The Minister will remember that on Second Stage there was some discussion about the possibility of extensive take-over operations being conducted by outside companies or firms against firms established here. Some concern was expressed that the method whereby firms might be acquired could lead to undesirable consequences. When that was referred to, the Minister said the matter had been adverted to during the discussions of the Special Committee on the Companies Act, and that, if necessary, the Companies Act could be amended to deal with the problem if it arose, that it was more appropriate for inclusion within the framework of the Companies Act than in this measure. I should like to know from the Minister whether he has since considered the matter further, and if there is any evidence or any information available to him which would suggest that there has been any acquisition by outside interests, acquisition to such an extent that it would be regarded as interfering with, or having consequences or possibilities which might interfere with the running or operating of concerns in the national interest or in accordance with what is agreed policy on these matters.
Private Members' Business. - Control of Manufactures Bill, 1964: Committee and Final Stages.
Since we discussed the Bill here a fortnight ago on Second Stage, there have not been any take-overs of a kind which I would regard as endangering, in any way, our economy. In fact, I have heard of no such take-overs of any magnitude at all. There have been, in recent months, forms of new investment that might sever all take-over bids in relation to different forms of industrial and commercial activity in the country but these have in no way been a threat to the security of the industries involved. On the contrary, they have increased the viability of these undertakings.
This Bill will, of course, to an extent, facilitate the greater injection of capital into smaller industries. This injection of capital would have been a deterrent under the Control of Manufactures Act, as it stood. There are some companies whose capital holdings conform with the Control of Manufactures Act, that is, that the necessary percentage of non-Irish holdings is within the prescribed amount. It has been found in many cases these industries have been incapable of expansion because of the inability or the reluctance of some shareholders in these companies to inject further capital. It is believed in many cases, if such further capital were available, it would not only be of advantage to the company but the market outlets which would follow would be to the great advantage of the particular undertaking and certainly to the economy as a whole.
The new Bill, the repeal of the Control of Manufacturers Act, is designed, to an extent, to facilitate this form of investment. I can assure the Deputy I shall continue to keep this form of new capital injection under review to ensure that it will not take the form of interfering with the viability of the companies concerned which would be, in the long run, a detriment to our economy. I have said, and the House is aware, that this will be a matter which will come within the ambit of our companies legislation and I can assure the House that this whole aspect of outside capital will be kept under close and constant review.
There is general agreement that the amendment of this measure is to attract and facilitate outside capital for the purpose of promoting industrial development and expansion. I have some particular cases in mind in which I think there is a distinction between new enterprises or enterprises which are established by means of external capital or partly by external capital and partly by finances provided by home resources. There is also the case of the already established concern which may be open to acquisition as a result of this. There would be objection in these particular cases if such should occur. Naturally it is a different matter if outside capital comes in for the first time. We are anxious to encourage that.
There are one or two cases of the type of firms to which Deputy Cosgrave has referred, of wholly established Irish firms who have engaged the interest of outside investors. I know of one case of a particular industry located in a town in a rural area. The proceedings have gone through a fairly complete stage. I am satisfied in that case that this will be for the benefit of the industry itself and for those already employed in it, and will give, I believe, further scope for employment in the industry and in the area. No cases have come to my notice in which there would be any detrimental effect on old-established industries where such new capital investment from outside sources is involved. Again, I can assure Deputies that in all these cases I shall keep a close eye to ensure nothing is done to the detriment of our investments generally.
I had not intended speaking on this measure tonight, but while I was sitting here listening to the Minister on the Bill, I thought of what happened in the past. My late father was a member of this House for over 30 years—I think it was nearer to 40 years. He was a member of the House when Fianna Fáil took office in 1932. One of the first actions of Fianna Fáil, when they took over, was to introduce the Control of Manufactures Act, which we are now repealing. I recall very strongly indeed the numerous occasions upon which my father spoke about this because he knew the effect of it in his constituency, which is now my constituency. The effect of that Act was that Gallahers tobacco factory, East Wall Road, was closed down within three months of the coming into operation of the first Control of Manufactures Act and 400 people were thrown out of employment. That fine factory premises remained derelict for donkey's years until Fry Cadbury took them over.
I rejoice at a Fianna Fáil Minister coming into Dáil Éireann and introducing a measure such as this, to repeal this first measure of theirs which they brought in during the days of the hairshirt economy when we were supposed to drink light beer and milk as a national beverage. Fianna Fáil are now learning sense. They have learned it the hard way and at the cost of much hardship for the plain people of Ireland. It is a grand thing to see a reasonable person like the present Minister for Industry and Commerce coming in here and introducing this measure calculated to promote employment opportunities for our people and to facilitate the introduction of capital from abroad.
I rejoice that that day has come and that the days of chauvinistic national economics—thank God, the British market is gone, that every industry be controlled only by sea-green incorruptible Gaels—have gone rapidly. Fianna Fáil have learned sense and we on this side of the House rejoice in that development.
I should like to direct on this occasion the personal attention of the Minister to one matter which I consider to be of very great importance. I welcome any measure which is likely to give greater encouragement to industrialists and manufacturers to expand for the export market, and for the home market by providing additional employment in industry. Industry contributes so generously to our pool of national employment that it is necessary that any progressive Government should always bear in mind the necessity of keeping under constant review legislation dealing with industrial activities in general, as this Bill does.
The attention of the Minister must already have been directed to a number of industries which in recent years have been established in this country. They got substantial subsidies and financial accommodation of every possible sort. We have old and long-established industries, which were commenced in this country without one penny of State aid. In years past there was sufficient enterprise, and sufficient people were interested in Irish industry, and various groups of industrialists came together who, because of their faith in Irish industry, were prepared to put their own money into it.
The Deputy's speech sounds like a Second Reading speech. We are on the Fifth Stage. The Deputy is entitled to advert to what is in the Bill but nothing else.
I do not want to make a speech. I just want to direct the attention of the Minister to the fact that he must always bear in mind those industries set up by private enterprise without any specific State aid whatever. Those industries may have difficulty in competing with industries recently established with practically 100 per cent State aid. I should like to ask the Minister to keep in mind the woollen and worsted industry, particularly one in my constituency which was established without one single penny of State aid. Great credit is due to the directors and everybody concerned, but they now find they may be in danger by the fact that they may have to compete with recently established industries set up with practically 100 per cent State aid. I ask the Minister is it fair to have an industry with 100 per cent State aid competing with an old-established industry successfully set up without one penny piece from the State?
Those are industries which the Minister, I am sure, will always keep close to heart. They are industries in which we have belief and which we are always anxious to help and safeguard. They are the woollen and worsted industries, particularly those giving good employment. They have certainly given good results in the high quality of their products on the export market. I have been approached by a number of industrialists who fear for their future because of the competition by the new industries set up with practically 100 per cent State aid. I ask the Minister to keep under constant review the circumstances of the industries that have been a credit to this country, a credit to their skilled workers, a credit to the management and a credit to the enterprising people who in the early days had such faith in Irish industry as to put their money into it, asking money from nobody. These people are worthy of the constant thought and consideration of any Government in office.
I want to assure Deputy Flanagan that there are few industries that have engaged the attention of my Department more than the woollen and worsted industry, and also that the woollen and worsted industry still enjoys the full measure of protection afforded by quota restriction. Furthermore, it is not the practice of An Foras Tionscal to give grants for the establishment of woollen and worsted industries to compete with the old-established Irish industries. If grants of this nature were ever given, they were given on the basis of the output of the industry concerned.
With regard to Deputy Byrne, the only reason I reply to him is lest my silence implies that I agreed with the suggestion he made, that the control of manufactures legislation was wrong at the time it was passed. I believe it was right and necessary in the context of the times. Politics and economics are matters of evolution. We found ourselves in the early Thirties with little or no industrial enterprise catering for the home market, much less the export markets, and it was necessary then to introduce the kind of protection, not only tariff protection but investment protection, that we had over all those years.
I might remind Deputy Byrne that his Party were in power for two periods of three years during which they could have repealed this legislation, if they so desired. It is obvious that the Government of the day recognised that the time was not yet opportune for the repeal of this type of legislation. The time is now opportune and I am glad to see his Party recognise this.
I may say in reference to Gallahers that no matter what caused Gallahers to close down their factory, not one cigarette less was smoked in the 26 Counties than would have been smoked if they had continued in operation.
Three hundred people were thrown out of work.
If there were people who lost employment in that particular factory, employment was obtained in the other factories established within the law. I believe that the closing of that particular factory, no matter for what reason, did not in the long run make one whit of difference to the economy or employment content during these years.
It caused a lot of hardship.