said. What has alarmed many people in recent years is the wide gulf existing between the ordinary rank and file of the trade unions and the trade union hierarchy. That is a sad situation and the people who suffer most under such a system are the workers themselves. Here, again, the Government have shown a considerable want of courage to take steps to end that sorry situation. What is worse still is that in a period of serious industrial strife, when the working people are up in arms against the Government, they are antagonistic to the employers because, in the situation which the Government have created, it is very wrong of the Government then to threaten to take action to solve the situation which ought to have been capable of reasonably easy solution during the period of industrial peace. Now the big stick is being waved. This is all in keeping with the clamour raised when the 15 per cent levy in Britain was imposed.

The Government know well, or ought to know—certainly their advisers should be telling them and I can only assume they are doing so— that the country is drifting into its own serious financial difficulties. Those difficulties were going to arise irrespective of the 15 per cent levy imposed in Britain. The only justification or explanation for the Government's conduct in crying about body blows and national disaster when the levy was imposed was that they wanted to blame Britain for the financial problems they themselves created. When anybody dares to criticise them he is accused of siding with the ancient enemy. If anybody doubts that let him watch the remarks of Fianna Fáil in coming months. This situation is of their own making: were it not of their own making there would be no need to be so upset at present.

It strikes me that one of the reasons why we have not made better use of the last seven wasted years is that the machinery we have to expand industry is too cumbersome: the bodies we have considering applications for grants and the methods we have of making payment of grants are too cumbersome. These bodies have a bureaucratic outlook. They are incapable of responding in the dynamic, dramatic way in which people who are successful in industry and in business must act. There is a clear need to use the pool of active, successful businessmen and industrialists we have whose aid is not being sought. One of the real difficulties is that of all the industrialists and businessmen, the number who sit on Government or semi-State bodies is few and one can always select them because of their political allegiance. Certainly, the political views of the majority of them are well known and if any vacancy occurs in any of these bodies we can always forecast for certain who is going to be appointed not because of his particular commercial, industrial or business acumen but because of his politics.

That is a filthy allegation against the men who are members of these bodies and I shall deal with it when I stand up.

Mr. Ryan

It might embarrass the Minister immensely were I to name some of them. Some of them, of course, are men of perfectly independent mind but, nevertheless, the Government's own appointees on these bodies are the very ones who have themselves failed in their own industries and the Minister knows that. In Cork, in particular, the Minister knows well who it is I have in mind as an example of what I am saying.

I have not the foggiest notion of what the Deputy means.

Mr. Ryan

Not half. It shows the Minister's general unfitness for his post if he is not aware of the particular person I have in mind. No matter what provocation the Minister may offer I am not going to name people and I shall leave that to the Minister and the people behind him.

I shall name the people the Deputy is attacking——

Mr. Ryan

I am not attacking them all but of course the Minister wishes to blame me for smearing everybody——

Who is doing the smearing?

Mr. Ryan

If the Minister and his colleagues are more particular in future about such appointments there will not be such justification for saying what I am saying.

These bodies are mainly concerned with the development of luxury and prestige products. Fashion shows are all very well. The tweed trade and the homespun trade have every reason to expand. They provide very valuable employment and are a source of great revenue but we should always be aware that we can possibly make more profit out of the sale of millions of cheap items to a chain stores in Eastern America than we can by having expensive shows of luxury products in about 50 different parts of America.

I should like to see a costing done of some of the export promotion projects of some of the Government or semi-State bodies. I have a feeling that in some cases it will take years to recoup the initial outlay on some of the so-called luxury trade promotion efforts. For instance, I think you would spend more on a cocktail party in London in endeavouring to promote a particular line and have less success than you would have in cheap Press and television advertising in the midlands or on the west coast and some of the western cities of Britain which are contiguous to us. We must be prepared to go down into the market place and not try to sell goods all the time in luxury stores. The vast majority of people in the world are under-clothed and under-fed and not concerned with luxury items and if world standards continue to improve the great prospect for this country and others is in the provision of clothes and food for the under-nourished and under-fed. We should endeavour to develop that market on a generous scale.

Most members of the House, if they are ever approached by people thinking of industrial expansion, have been concerned about the long delays that arise where the particular industry or business has a market available to it but is unable to develop the market because of lack of capital to build up stocks and in many cases stocks must be built up in order to ensure delivery dates and delivery quantities.

Again, we come up against the difficulty that many of these bodies require an element of prestige and status in exports before they will come forward with the necessary assistance but long-established Irish family businesses have more to lose than have many of the passing foreigners who are able to get money because, apparently, they have the status or are accepted as having status because they are foreign and I have known of more than one case in which a long-established Irish firm has been unable to get assistance but has been advised that assistance might be forthcoming if it could link up with some foreign concern which was in a similar line of business.

I may be wrong in this but I have advanced the excuse to people who consulted me that this was probably because the authorities felt that there would be better prospects in an export market if they had a foreign company behind them here because that company would have markets already available to it abroad which would not be immediately available to an Irish company starting off. I may be wrong in that. Perhaps that is not the excuse for their conduct but it is the only plausible one. We ought to be a little more courageous and give our own people more support and encouragement without requiring them at all times to be associated with some foreign interest.

I have already said that I think it is a mistake to direct attention to luxury items all the time and that we should be concerned with the cheap article—I will not use the word "shoddy"—but there are many people in this world who would be glad of a shoddy article if it were as much as they could afford to pay for and we certainly should try to meet the requirements of the extensive and vast poorer markets in this world. There is a serious obligation on the Government and on the State-sponsored bodies to ensure that anything produced by these concerns is not something that we ourselves would not tolerate in this country. We should also ensure that it is not something which is contrary to the law of this country.

I am aware since it was brought to my attention yesterday of some pornographic literature of the worst possible pornography which has been produced here by a firm which has received money from the Government and which is going to receive more money from the Government. I am aware, of course, Sir, that the firm in question received the money on condition that all its products were exported but I do not think that this House or the Government should attempt to justify the manufacture in this country of pornographic literature simply because it is for export abroad. If we, in our wisdom or otherwise, have decided here that we should have a censorship board in order to prevent the minds of our people from being destroyed by pornography it is entirely wrong that public money should be made available by the same Parliament as made this law for the manufacture of pornography here and the export of it to Britain and elsewhere.

I am not aware of how this particular book has come back to this country. I will bring it to the attention of the Minister and to other members of the Government because I think it is highly deplorable and immediate action should be taken to prevent any further pornography being manufactured with the assistance of money provided under the Industrial Grants Acts or in any other manner by the Irish taxpayer.

I have not the foggiest notion of what the Deputy is talking about, but, if there are particulars, if the Deputy will give me the particulars, I will look into the matter.

Mr. Ryan

This book only arrived in my hand yesterday and I had the embarrassment of opening it here in this Chamber but I was absolutely appalled that the type of this book is being set up here. I am sure the Minister must be aware of the concern in question because, as far as I know, it is the only printing concern which has received money from the Irish Government. Suffice it to say that it is a concern associated with an international multi-millionaire. It is amazing to many of us here that substantial moneys should ever be paid out of the Irish Exchequer to the assistance of a multi-millionaire but we were told that he would not come here unless Government aid was provided.

I think the Deputy is going a bit far now. In fact, I think I can almost tell him that the allegation he is making is wrong or, at least, the direction in which he is making it. Give me the facts.

Mr. Ryan

The Minister might readily say that I was wrong but I will show him the book which contains on the reverse side of the title page the name of the firm in Dublin credited with setting up the type for the printing of the book in question. The contents of the book speak for themselves and it does not say that the pornographic pages were set up elsewhere. I will give the particulars to the Minister.

It does not seem to me that there is at present in the industrial grants legislation any power to control the type of products which may be furnished by a firm. All that one can do at the moment is to get the intentions, to get the plans, to consider the expectations of these firms and their prospects, but, once they start operatting, I do not know what power, if any, the Minister or the State bodies have to control the operations of them thereafter. It does seem highly desirable that public moneys would not be spent on the production of anything of that particular nature and there are other goods which might be produced which for other reasons, national and moral, might be considered undesirable. Some powers should be taken, if necessary in this legislation, to prevent that kind of thing being done. I will, therefore, pass on to the Minister with the least possible delay the product in question as soon as I get permission from the person who sent it to me and also after it has been considered by the Censorship of Publications Board.

We should all welcome and be willing to support a Bill which is being introduced to ensure that adequate money is available for the provision, through An Foras Tionscal, of grants to attract new industries, grants to extend existing industries, adaptation grants to enable our industries to meet the more competitive conditions into which we are moving and, lastly but not least, grants to assist industrialists who are adversely affected by the imposition of the British levy.

I am personally concerned about the alarming number of people in my own constituency who have already lost their employment as a result of decisions taken by management allegedly to offset the effects of the British import levy. In one industry alone, I am aware, over forty men have been already let go and more men will be let go next week and the week after. That is due to a decision on the part of the particular industry to cut down on the maintenance and repair staff, who, in addition to maintenance and repair work were also, I suppose, making additions to buildings. I refer to men who were regarded as permanent maintenance personnel.

It is my belief that any worthwhile export industry would make a decision to live on its own fat during the present difficult period in order to hold the export markets which it has and in order to keep the valuable staff it has built up and has employed over a period. These are side effects and whether the fact of the levy is being used as a means of quietly getting rid of men of that description for a time, or not, I do not know. I doubt if it is because in the case I have in mind these people have been employed over quite a long period. What makes the matter more serious is the fact that at the same time there is a strike of builders' providers and there is no place to which these men can move and get employment.

If anything can be done to ensure, through the various grants being made available, that the normal development of industry is maintained at its previous levels, the Minister should use his influence in that regard; otherwise, I greatly fear that a large number of men will lose their employment and will lose it coming up to Christmas when people like to have that little bit extra and certainly do not like to be registering at the employment exchanges.

There is a particular need at the present time to expedite the establishment of new industries and the enlargement of existing industries so that more employment opportunities may become available. I have said in this House before that I personally do not believe that the machinery we have in the State at the present time is adequate to do that. Deputy Corish referred to the delays of which he was aware and to which people coming in here proposing to establish industries objected very seriously, and they were not inclined, in many cases, to wait.

I have myself had the experience of assisting a few firms to go about getting grants and establishing industries. I could not speak too highly of the people I met in the Industrial Development Authority and An Foras Tionscal but it is my view that there are not sufficient people employed in An Foras Tionscal or in the Industrial Development Authority where these proposals are being processed. It is taking much too long to have them processed because there are a large number of proposals at the same time before the Industrial Development Authority. They are all at various stages and the whole process is a very protracted business. Many people coming here from outside the country just cannot understand all these delays and are inclined to become impatient. Not only could these negotiations be speeded up but there are many other ways in which these people could be facilitated.

The one central body should deal with all the problems that confront firms coming here from outside to establish industries. We here are familiar with all the processes and with all the legal requirements, town planning and the various other difficulties that arise even when a decision has been reached. The process of actually establishing an industry here is a difficult one for foreigners and the brochure which the Industrial Development Authority circulate in various parts of the world gives them the impression that here are grants available and ready to be handed out. They are not aware of the very great difficulties that exist and that have to be overcome before they get to the stage where an industry is actually established.

Another problem of which I became aware in the course of my experience is this: proposers coming in here find it hard to convince the people who are responsible for making decisions that they are a solid and a worthwhile firm and that they are prepared to set up an industry that will have an export content of so much, an employment content of so much, and that will measure up to certain specified targets. If we could get it established that grants would be made available at a future date, subject to firms of that sort measuring up to pre-determined targets, it would be a very important thing. Many proposals are held up and many, perhaps, are turned down because the people responsible for sanctioning these grants are not certain, and went as far as possible to be certain, that these industries will succeed.

If it could be made clear to proposers that, provided what they are saying is true, they will get this money, that they will have to wait for it up to this point where they have proved themselves over a period—it need not be a very protracted period; two or three years, perhaps—there are many outside firms in a position to establish industry here in that way. All they would need is the assurance that when they reach the stage, a certain amount of support will be forthcoming.

It is unfortunate that one of the things that has to be proved is that it would not be possible to establish an industry unless this money was obtained. It must be shown that there is insufficient money. That is wrong. It is wrong to be trying to induce industries here where it must be shown there is insufficient money available to see the project through, but that is one of the conditions for grants through An Foras Tionscal.

There should be greater discrimination in favour of industries with raw materials produced in Ireland. Industries of that sort have a much greater attraction for us here. I am not sure that they are favoured in the way they should be when consideration is being given to the size of the grant available for particular projects. One of the things I have in mind and which I feel we have very much neglected over the years is the potential of our fishing industry. We have not made the grants nearly attractive enough to bring big people into the fishing industry here in order to realise the potential of the seas around the country. That is the type of industry to which we should hold out more attractions, even more than we normally give to industries based on raw materials which have to be imported from outside or for industries which are merely assembly industries.

In relation to our insistence that grants will be given to industries only if they go to certain parts of the country, we can very easily overdo it. The important thing is to get industry into any part of the country and to overcome all the obstacles, first of all, to speed up the machinery for the giving of grants and then to get the fullest possible co-operation from the local authorities and all other people concerned in the establishment of industries.

Everybody in the country, without exception, should be extremely anxious to co-operate in this very important work. In a country where we have so many people still unemployed—we have over 43,000 unemployed at the moment and it is a problem which is on the increase, due to the increasing number every year leaving agriculture —the co-operation that is needed would be forthcoming from all sections in society who can contribute but there should be an attempt at the top to co-ordinate that effort and to repose in one body the responsibility for going out to meet industrialists and saying to them: "If you have a proposal, we shall solve any problem you put up to us. You will not have to go here, there and elsewhere in the country to get your problems solved."

When we succeed in establishing an industry, we lose interest from there on. There should be a body to follow up the various industries that have been established to see if they have continuing problems and if they have, to see how they can be assisted. It is only in that way we can ensure that the maximum progress will be made in industry and the greatest possible number of people will be employed.

I shall not detain the House very long but there are one or two matters on which I want to make observations and to put questions to the Minister. It seems to me that in introducing these industrial grants the Minister had an opportunity of giving us some sort of review of the industrial position, but that he failed to do entirely. In effect, what he said was that we were increasing these grants by £10 millions for the purpose of expanding industry, and he said little more than that. In the light of our present trade balance, which appears to be reaching almost alarming proportions, is the Minister satisfied that a policy of laissez faire is a satisfactory one for the country? I should like to refer him to the Government's plan for economic expansion. As I recollect it, the Government recognise that agriculture, although it may be expanded, cannot do a great deal more to advance our economy; neither can it be expected to deal to any great extent with employment. Of course that position obtains everywhere. It is not peculiar to this country.

Is the Minister satisfied the existing industrial set-up is producing results? Is he satisfied it is likely to offset the extremely unpleasant balance of trade that we appear to be facing and, if he is not, surely the House is entitled to a more extensive dissertation on the situation relative to industry as a whole. Further, is the Minister satisfied that the policy adumbrated is a satisfactory policy? In the brochure circulated, we are offering any amount of benefits—free grants, the building of factories for foreigners, and so on— and that offer does not seem to have given us the return we might expect. I venture to suggest it has not given us that return for two reasons. First of all, we have laid ourselves open to this difficulty: a foreign firm gets an order for £500,000, perhaps and, as the Minister knows, there is in practically every country today, outside of the developing countries, of course, full employment with a concomitant shortage of manpower. There is a tendency for these firms to come here to avail of all the benefits we offer, produce the materials as quickly and as expeditiously as possible, and sell in the market available. If that market does not continue, they just close the door, turn the key and shut down the factory. I do not want to drag the East Galway by-election into the debate but it happens that I was down recently in Portumna fishing——

For trout or for votes?

Portumna is on the edge of the constituency. I was told there was a firm there operated by foreigners and on the very day I was there the factory was closing down and 15 or 20 people found themselves out of employment. Does the Minister not consider a change in the policy desirable? There is quite a considerable amount of capital available and people are looking for good investments. If we were to reverse our policy and had Irish industries run on Irish capital, concentrating on securing business executives from outside, with ability and knowledge of how to run factories we could, I think, achieve a better result.

I want to cite to the Minister an industry in my constituency in the town of Gorey. It is a leather industry, run and controlled and managed by expert outside foreign executives. First-class material is produced. Practically everything produced is exported. So far as I know, these people are not looking for any money from the State. They are financed entirely by private enterprise capital and they can compete successfully with other countries. I think that is the type of industry at which we should aim. The policy should be to encourage Irish industrialists worthy of the name to establish industries here and the grants and aids and subventions given should be given for the purpose of securing the best advice and management that can be got. Executives in the upper echelon of industry earn something in the neighbourhood of £7,000 a year. If grants were given to enable these people to be paid that salary here, we would be able to procure the best to run our factories competently and properly.

On the other hand, at the other end of my constituency, there is a firm which is not being properly managed. The Minister knows it. The employment content has fallen to zero. All prospects of employment in the area are destroyed. Deputy Clinton mentioned the difficulties foreigners have who come in here. I do not think there are any difficulties at all. It is very difficult to get them to come here to set up industries because all these big combines, such as the Federation of Industries in the Federal Republic of Germany and the Agence France, and so on, rely in the first instance on a strong domestic market. Here we have a dwindling population and I have had great difficulty in trying to encourage foreign industrialists to come in here. They are more inclined to go to countries like the smaller Republics of South America, which are developing and in which the economy is improving. There is the added attraction that the populations are continually rising. Our disadvantage is that our population is continually falling.

I am sorry I had to refer to East Galway and I hope it will not have any effect one way or the other on the election. The Minister may think I was speaking specifically for that purpose in Dáil Éireann. Of course, I was not. I suggest to him, however, that if he hopes to get the expansion necessary here if we are to rectify our balance of payments, there will have to be a completely new reorientation of industry. Coming in here year after year looking for more grants to carry on the existing policy will not produce the results. The facts and figures are there. We have a growing imbalance of trade with practically every country. One of two things must be wrong: either our system is wrong or else our production is not up to the required standard.

A third question enters into it and that is the question of being able to sell on a market. Old-established firms have a greater advantage here than we have and I think that was in the minds of those who directed our industrial policy originally; by getting these foreign firms to come in and set up here there would be no difficulty about markets because they would have good and tried markets available and a sales organisation. If the Minister is inclined to adopt my suggestion now to encourage Irish capital, with safeguards in order to secure the industrial personnel required to make industry a success, he will find he will get a better result and possibly a better balance of trade in the next 12 months when he comes in here again, if he is still Minister for Industry and Commerce looking for the necessary moneys to carry on his policy.

The debate today followed the usual pattern of debates on industrial grants legislation. There was, of course, the complaint that I did not give sufficient information in my opening statement, the suggestion being that I should run through the whole gamut of industrial and economic activities for the purpose of introducing this Bill. Generally there are very few subjects on which there are not more frequent debates in Dáil Éireann than on industrialisation generally. I would remind the House that the time for the general debate on all aspects of industrial and commercial activity is on the occasion of the annual debate on the Estimate for the Department of Industry and Commerce.

Apart from that, complaints were made today that certain information was lacking and these were obviously made in ignorance of what the facts are. Deputy Corish even went as far as to allege that I was not oncoming about reports of adaptation councils. I do not know from Adam what he means by that, because adaptation councils work within industry. They are groups of people or firms, catering for a particular industry, who come together, their purpose being to rationalise where rationalisation is in their best interests, and engage in bulk buying or bulk selling where these activities will tend to improve the competitiveness of these industries. I should like to say there has been no secrecy whatever about the publication of publishable matter dealing with our industrial re-adaptation policies.

For example, everybody knows that there have been 26 survey reports by the Committee on Industrial Organisation. These are reports on hundreds and hundreds of firms in these 26 industries. They have been most thorough reports which have highlighted the advantages these firms or industries have, and have pointed out their defects and made recommendations as to how they can overcome these defects. They have said how many people work in the industry and how employment might drop in free trade conditions if certain improvements they recommend should not be carried out and, in many cases, how employment might well rise if the recommendations by the Committee on Industrial Organisation are carried out.

I cannot for the life of me understand why allegations should be made that the House and the country are not getting sufficient information as to what requires to be done or is being done to improve our competitiveness. As I said, there have been 26 reports, 18 of which have been published and the remaining eight of which will be published over the next few months. These reports have been on industries in which many firms are engaged in the same type of operation. Side by side with that, there are many firms carrying on industrial activity in which there are few, if any, other firms engaged in the country. The surveys in these cases are done on an individual basis and by and large the reports on the surveys are not made available for publication simply because of the identification of the particular firm. One of the recommendations of the Committee on Industrial Organisation was, of course, that as a result of the recommendations, adaptation councils might be set up. Today, some 20 adaptation councils have been set up. Many are working very effectively; some have been slow to get off the ground, I will readily admit. I think it was Deputy Cosgrave who mentioned one, the footwear industry, which has been working hard and which has adopted certain measures which will be conducive to the maintenance, and I hope, the increase of employment in these industries.

There are other industries for which adaptation councils would not be suitable. Two of these industries are the radio industry and the chocolate and sugar confectionery industry, and the industrial reorganisation branch of my Department—whose function it is to follow up the firms on whose activities reports are made by the Committee on Industrial Organisation to ensure that the recommendations will be carried out to the fullest possible extent—are satisfied that in the case of these few industries an adaptation council would not be suitable. Nevertheless, in one case, the motor assembly industry, which was specifically mentioned by Deputy Corish, while an adaptation council was not considered appropriate for it, has set up a joint committee amongst the motor assembly firms themselves. As I said in the House a couple of weeks ago, in reply to Parliamentary Questions, there appears to be now a degree of confidence among motor assemblers which is completely different from the tone set by the report of the Committee on Industrial Organisation in connection with motor assembling.

Deputy Cosgrave mentioned, among other things, the problem that will arise as a result of automation and greater technical advances in industry, the problems of retraining and resettlement, and I take it that resettlement will cover the particular problem he had in mind of a man having to move from one part of the country to another to follow a particular trade, or to take up a job to which his particular aptitudes are suited. The House will remember that when our application for membership of the European Economic Community was first made, or shortly after it, at any rate, there was set up an interdepartmental committee to examine the working of the European Social Fund, that is, the Fund the Common Market countries set up to facilitate retraining and resettlement. The original purpose in setting up that committee was to examine how that Fund could be applied to Ireland on our accession to the Common Market and what obligations it would impose on us as a people and on the Exchequer. When it became obvious that our application was not being proceeded with, we nevertheless directed that committee to continue the examination of the problem generally in anticipation of the coming to this country of a greater degree of automation and the problems arising from automation and technical advances.

This committee has of course reported and its report has been published. Deputies will remember that it recommended amongst other things accelerated vocational training, training in the job and advance training, but since then, other groups set up under State auspices have examined different aspects of this very same problem. For example, the Committee on Industrial Organisation has a report entitled "Certain Aspects of Redundancy". As well as that, the Irish National Productivity Committee has published a report entitled "Adoption Of An Active Manpower Policy", and the National Industrial Economic Council has published what I think they call an interim report on "Manpower Policy". The House will readily agree that there is every relationship between manpower policy and retraining and resettlement.

Another group has been set up to examine and co-ordinate these reports. In the meantime the Government have taken certain preliminary decisions. I think those decisions were announced recently by the Taoiseach. The first is that a detailed scheme for the provision of training and retraining for industries will be worked out in consultation with employer and worker interests, and any necessary legislation will be provided as soon as possible. Without making any promises in that respect, it may be practicable to introduce that legislation in the Dáil during the coming session.

Secondly, it was decided that a small inter-departmental committee of senior officers should examine and report quickly on the development of agencies to meet the foreseeable needs in the national manpower policy. The specific function of this group will be to examine the different spheres of industry and try to determine in advance whether more of a particular skill would be required, and whether less of another skill would be required. An advance assessment of the position will be made so as to ensure that where we might now have an excess of a special skill, the necessary retraining will be carried out, and that skill diverted into channels which are more necessary; and in reverse, where we have not enough of a particular skill, channelled in the other direction.

Thirdly, it was announced that the same inter-departmental committee would also examine and make recommendations on the most effective method of making financial provision for redundant workers. It is, possibly, too easy to look to the Government to provide any moneys that will be required in the case of inevitable redundancy—redundancy of people who have not the skill to be retrained as a result of automation or other technological changes, or even where they have the skill and we have not the capacity within ourselves to take up those skills. There must be tripartite sharing of this burden between the State, the trade unions and the employer organisations. That is one of the three matters that are at present under examination as a matter of urgency.

Can the Minister say whether it is proposed to operate the redundancy scheme in advance of becoming a member of the European Economic Community?

We have not got the final report yet, but I should imagine that if in the type of activity we are trying to anticipate, redundancy or the necessity for retraining as a result of technological changes comes about for us more quickly than membership of the European Economic Community, it would be reasonable to assume we would apply those measures in such circumstances.

I promised Deputy Dr. Browne that I would reply in detail to supplementary questions he asked me on this subject during Question Time this afternoon. Deputy Cosgrave referred to the slowing down in the momentum that seemed to have developed in Irish industry in the years while our application for membership of the EEC was pending. I think it is true that there was a certain slowing down. Notwithstanding the fact that our application was held in abeyance, we, nevertheless, continued to urge firms generally to carry out readaptation and reorganisation where that would seem to be necessary, in order to prepare for what we regard as the inevitable freer, or completely free, trade within the seventies.

I had occasion earlier to complain that the number of applications for adaptation grants was very small, but there was a marked increase in the number of applications in recent months although not as much as I should like. The fact that we have some 350 applications is an indication, I think, that Irish Industry is alive to the necessity for gaining for itself greater efficiency to meet greater competition. Deputy Corish and Deputy Dr. Browne talked about a figure of about 4,000 firms. That includes all kinds of firms such as small joinery works, and other small firms which may employ as little as five or ten people. In many cases they are craft or traditional industries, and no amount of adaptation would help them. I am reasonably satisfied that a good cross-section of Irish industry is taking advantage of the adaptation grants.

I was surprised at Deputy Corish's assertion that no indication is being given to him, or to the House, as to what type of industry is seeking such assistance, because if he looks at the latest report of Foras Tionscal for the year ending 31st March, 1964, he will find at Appendix 5 a long list of the type of industries, and the number of firms, which have made application for adaptation grants. The figure in this published report is 282, covering some 30 or 35 types of industrial activity. It shows also the number approved, and the number rejected so, again, I cannot understand Deputy Corish's complaint about lack of information when most of the information he wants is available in published documents.

A number of Deputies raised questions about the preponderance of foreign investment, and at least one Deputy suggested that if you had a different coloured skin or a different accent from an Irish skin or accent, you would be more welcome in the portals of Foras Tionscal. I am sick and tired of saying in this House, and outside it, that that is completely untrue and false. However, we cannot have it both ways. It is accepted on all sides of the House, I think, that it is desirable to attract foreign investors, not so much for the sake of the investment, but to get the technical knowhow and marketing contacts those outside people have. Surely if we have an organisation like the Industrial Development Authority, whose function it is to seek suitable types of industry and investors for this country, we must give them a chance to work. If we do not want that, we should tell them to stop. I do not think any Deputy will complain about the activities of the Industrial Development Authority. At most they will complain about their lack of success, but I do not admit that there is a lack of success.

Deputy Dr. Browne gave us his usual homily on socialism. At least he appeared to have the merit of sincerity, but he had the demerit of making extravagant and almost hysterical charges against individuals. I will not waste the time of the House in defending industrialists against charges like that. I hope that when Deputy Dr. Browne calms down he will realise that every industrialist is not dishonest and an exploiter of labour; that every working man is not being exploited, and that there is room for improvement in certain aspects of labour.

Deputy Dr. Browne suggested that no man can improve his output unless the machine on which he works is properly serviced and brought up to date by the employer. We all know that there are faults on both sides. There is no use in heaping all the sins on one side or the other.

Unlike Deputy Dr. Browne, however, who, apart from a few hysterical outbursts, had the merit of being sincere, the obvious insincerity of Deputy Ryan is something I might expect from him. He referred to the past seven years as seven wasted years in the economic advance of the country —the wasted years in which we more than doubled our exports, in which we increased our GNP from one per cent to 4½ per cent per annum, in which we reduced emigration figures by about four times, in which, for the first time we succeeded in providing more industrial jobs per annum than the number of people leaving the land and, again, for the first time for generations, we succeeded in reversing the trend of emigration.

I shall not waste the time of the House in going over the three years that preceded those seven allegedly wasted years. Deputies opposite will know well the great change in the conditions that marked the introduction of the First Programme for Economic Expansion and that has continued through the first year or so of the Second Programme for Economic Expansion.

I do not know what Deputy Ryan is referring to in relation to a pornographic publication. It is a pity he should make allegations like those here without giving somebody a chance to check up on them. I always resent people who for the sake of making headlines, say extravagant things without at least giving the person who can do something about it an opportunity of looking at the case. This is the first I heard of it today. I hope Deputy Ryan will follow up the allegation he has made.

Deputy Ryan also made allegations against the people who give their time and service on the boards of bodies dealing with industrial grants. He called them inefficient, bureaucratic and owing their membership only to Fianna Fáil. He made his charges lightly and recklessly, without any regard for the truth of the situation. The existing members of the IDA have been there for several years now. Most of them were appointed, as far as I remember, by the former Deputy Morrissey when he was Minister for Industry and Commerce. Members of Foras Tionscal were appointed before that. Two of these men were civil servants and the Chairman, Dr. Beddy. Subsequently, two members were added because of extra work being done in Foras Tionscal—one a former civil servant, well known in Irish insurance life and the other an existing civil servant in the Department of Agriculture —in order to bring certain agricultural knowledge to the board of Foras Tionscal.

How, in the circumstances, can Deputy Ryan make such reckless charges against these men who are doing this work, one might almost say voluntarily in many cases because the amount of remuneration that these part-time appointments carry is very limited and is certainly not commensurate with the ability of these men and the amount of time they give to the task? These allegations are made for whatever political kudos Deputy Ryan hopes to get out of them. I am sorry for wasting the time of the House in dealing with the charges but, as Minister for Industry and Commerce, I have to defend these men from reckless charges of this nature.

Again, to show his lack of knowledge of this whole subject, Deputy Ryan said we should abandon the idea of trying to sell quality goods, or luxury items, as he called them, abroad and instead go in for mass-produced cheap goods. A most elementary look at the pattern of trade throughout the world will indicate even to Deputy Ryan that it is not possible for this country to compete with the low-cost countries of the Middle East in those cheap mass-produced goods. We should be completely swamped in any markets we tried to compete in for these cheap long-run types of merchandise. It has been the policy of Córas Tráchtála to push what we think we can do best, that is, luxury goods, quality goods, into markets where we know they will be appreciated and where the value of the contribution by Irish labour will be fully appreciated and properly compensated.

Deputy Clinton, I am glad to say, gave due credit both to the IDA and Foras Tionscal. He has personal experience of them. He is associated with at least one industrial promotion that these bodies handled in the recent past. He returns, however, to an old complaint about there being more than one body—that instead of having the IDA and Foras Tionscal the promotional body and the grant examination body respectively there should be just one. We had experience of that when the IDA, early on, handled, as well as their promotional activities, the grants made available by the Industrial Grants Act, 1956. At that time, Foras Tionscal had already been established to handle the grants made available under the Undeveloped Areas Act.

As a result of their experience at the time, the IDA recommended to me that the promotional aspect only of the task should be left to the IDA and that the grant application side should be given to Foras Tionscal, as under the Undeveloped Areas Act. Apart from that experience, common sense would indicate to anybody that an organisation which is a promotional body, which goes out of the country or encourages those within it, should not be the one to knock an application if a proposal were found not to merit the giving of a grant.

Deputy Esmonde made the complaint that industry was not offsetting the deficit in our balance of payments and, if not, why not. The simple answer is that industry is only one part of our economic activity. Agricultural and other exports—invisible, in other words—all these together are designed to help our balance of payments problem. We have a big balance of payments problem which we hope will not get serious by reason of the imposition of the 15 per cent surcharge on our industrial goods in Britain. I believe we can overcome the difficulties we are now facing.

Deputy Dr. Browne suggested that we were the only country that kicked up a row about the imposition of these duties. He said our industrialists threw up their hands in horror and that it indicated our weakness in our dependence on the British market. Every European country and every combination of countries in Europe made bigger noises than we did. Naturally, any country whose trade might be affected by the unilateral act of another country, especially in breach of an existing agreement, will make complaints and representations about the effect of such acts.

Question put and agreed to.

Next Wednesday?

When will the amendments be ready?

I would say on Wednesday next. If they are not ready in time for circulation and consumption, I shall postpone it.

Committee Stage ordered for Wednesday, 25th November, 1964.
The Dáil adjourned at 5 p.m. until 3 p.m. on Tuesday, 24th November, 1964.
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