Dáil Éireann debate -
Wednesday, 24 Feb 1965

Vol. 214 No. 7

Control of Exports (Temporary Provisions) Act, 1956 (Continuance) Bill, 1965: Second and Subsequent Stages.

Minister for Industry and Commerce (Mr. J. Lynch)

I move that the Bill be now read a Second Time.

The purpose of this Bill is to extend, for a further period of three years, the Control of Exports (Temporary Provisions) Act, 1956 which was to expire on 31st March, 1959 but which was renewed for two further periods of three years each.

The Act empowers the Minister for Industry and Commerce to prohibit by Order the exportation of industrial goods save under a licence issued by him. Orders made under the Act have a life of 12 months and are required to be laid before each House of the Oireachtas as soon as may be after they are made, and if a resolution annulling any Order is passed by either House at any time during the currency of the Order, the Order is annulled accordingly. At present a number of goods are subject to export control under the Control of Exports Orders, 1964 which were made under the powers conferred under this Act.

I consider that the time has not yet come when the export controls may be dispensed with. Accordingly, it will be necessary to continue these powers for some further time, and to enact legislation to that end. The need is threefold:

(a) to conserve, for the benefit of the home industry, raw materials continuing or likely to continue in short supply. Examples of such commodities which are the subject of current orders are scrap metals, including iron, steel, aluminium, lead and zinc;

(b) to ensure that strategic materials are not exported from this country to Communist countries or that this country is not used as a base through which such materials may be sent to Communist countries from other countries, and

(c) to have immediately available a means of dealing with the situation in the event of an international emergency developing in which the country could be drained of essential materials before corrective legislation could be enacted by the Oireachtas.

For the reasons mentioned, I commend this Bill to the favourable consideration of the Dáil.

Mr. Dillon

In respect of the reasons given for the necessity for this Bill, some of them are clear to us as justifying the retantion of this power by the Minister. However, I wish to ask one question in connection with the first reason the Minister gave to justify the power of controlling exports in respect of raw materials which would normally be associated with periods of scarcity. What is the point of controlling exports of scrap metals? Are not scrap metals international trade passing freely in every direction? There is no world scarcity of scrap metal that I have heard of.

Secondly, I remember when I was Minister for Agriculture it came to my knowledge, I forget in regard to what detail of administration, that we were then prohibiting the export of timber in the round which I think very materially interferes with the economic operation of the national forests and for which I can see no justification at all, once the international scarcity of timber has disappeared. There is not any scarcity of international timber at present and it would appear that the national forests should be allowed to obtain whatever market they can find to get rid of the output from the forests. I should be glad if the Minister would say whether he considers that the world supply of scrap metal justifies this and, secondly, whether these powers are still being used to control the export of timber in the round.

Mr. Corish

Will the Minister tell us whether there have been any exceptions in recent times? The 1956 Act provides for exceptions to be made in respect of commodities over which the Minister may have control. Without disclosing any confidential information, perhaps he could tell us in respect of what commodities exceptions have been granted in the past 12 months or two years.

Mr. J. Lynch

The first point made is the best point on which I can mention the type of exceptions that have been made. Contrary to what Deputy Dillon suggests, scrap metal is in comparatively short supply throughout the world. In fact, I understand that most countries exert control on the export of scrap metal, the main purpose being to conserve whatever supplies there are within the country for the benefit of home fabrication of iron and steel manufacture. In some cases it would be unfair to the people who procure scrap metal to prevent them from exporting it. One exception was in the case of CIE when they had rails for export. They were able to command on the export market a very high price compared with the price the home steel mills could offer. In these circumstances, a certain percentage figure was decided upon and that percentage was high enough over the prevailing market prices.

Another exception is this. In shipbreaking a peculiar anomaly exists. While new ship building is a very competitive business, ships for shipbreaking can command very high prices. There is a shipbreaking industry within the country and they have to compete in the purchase of these old ships with shipyards throughout the world and it is regarded as only fair for the purpose of the industry, and particularly for the employment they offer, that they be permitted to export; otherwise it would not be economic for ship-breakers in Ireland to purchase ships and break them up and then be restricted to selling at home.

Timber in the round does not arise in this Bill. It arises under the control of timber exports which comes under the Agricultural and Fisheries Products (Regulations) Act, 1947. Again there is a shortage of a certain type of timber in the round. This is mainly timber suitable for the manufacture of veneers. We have one or two veneer manufacturers and unless a control were exercised, it would be difficult for these factories to procure raw materials at economic prices.

Mr. Corish

The Bill has nothing to do with the export of agricultural products? Can the Minister say whether or not tinned foods would be regarded as agricultural products.

Mr. J. Lynch

No; there is no restriction on the export of tinned foods.

Mr. Corish

No matter in what condition, tinned or otherwise?

Mr. J. Lynch

That is a rather wide question. There may be some commodities. I doubt if there are agricultural food commodities on which control for export may be required. They certainly do not arise under this Bill.

Mr. Corish

Let us suppose that the price of cattle became so high that people could not buy meat—this is only a supposition—would the Minister not consider, apropos the question he was asked today, restricting to some extent exports of tinned food which might be essential to the people?

Mr. J. Lynch

That would arise under the measure to which I referred, the Agricultural and Fisheries Products Act and also it would be possible in certain circumstances, such as those the Deputy referred to, to have emergency legislation.

Mr. Corish

It could not be done under this ?

Mr. J. Lynch

This applies, in the main, to industrial goods.

Question put and agreed to.

Agreed to take remaining Stages today.