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Dáil Éireann debate -
Thursday, 21 Oct 1965

Vol. 218 No. 2

Ceisteanna—Questions. Oral Answers. - Export of Cotton Manufactures to Britain.

104.

asked the Minister for Industry and Commerce if he will give full details of the proposals made by the British Government concerning the control of exports from Ireland to the United Kingdom of cotton manufactures and goods containing cotton; and if he will make a statement on the matter.

105.

asked the Minister for Industry and Commerce what representations have been made to the British Government to ensure that restrictions will not be imposed on the importation of cotton goods from Ireland; and if he will make a statement on the matter.

106.

(South Tipperary) asked the Minister for Industry and Commerce if he has any statement to make on the proposed restrictions by the British Board of Trade on Irish cotton exports to Britain; and if he will state (a) when the Irish Government received any official intimation of these proposals, (b) whether these decisions were taken unilaterally or whether they had been discussed within the context of Anglo-Irish trade talks, (c) if he is aware of the proposed method of application of these restrictions, and (d) the general Government attitude to these proposed measures in the light of the present Anglo-Irish trade discussions.

I propose, with your permission, a Leas-Cheann Comhairle, to take Questions Nos. 104, 105 and 106 together.

The British Government have advised the Irish Government of proposals for regulating the import into Britain from certain countries of cotton textiles for a period of five years from 1st January, 1966. The British Government propose to institute a series of global quotas applying to the import of cotton goods into Britain. In the recent discussions between Irish and British officials, the question of the treatment of exports of cotton goods from Ireland to Great Britain was a major subject of discussion and is to receive further consideration. There is nothing in the proposals at present under discussion in the trade negotiations which would justify a reduction in our cotton production. I would like to emphasise that our plans for the industry envisage its further expansion.

Can the Minister say if this proposal to restrict exports of cotton goods from this country was made independently of the recent trade talks and, if so, when? Further, is the Minister aware that British manufactured cloths with low cost material are being imported into this country and compete unfairly with Irish manufacturers who manufacture similar goods and commodities and will he direct the attention of the British Government to this fact in the negotiations, a fact which I believe should be used as a certain bargaining matter in the discussions?

An export control has existed since 1959. That was done with the concurrence of the people in the trade. About a year ago, I gather, it was indicated by the British they hoped to produce proposals which would take effect on 1st January, 1966. Therefore, this was well before the trade agreement negotiations. The actual proposals were formulated and an aide-memoire delivered at the beginning of September to this and several other countries. We are aware of everything concerned and the whole general situation is under discussion.

As I understand it, it is proposed that Portugal, Ireland and Japan are the three countries with which special arrangements are to be made. Is it proposed to limit cotton exports to a percentage of the existing figure, or is there an overall global figure to be fixed for Ireland as well as the other countries?

There is a global quota but there are to be separate discussions for the three named countries. These discussions would give rise to whatever arrangements would be enforced for the five years from 1st January next. They are not to be part of the global quota.

Has the Minister adverted to the fact that Irish manufacturers have found over the past 12 or 18 months difficulty in competing with low cost British cloths imported here, where the British suppliers have low cost raw materials available to them? That aspect of the matter should be drawn to the attention of the British Government in the course of these discussions.

I am dealing with that as a separate problem.

Is the Minister aware of the special circumstances of Irish manufacturers who during the past 18 months were asked to gear themselves up for export? Many of them have gone to trouble and expense installing new machinery and generally modernising their plant? Surely the Minister must bear in mind the special circumstances of such manufacturers who could be put out of business in the event of going on a quota basis?

There is no question of reducing their production.

It is limiting the expansion of it?

This deals with the amount that can be exported to Britain from this country.

The Minister is going to deal with the other question of low cost British exports here?

I am dealing with that administratively.

Can I take it from what the Minister said that no free trade agreement will be signed if Britain insists on restricting our cotton exports?

We already have agreed to a restriction since 1959 with the concurrence of the trade.

Is this not greater?

These are proposals put up for a separate arrangement for Irish exports of cotton goods outside any global quota put on to protect their own market.

Can the Minister give the House an assurance that in the event of the global quota being enforced it will not affect present employment in the industry?

We do not envisage any reduction. I understand that adaptation has put the industry here in a much healthier position than a few years ago.

Can the Minister assure us that, in the event of a free trade agreement with Britain, any quotas Britain may apply to us would be disregarded and we would be able to export as much as we want?

That seems to be a separate question.

It is a very wide question. The discussions are still going on. At the moment it would be hypothetical.

Can I take it the Minister will not sign a free trade agreement which will give us quota restrictions with Britain?

That is a separate question.

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