asked the Minister for Finance if he is aware that all employers in manufacturing industry, including exporters, in Britain will soon be receiving a subsidy for each man employed equivalent to a two per cent subsidy on wage costs; and that this in actual fact is an attempt to subsidise exports, and consequently violates the terms of the Anglo-Irish Free Trade Agreement; if he has been notified of these proposals; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - British Employment Subsidy.
5.
I am aware that under the British Selective Employment Tax it is intended that employers in manufacturing industry will be paid refunds which will exceed the amount of Employment Tax paid by them. The matter is being examined to determine whether the effects of this arrangement on Anglo-Irish trade would warrant the initiation of consultations with the British Government under paragraph (2) of Article XIII of the Free Trade Area Agreement.
I was not aware of the British Government's proposals for the tax before they were announced in the House of Commons.
When will the Minister know exactly whether or not this contravenes the Anglo-Irish Trade Agreement? When will he be in a position to know this?
I told the Deputy that we are having it investigated at the moment by our own experts. If we find it does contravene Article XIII, we shall make the appropriate representations.
Mr. O'Leary
Is the Minister satisfied with the restriction of British investment in this country and is he happy with the progress of the Trade Agreement so far?
It has not come into effect yet.
Mr. O'Leary
What about the preliminary shots?
Will the Minister's investigation be complete before 1st July?
I expect it will.
And, if necessary, he will make representations?
Yes: it is so provided in the Agreement.