Tairgim:
Go ndeonófar suim nach mó ná £4,544,000 chun slánaithe na suime is gá chun íoctha an mhuirir a thiocfaidh chun bheith iníoctha i rith na bliana dar críoch an 31ú lá de Mhárta, 1966, le haghaidh Tuarastail agus Costais Oifig an Aire Tionscail agus Tráchtála, lena n-áirítear Seirbhísí áirithe atá faoi riaradh na hOifige sin, agus chun Ildeontais-i-gCabhair a íoc.
Tá breis de £465,680 sa Mheastachán don bhliain reatha thar an méid a deonadh do'n bhliain 1964-65.
Tháinig méadú mór sa ráta forbartha tionscalach i rith na bliana 1964. Méadaíodh ar an gcur amach le suas le 10 faoin gcéad chun árdchéim nua do bhaint amach. In a theannta sin meadaíodh ar líon na bhfostaithe ins na tionscail dhéantúsaíochta go dtí174,000 nó 5,600 níos mó ná an bhliain roimhe. I rith na bliana 1964, freisin, tosnaíodh ar thairgeadh earraí i 32 ionad idir mhonareain nua agus sean-mhonarcain ab éigean a leathnú toisc éileamh níos mó ar a gcuid earraí. Meastar gur fiú suas le £10 milliún iomlán an capiteal atá ins na tionscail seo agus go méadófar ó líon fostaíochta de 1,900 i dtúis báire go dtí 4,800 i ndeire báire. Lean an t-Udarás Forbartha Tionscail go dlúth le tionsclóirí eachtrannacha a mhealladh chun tionscail a bhunú sa tír seo agus cuireadh tuille airgid ar fáil dóibh ionus ná beadh bac orthu beart níos treise a dhéanamh feasta.
Shrois ár geuid onnmhairí figiúir buaice de £223 milliún i 1964. In a choinnibh seo, méadaíodh ar ár allmhairí go dtí £347 milliún. Ní misde a choimeád i gcuimhne go laghadfar go mór ar an "mbreis allmhaireachta" seo nuair a bainfear líon na dtuillteanas neamh-fheicse dhe. Ní misde cuimhneamh freisin go bhfuil ar na h-allmhairí seo innealra déantúsaíochta agus talmhaíochta a sholáthar a chuirfidh le líon ár bhfostaíochta amach anso agus a bhainfidh go maith de líon na n-earraí teaghlaigh atá á gceannach againn fé láthair ó thíortha iasachta.
Taispeánann réamh-fhigiúirí chéad ceathrún na bliana seo go raibh líon ár n-onnmhairí níos lua ná mar a bhí sa tréimhse chéanna anuraidh. Is deallrathach, mar sin féin, gur lua go mór an chur isteach a dhein breis-cháin Allmhaireach na Breataine ar ár n-onnmhairí tionscalacha ná mar a measadh i dtús réime. Níl dabht ar bith ach go bhfuil moladh mór tuillte ag ár n-onnmhaireoirí as an tslí in ar fhreagair siad an dubhshlán seo. Deinim cogháirdeachas leo as a fheabhas is d'éirigh leo a ngreim do choiméad ar a gcuid margaí sa Bhreatain agus margaí nua do sholáthair dóibh féin. Ba léir don Rialtas nár mhisde cúnamh a thabhairt d'ár n-onnmhaireoirí ualach an bhreis-cháin d'iompar. D'aithnigh an Rialtas an dochar mór a dhéanfaí d'fhorbairt eacnamaíochta na tíre dá gcuirfí isteach ar onnmhairí tionscalach ag an am seo agus an dul chun chinn atá déanta cheana féin ag ár dtionscaileoirí freastal ar na beartanna is gá dhóibh a chur i gcrích chun dubhshlán réime na saor-thrádála do shárú.
Spreag an bhreis-cháin Breataineach suim an phobail agus na ndéantúsóirí sa scéim chun an mharga sa bhaile le haghaidh earraí Gaelacha do leathnú. Tá mé lántsásta go bhfuil an pobal agus na déantúsóirí taobh thiar den scéim anois agus go raghfaidh an scéim i bhfeidhm ar an dá aicme toisc go n-oibreoidh sé chun tairbhe an dá thaobh nuair a tuigtear gur fiú earraí Gaelacha a cheannach ní toisc go bhfuil siad Gaelach amháin ach go bhfuil siad ionchurtha maille le praghas, fiúntas agus rogha lena macsamhail ó áird ar bith eile.
Is soiléir gur rí-thábhachtach do thionscail na h-Éireann agus chúrsaí eacnamaíochta na tíre go coitianta an chéim ar aghaidh a tógadh i rith na bliana seo caite. Ní thig le duine ar bith gan an chaoi inar ghlac ár dtionscalóirí leis na h-áiseanna a cuireadh ar fáil dóibh chun bainistíocht d'ath-riaradh, oibrí do chur in aithne do mhodhanna teichniúla nua agus atheagrú geinearálta do chur i bhfeidhm, d'aithint agus do mholadh.
Measaim go bhfuil gach comhartha ann gur maith an bhail a bheidh ar chúrsaí eacnamaíochta na tíre amach anso agus tá súil agam go leanfar feasta leis an dul chun cinn a deineadh i rith na bliana atá thart.
In the Book of Estimates, the net Estimate of £7,544,000 for the year 1965-66 compares with a sum of £7,078,320 granted in 1964-65, including token Supplementary Estimates for £20, and shows a net increase of £465,680. On 11th February, 1965, too late for inclusion in the Book of Estimates, an additional token sum of £10 was granted by way of a further Supplementary Estimate, bringing the total amount granted in 1964-65 to £7,078,330. The actual position is, therefore, that the Estimate of £7,544,000 for 1965-66 exceeds by £465,670 the total sum of £7,078,330 granted in 1964-65.
The principal increases arising in the financial year 1965-66 result from an increase in the Grant-in-Aid to the Institute for Industrial Research and Standards of £194,000, an increase of £120,000 in the provision for Departmental salaries and wages, an increase of £57,598 in the Grant-in-Aid to the Industrial Development Authority, an increase of £16,500 for An Cheard Comhairle and net increases of £22,000 and £15,000 to the Irish National Productivity Committee and Coras Tráchtála respectively after taking Supplementary Estimates of £8,000 and £60,000 in February last into account. New services—the Buy Irish Campaign and the National Building Advisory Council—account for £44,990 and £25,000 respectively. Minor increases in other subheads amount to £8,810, bringing the total increases in expenditure to £571,898, to which must be added a decrease of £2,287 in Appropriations-in-Aid, giving a total of £574,185. When allowance is made for the token Supplementary Estimate £10 taken in February 1965, expenditure under the subheads which I have indicated, arising in the financial year 1965-66, will exceed expenditure under these subheads in the present financial year by £574,175.
There will be decreases in expenditure under a number of other subheads in the year 1965-66. There will, for instance, be a reduction of £10,000 in the provision for laboratory equipment for the Institute for Industrial Research and Standards, while the provision which will require to be made for the New York World's Fair will be down by £58,000. Decreases in other subheads will amount to £40,505, bringing the aggregate of the decreases to £108,505. The net increase in the Estimate for 1965-66 compared with the year 1964-65 is, therefore, £465,670.
The year 1964 was characterised by an impressive expansion in industrial output. The average of the provisional indices of volume of production for the year (to base 1953=100) was 167.6 compared with a corresponding average in 1963 of 152.6. This is equivalent to an increase of almost 10 per cent in the volume of industrial production, and it represents a new record in the level of industrial output.
As was expected, the notable increase in industrial output has been accompanied by a considerable rise in employment in manufacturing industries. The average number of workers employed in the year rose to an estimated level of 174,100 which represents an increase of no fewer than 5,600 over the preceding year.
The pace of industrial development continues to accelerate, and this is evidenced by the substantial number of important new industrial undertakings which commenced operations during the year 1964. In that year no fewer than 32 new factories or extensions to existing industries went into production. The success achieved by the Industrial Development Authority in attracting new industry from abroad is reflected in the fact that 25 of these new industries were started with external participation. The total capital investment represented by the 32 new industrial units is estimated to be of the order of £10 million.
The employment, which will be in the region of 1,900 in the initial stages, is expected to develop to the point where 4,800 additional jobs will have been created. These new industries cover a wide variety of products and processes. The range of end-products will include aluminium anodising, plastics, asbestos cement pressure pipes, refractory lining materials, filter tobacco process machinery, adding machines, industrial thermometers and recorders, electric food mixers, pharmaceutical raw materials and hypodermic syringes and needles. The promotional campaign of the Industrial Development Authority is being actively carried on in the USA, in Great Britain, Germany, France, Italy, Austria, Denmark, Belgium, Netherlands and Switzerland.
Additional financial resources have been provided for the Authority to enable its promotional campaign to be further intensified, and, as Deputies are probably aware, the Authority has recently opened an office in Germany—at Cologne—which is the first office to be established by it in Europe. It has, of course, an office in New York. The Authority has two full time representatives in the USA and three full time representatives in Europe.
An Foras Tionscal approved grants during the year ending on 31st March, 1965, amounting to £2,040,200 for industrial projects located in the undeveloped areas. This brings the total provision for these grants to £8,892,960, of which grants totalling £5,614,590 were paid up to the 31st March, 1965. The total capital investment involved in projects which have been approved amounts now to almost £23 million and it is expected that ultimately employment will be provided for 12,600 persons.
In all, 144 industrial projects have now been approved for the undeveloped areas. Of this number 121 are now in production and the remaining 23 projects are in varying stages of development. About half of the projects which have been approved were promoted entirely by Irish interests, the majority of the other projects were promoted by foreign industrialists, while in a number of instances industries were sponsored by a combination of Irish and foreign interests. It is worthy of note that a substantial number of these industrial projects will find an outlet for their production on external markets.
The grants scheme for industries outside the undeveloped areas continues to develop satisfactorily, and during the year ended 31st March, 1965, An Foras Tionscal approved grants for new industries amounting to £2,072,799. This brings the aggregate of grants approved under the scheme to £8,018,592, of which amount rather more than half had been paid at the end of March last. The total capital investment in the approved projects amounts to over £33 million, and it is expected that employment will eventually be provided for 17,800 persons.
The new factories will send most of the goods produced to foreign markets. More than 60 industrial projects assisted by An Foras Tionscal are in production outside the undeveloped areas. There are 28 other projects for which grants have been approved and which are advancing towards the stage at which production will commence. A majority of the projects approved have been sponsored by foreign interests, though a considerable number have been promoted by Irish groups.
Exports in the year 1964 reached a record figure of £223 million—an increase of £27 million compared with the year 1963. Imports also reached a new level of £347 million, a figure which exceeds by £41 million the value of imports for the year 1963. The import excess arising from visible transactions will, of course, be offset to a very substantial extent by invisible earnings, and it must be remembered also that a considerable proportion of our imports consist of industrial and agricultural plant and machinery which will give productive employment and remove the necessity for the importation of considerable quantities of consumer goods which are imported at the present time.
The detailed trade figures issued by the Central Statistics Office show that virtually all categories contributed to the increase in exports in 1964. Exports of live animals brought in £67 million, an increase of £14 million; food, drink and tobacco brought in £73 million, an increase of £1 million; exports of manufactured goods (excluding food, drink and fuel) increased by 32 per cent from £41 million to £54 million accounting for almost one-quarter of total exports in the year.
The preliminary returns for the first quarter of 1965 show that total exports were £5.6 million below the level of exports in the corresponding quarter of 1964. In the absence of a detailed breakdown of the quarter's export figures it is not possible to say how particular categories of exports fared. It would appear, however, from provisional figures that industrial exports generally, while showing some improvement on the figure for the corresponding quarter last year, have been affected by the British import surcharge.
It will be unnecessary to remind Deputies that our growing export trade with Great Britain received what at first sight appeared to be a major setback towards the end of last October when the British Government, introduced a temporary charge of 15 per cent ad valorem on imports of manufactured goods into Britain. Our contractual right of entry free of duty to the British market was thus set aside, and Irish exporters were immediately confronted with a situation of unprecedented difficulty.
The reaction of Irish exporters to this challenge was quite remarkable, and I think that they are to be congratulated on the success of their efforts to maintain their export trade to Britain and to develop new markets, the potentialities of which had to be investigated at once. Irish industry has managed to avoid the worst consequences of this threat to production and exports, and it is a considerable tribute to our industrialists that they have adapted themselves so successfully to this new and difficult situation without any major breakdown of production.
Recognising the necessity for rapid intervention the Government, for their part, introduced immediately a scheme designed to assist exporters affected by the British import levy. Under the scheme, market development grants are payable to exporters with the object of encouraging a continuance of our export trade at the highest practicable level. The aggregate of market development grants paid up to 30th April, 1965 is £254,750. It is clearly necessary to avoid a reversal of the trend of expansion of exports which has been such an encouraging feature of our economy for some years and which might upset to a dangerous extent the projections on which the Second Programme for Economic Expansion is based. If there were to be an inhibition of our industrial exports at the present juncture, it would be a most unfortunate development, since it would come at a time when industry's efforts to adapt itself to free trading conditions are fairly well advanced and programmes for further export development are beginning to take shape. Furthermore, a number of new firms are now reaching a stage at which their export trade would be capable of making a significant contribution to the export drive. The decision of the vast majority of exporters to maintain, as far as possible, their position in the British market is a wise one, since it is clear that it would be difficult and expensive for exporters to retrieve a major loss of position in the British market. The fact that the British import charge will be of temporary duration, only, is a relevant factor in this connection.
As Deputies will recall, the British Government announced some time ago that there would be a reduction in the amount of the levy from 15 per cent to 10 per cent, effective from the 27th April, 1965. While this reduction will be of limited value to Irish exporters, nevertheless, it is to be welcomed as confirmation of the expressed intention of the British Government to terminate the import levy at the earliest practicable date.
The Buy Irish Campaign, which was a spontaneous reaction to the British import levy, has got off to a most encouraging start. Since it is basically a public relations exercise, the results of such a campaign are naturally difficult to measure, but I am informed that Irish industry has experienced a perceptibly increased demand for its products and that the probability is that this is attributable in large measure to the effect of the Buy Irish Campaign. There is no doubt but that the campaign has the support of the vast majority of business people in this country, and the public has given ample demonstration of its goodwill. A number of distributors have already established special promotions in support of the campaign, and further developments of a similar kind may be expected. If the campaign is to be as successful as one would wish, it is essential that traders should co-operate in a way which will ensure that goods of Irish manufacture are consistently brought to the notice of the public at the point of sale. The Buy Irish Committee has taken into account increased consumer sophistication in the matter of quality, price and value for money generally, and it is fully aware of the need to present to the public products which will make an effective appeal not merely because they are of Irish manufacture but because they are acceptable from the standpoint of price, quality and variety.
Apart from the special value which a Buy Irish Campaign is capable of having in the present situation in which our export trade has been impeded by the British import charge, a Buy Irish Campaign in the long-term can do much to increase the demand for goods of Irish manufacture and to promote a greater feeling of solidarity between the purchasing public and Irish industry. There is an identity of interest in this matter between the different sections of the community, and, in my opinion, a Buy Irish Campaign conducted on a long-term basis is capable of creating new opportunities for employment in industry, increasing the volume of industrial output and rendering unnecessary the importation of products of various kinds which can be manufactured at home. I am confident that the community at large will continue to extend to this campaign the active practical support which it undoubtedly deserves.
The Grant-in-Aid of Córas Tráchtála shows an increase of £15,000 over the provision made in 1964-65. The Board's activities in the field of export promotion, overseas market development and design development are being extended in accordance with the Government's plans for economic expansion. Since its establishment as a Statutory Board in September, 1959, Córas Tráchtála has received grants-in-aid totalling over £1½ million. The grant-in-aid for 1965-66 will bring the total to over £2 million.
The work of design development is becoming an increasingly important part of the activities of Córas Tráchtála. The Board are establishing a number of design workshops in Kilkenny, and there are already in operation workshops for textile printing, silverware, pottery, poplin weaving, candlemaking and wool weaving. The need for an improvement in the design of industrial products has been obvious for a considerable time, and I am hopeful that any ground lost will now be recovered.
I hope that an Ireland House will soon be opened in London in premises which have been secured in New Bond Street. This will make it possible to bring together under one roof a number of Irish State agencies which, until now, have been located in different parts of London. An Ireland House should help to project a better image of Ireland in the British capital and facilitate the promotion of our export trade with our most important customer.
The Committee on Industrial Organisation which was set up by the Government in 1961 has completed its task of making a critical appraisal of the measures required to secure a re-organisation of Irish industry to enable it to meet conditions of freer trade. Survey teams appointed by the Committee carried out detailed surveys of 26 industries in which some 87,000 persons are employed. The Report of each team, accompanied by a covering report by the Committee giving its views on the survey, has been published in 25 cases; the 26th report will be published as soon as possible. In addition to these survey reports, five interim reports which are of general application to industry have been published by the CIO. The Committee has prepared also a final report reviewing, generally, the entire programme of work for which it was responsible. This report will also be published shortly.
There can be no doubt that this Committee has rendered an extremely valuable service to the nation for which the Government are very grateful. So far as I am aware, similar industrial studies in such depth have not been carried out in any other country, and it is a source of gratification to learn that the work of our Committee has been very favourably received and commented on in responsible quarters abroad.
The fact that the Committee on Industrial Organisation has completed its appointed task does not mean that there can be any slackening in the efforts which industry is called upon to make to adapt itself in the shortest possible time for freer trading conditions. As mentioned on other occasions, a new branch was established in my Department nearly three years ago for the special purpose of ensuring that the recommendations in relation to industrial efficiency made by the Committee on Industrial Organisation are implemented. In this matter, the Industrial Reorganisation Branch of my Department works in the closest possible contact with the different industrial sectors, and the necessity for bringing about the changes in the structure and organisation of industry advocated by the Committee on Industrial Organisation is constantly emphasised.
I am now able to report that no fewer than 21 Adaptation Councils have been set up by industry. The establishment of these councils was recommended by the Committee on Industrial Organisation as the most effective medium through which its recommendations might be implemented. Some of these Adaptation Councils have already made remarkable strides in the short time since their formation, and they have given striking evidence of what can be achieved by industry in the realm of reorganisation and readaptation by co-operative effort. There are, nevertheless, a limited number of industrial sectors which have not yet fully realised the advantages capable of being derived from full and effective participation in the work of the Adaptation Councils. I would urge these particular industries to adopt a more positive and farsighted policy. Unless they participate in the general movement towards re-organisation and readaptation, they may well find that they will be quite unable to cope with the difficulties and problems which will be presented in conditions of freer trade.
In accordance with a recommendation made by the Committee on Industrial Organisation, arrangements have been made for the creation of standing trade union advisory bodies which will be available for consultation by the Adaptation Councils in all matters affecting the interests of workers. The establishment of these advisory bodies is now well under way, and there are at the present time more than 20 of these bodies in existence.
I am glad to be able to report that our industries are availing themselves of the special grants and loans which are available to facilitate the attainment of higher levels of efficiency through a process of reorganisation and adaptation. Up to the end of March, 1965, over 450 applications for these special grants and loans were received, and the proposed capital expenditure involved amounted, in the aggregate, to nearly £39 million. The total amount of grants approved up to the present is in the region of £5 million, of which nearly £1,500,000 has already been paid out to industry.
While the particulars which I have given in relation to readaptation grants are impressive, it would be a mistaken view to regard industrial readaptation solely in terms of improved plant, equipment and premises. The importance of modern buildings and equipment is self-evident, but there is a danger that sufficient emphasis may not be placed on attitudes of mind.
No matter what assistance, advice or persuasion may be forthcoming from my Department or from other agencies concerned with improved efficiency or higher productivity, in the last analysis what really counts is the readiness of individual firms within industry to get down, both at management and staff level, to the practical problems of readaptation in a realistic, vigorous and intelligent way. I have every hope that the increased dynamism of our manufacturers, so vividly reflected in the export figures I have given you, will likewise be reflected in their progress with the all-important work of adaptation.
The Government realise that the achievement of the targets set out in the Second Programme for Economic Expansion and also the movement towards freer trade are not matters divorced from human problems. An increase in skilled workers and the availability of adequate numbers of persons with the requisite skills, are as essential to the achievement of the targets as are the adaptation and modernisation of industry. Adaptation to conditions of freer trade will be accompanied by changes in employment opportunities. Mechanisation or automation may create redundancies in particular industries, though the ultimate expansion of those industries, according as efficiency improves, may eventually result in increased employment in the industries. The Government feels it necessary, at this stage, to indicate the steps it is taking and will take to deal with the human problems involved, so that there need be no apprehension in the minds of workers about what the future holds for them.
It is proposed to set up a manpower forecasting agency whose function it will be to predict, over a period ahead, the likely requirements for various classes of workers, particularly skilled and semi-skilled and the likely available opportunities under these heads in the ordinary course. It will be part of the task of this agency to estimate the number of persons in various categories who are likely to become redundant as a result of the movement towards freer trade and the preparations being made to increase the efficiency of industry towards that end. If, as is to be assumed, the forecast reveals shortages in particular skills, it will be the task of the Government to ensure that adequate numbers of persons are trained or re-trained so as to meet estimated requirements. For this purpose, the Government is preparing to introduce legislation to provide for the setting up of a training body.
It is the aim of the Government to create a situation in which the worker who becomes redundant in the circumstances envisaged above, will have his suitability for training or re-training assessed and will be provided with such training or re-training as he requires. Financial provision will need to be made for the workers and a system of redundancy or stand-off payment, covering the period of training or re-training, is being worked out. The Government's intention is that a worker need have no apprehension that if his employment has to be terminated because of the adaptation of the industry or because of the incidence of freer trade, he will be left without reasonable resources or left without an opportunity of being re-trained for absorption into another industry.
The task of placing re-trained persons in industry will involve an extension of the functions of the employment exchanges and the re-orientation of their activities. It may be taken, however, that a situation will exist in which a worker who becomes redundant will be eligible for redundancy payment and for re-training if he is found to have the necessary aptitude. The purpose of this re-training will be to equip the worker with a skill for which there is a demand and thereby ensure, as far as is humanly possible, that he will be in a position to avail of suitable employment opportunities.
It will be appreciated that the implementation of the Government's proposals which I have just outlined will involve a considerable amount of organisation and planning. The overall responsibility will rest with the Minister for Industry and Commerce and it is envisaged that he will have the assistance of an advisory body constituted on a broad representative basis.
In the field of industrial relations generally, one of the most important developments during 1964 was the operation of the national wage agreement which provided a generally accepted basis for wage settlements and helped to obviate the haphazard negotiation of wage claims, which tended in the past to disrupt employer-labour relations. There was, unfortunately, a major stoppage of work in one industry in which both employers and workers suffered considerable loss before a settlement was reached. Clearly, we must continue our efforts to improve the machinery of industrial relations so as to ensure that the production losses and social suffering arising from prolonged strikes should be obviated as far as possible. I have recently taken the initiative in the formulation of proposals for the overhaul and modernisation, where necessary, of the industrial relations machinery established under the Industrial Relations Act of 1946. The organisations representative of employers and workers are considering my proposals which were outlined for them at meetings held a short while ago.
An Cheard-Chomhairle, the National Apprenticeship Board, since its establishment in 1960 has made substantial progress and has introduced statutory apprenticeship schemes in the furniture trades, the engineering and metal trades, the electrical trade and the trade of motor mechanic. It intends to bring similar schemes, for the printing and building industries, into operation during the coming year.
The Board is very conscious of the need to ensure that training will be geared to the needs of the future. The Board's aim in the case of the skilled trades is to ensure that a sufficient number of suitable boys are recruited and that their practical and theoretical training during apprenticeship is such as to prepare them adequately for their future roles as skilled workers.
The intake of apprentices is, of course, governed to a great extent by the availability of training facilities on the one hand and the prospect of job opportunities on the other.
In many of the skilled trades the Board has already prescribed training rules to ensure that the apprentices will be given a comprehensive practical training on the shop floor, and it has appointed technical staff to ensure, by frequent visits to factories, that these rules are implemented. Modern employers are increasingly conscious of the importance of training as a factor in increased production and of the fact that training expenditure is a worthwhile investment. On-the-job training may of course pose difficulties in that, apart from a possible conflict between the firm's production function and the training function, the nature of the work or the machinery in individual concerns may militate against the apprentices obtaining a comprehensive practical training. Technical school instruction is essential not as a substitute for shop floor training but as a necessary complement. On-the-job training combined with the technical school instruction in practical, theoretical and social disciplines is designed to increase the all round efficiency and understanding of the apprentices.
There has been no change in our aim to secure membership of the European Economic Community. No major developments have taken place during the past year, but our desire to resume negotiations, when circumstances permit, leading to membership of the EEC is well known. In the meantime, we are maintaining contact with the Community at various levels, and we have continually in mind the possibility of improving our trade relationship with the member countries of the EEC.
The Kennedy Round of trade negotiations provided a suitable opportunity for the re-opening last year of our application for membership of the General Agreement on Tariffs and Trade. It is possible that the examination of our application for membership will commence within the next few months. Our accession to the General Agreement on Tariffs and Trade and our participation in the Kennedy Round, if achieved, will involve the acceptance of commitments affecting tariffs and trade arrangements. Corresponding benefits would accrue to industry and agriculture from our Association with GATT.
Discussions are proceeding with the British Government with the object of improving the permanent trading arrangements between both countries. I am not in a position at the present time, however, to indicate the stage which has been reached in these discussions or to express an opinion concerning the possible outcome.
While emphasis is now principally on multilateral trade agreements, nevertheless, we still have a number of bilateral trade agreements with countries such as France, Germany and Finland. These agreements are reviewed from time to time, and advantage is taken of the possibilities represented by them to develop our export trade with these countries at increasingly higher levels.
Two general 10 per cent reductions have been made in the level of industrial tariffs, generally, and similar enlargements have been made in the quotas which apply to particular industrial products. A third general reduction of tariffs had been visualised for the 1st January, 1965, but, having regard to the difficulties created for Irish industry by the British import charge, the Government decided in the circumstances to defer for the time being the application of the third round of tariff reductions. This decision does not, of course, imply any change in Government policy, and it certainly does not provide any grounds for a relaxation by industry of the efforts necessary to proceed with adaptation and re-organisations schemes designed to achieve the highest possible level of efficiency and competitiveness in the shortest possible time.
The technical assistance grant scheme continues to provide a valuable service for industry. While many firms have availed themselves of the scheme, a surprisingly large number of firms have not yet done so. Very encouraging reports have been received from those firms which have utilised the grant scheme whether for consultancy work, training courses or study visits abroad. A 50 per cent grant of the cost is, of course, a real inducement to firms to improve their productive efficiency. Grants are also made to the Irish National Productivity Committee and to the Irish Management Institute, for the purpose of assisting existing firms desirous of improving their efficiency.
With the aim of developing to the maximum extent its potential for assisting Irish industry, the Institute for Industrial Research and Standards continues to expand its operations over a wide field. Existing facilities are being improved and enlarged, and preparations for the provision of a whole range of new facilities are at an advanced stage. Separate Departments are being established for metallurgy and engineering research, while new activities are also being planned in the fields of bio-technology, analogue computers, metrology and the industrial use of radio-active isotopes. Developments in relation to chemical engineering, electronics and printing are also proposed. Improvements have been made by the Institute in its arrangements for the provision of Fellowships and industrial scholarships which are aimed at promoting a greater use of science and technology in industry in this country.
This expansion in the Institute's operations is seriously taxing its existing accommodation. The Institute already has plans in hand for the provision of new buildings to house the additional staff and equipment being provided.
During the past 12 months, there has been considerable activity in exploration for mineral deposits in many parts of the country. Many external companies and a number of Irish firms are anxious to carry out a thorough examination of our potential mineral resources, and these firms have been assisted by providing such facilities as prospecting licences and State mining permissions.
Development of the deposits of lead, zinc and silver discovered at Tynagh, County Galway continued during the year and I am informed that it is hoped that production will commence towards the end of the present year.
Further exploration is being undertaken at Silvermines, County Tipperary with a view to providing fuller information in regard to the deposits of lead, zinc and silver in that locality. There is now an appreciable production of barytes which finds a market in the USA.
The reports on the drilling programmes carried out in the Leinster and Connaught coalfields which were published towards the middle of last year indicate that reserves of coal in the Leinster coalfield are of the order of 7,000,000 tons of anthracite coal. It is estimated that there are about 18,000,000 tons of semi-bituminous coal in the Connaught coalfield. A considerable portion of the Connaught reserves and some of the Leinster reserves may not, however, be capable of economic development because of the thinness of the coal seams or the high ash content of the coal.
While the emphasis hitherto has been on raising productivity in agriculture and industry, it is also necessary to increase efficiency in the services sector which accounts for some 40 per cent of national income and of total employment in the country. The distributive trades form a very important part of the services sector and have a vital role to play in the development of our economy. It is essential, therefore, that the distributive trades should continue to strive to achieve the highest level of efficiency and productivity.
The Efficiency of Distribution Unit which was set up specially in my Department last year to ensure that the distributive sector makes a maximum contribution towards the aims of the Second programme has held a number of discussions with the Federation of Trade Associations with a view to arriving at the most appropriate measures designed to improve efficiency in distribution. The Unit maintains close liaison with the Distributive Trades Productivity Committee which was formed during the year under the auspices of the Irish National Productivity Committee, with joint management-labour representation. This committee has now prepared its first programme which provides for the setting up of educational, advisory, information and research services for the assistance of the distributive trades. The committee recently held seminars in a number of centres throughout the country for the purpose of spotlighting the challenges facing the distributive trades to-day and to consider what can be done to meet the changing needs and requirements of this decade.
Min Fhéir (1959) Teoranta, the State-sponsored company which was set up to produce grassmeal from bog-land in County Mayo, had successfully completed its first year of commercial production. There was an excellent growth of grass and the grassmeal produced was, I understand, of a very high quality.
The construction of the nitrogenous fertiliser factory at Arklow is substantially completed and commissioning of the plant is under way. As announced in the press recently, the first consignment of sulphuric acid made at Arklow is being supplied to Holland. It is expected that full production will be achieved by autumn, 1965.
The factory will be operated at maximum capacity to supply the requirements of the home market for sulphate of ammonia and calcium ammonium nitrate and, if the need should arise to dispose of any surplus production arising in the early stages, satisfactory arrangements have been made for placing any initial surplus in export markets. The employment afforded will be in the region of 300, and since it is a basic chemical enterprise, the skilled labour content will be exceptionally high.
The final stage of the development plans of Irish Steel Holdings Ltd. is now being reached. All the civil engineering works have been completed, and now major plant installations have been brought into commission. Difficulties have, however, been experienced by the company in achieving full commercial production, and operational consultants have been engaged to suggest measures which might resolve these problems. There remain to be completed and brought into commercial operation the wire rod mill and sheet mill. The wire rod mill is scheduled for initial operation before the end of 1965. The sheet mill is in the final stages of installation, and commercial production will be undertaken when an increased supply of fresh water is provided under the Cobh water supply scheme.
The land connection estimated to cost £300,000 between Haulbowline Island and the mainland, will reduce the company's costs. It will also provide a useful facility to many of the company's customers and should encourage the establishment on the mainland of secondary industries requiring easy access to steel. Work on the connection commenced last October, and it is expected to be completed in the middle of 1966.
Price increases and price control have featured largely in the debates in this House and in public statements by the Taoiseach, my predecessor and other Government spokesmen during the past year. This House has, from time to time, been given accounts of the measures taken—measures which used to the full the powers under the Prices Act, 1958—to probe price increases which appeared to be excessive and to eliminate them where this was recommended. The Prices Section of my Department has kept the position under constant review and has taken the initiative when this was considered desirable, in the investigation of price increases. I am satisfied that the work of that Section, when coupled with that of the Fair Trade Commission and aided by the vigilance of the consumer public, has resulted in stabilising prices to a not inconsiderable degree.
I do not say that a greater measure of stabilisation is not possible and indeed I am looking forward to a continued improvement in the position in the future partly because of the factors I have already mentioned and partly because I anticipate that improved industrial relations must influence for good such factors as efficiency, output and unit cost and provide a cushion against the impact of other increases in production costs. I strongly adhere to the view that, times of emergency apart, statutory price control is not in any way an acceptable alternative to free and fair competition. It should be clearly understood, however, that I intend to use my powers under the Prices Act, 1958, to the full to secure fair prices within an economy based on free and fair competition at all levels.
During the past year, the Fair Trade Commission investigated complaints regarding the operation of Fair Trading Rules relating to entry into and trade in the sale and repair of motor vehicles. The investigation revealed that, in general, the Rules, which came into force in March, 1962, continue to operate satisfactorily. The Commission reviewed the Fair Trading Rules relating to electric light bulbs and dry batteries and the Orders governing building materials, cookers and ranges and found that the Rules and Orders appear to be operating satisfactorily. The Commission intend to review the operation of the rules relating to the distribution of coal.
An agreement with the petrol companies, under which they undertook to exercise restraint in relation to the supply of new retail petrol sites and the opening of company-owned stations, also came under review. The Commission reached the conclusion that these arrangements have operated reasonably successfully, and the petrol companies have agreed that they should be continued for the present.
The Commission completed a survey begun in the previous year of the intoxicating liquor trade in certain areas to ascertain the effects on competition of price recommendations by trade associations. The Commission are satisfied that no collective action was taken to enforce enhanced prices and that a reasonable element of competition exists. They are keeping the position under continuing review.
The achievements of the past year have been important for Irish industry and for the economy as a whole. Productive industry achieved a very satisfactory rate of growth during the year which augurs well for the ultimate attainment of the objectives of the Second Programme for Economic Expansion. Industrial adaptation gathered real impetus during the year, and it is now evident that industry, in general, has a sense of urgency in regard to the problems which are bound to confront it in conditions of freer trade. I think that it can be said that the move towards general redaptation on the part of large sectors of industry is now well underway. One cannot fail to be impressed by the extent to which industry continues to avail itself also of the facilities available for the reorganisation of management and the training of staff in modern methods and techniques. The services provided by the Irish Management Institute and by the National Productivity Committee have been extremely valuable in this connection.
The promotion of industrial development continues to make very satisfactory progress, and this is evidenced by the number of new factories which commenced production during the past year and the impressive employment potential which these factories represent. As already mentioned, many of these new factories will concentrate on exports rather than on the home market, and this is bound to be reflected in a major rise in export levels in the years which lie ahead. It may be expected, therefore, that the present trend for industrial exports to play an increasingly important role in our external economy will develop on an even more impressive scale than in the past. In this connection, it ought not to be overlooked that in the past year Irish exports reached an all-time record in spite of the difficulties which arose in relation to the British market. On the assumption that world trade continues to develop satisfactorily, I think that the outlook for the Irish economy is very favourable, and we can confidently hope that the major advances achieved during the past 12 months will be continued in the years that lie ahead.
