Dáil Éireann debate -
Wednesday, 23 Nov 1966

Vol. 225 No. 9

Control of Imports (Quota No. 53) (Miscellaneous Brushes) Order, 1966.

Minister for Industry and Commerce (Mr. Colley)

I move:

That Dáil Éireann hereby approves of:

Control of Imports (Quota No. 53) (Miscellaneous Brushes) Order, 1966.

An explanatory memorandum has been circulated to Deputies giving particulars of the quota orders the approval of which I am moving.

The Free Trade Area Agreement between this country and the United Kingdom provides for the retention of quantitative restrictions on the importation of brushes, brooms and mops up to 30th June, 1975. The quota order which was in force up to 30th June, 1966, imposed restrictions on all such articles, without limit as to value, and licences were granted to importers on the basis of their purchases from Irish manufacturers. In practice an importer could purchase cheap brushes from an Irish manufacturer and on the basis of these purchases be entitled to a licence which he could use to import expensive brushes. The Government decided that this situation should not continue and agreement was reached with the British authorities on the institution of a new quota for brushes, brooms and mops costing less than 30/-per dozen, which would operate from 1st July, 1966. To give effect to the decision it was necessary to make a new quota order and to amend the existing quota order to exclude from its scope brushes, brooms and mops costing less than 30/- per doz.

Under the terms of the Free Trade Area Agreement, the Government was obliged to eliminate by 1st July, 1966, quantitative restrictions on the importation of stockings of silk or manmade fibres costing more than fifty shillings per dozen and originating in the United Kingdom. The Agreement provides for the retention of a quota on stockings which do not exceed 50/-per dozen pairs in value. With the agreement of the manufacturers, the Government decided to eliminate, globally, the quota on silk stockings costing more than 50/- per dozen pairs and it was necessary to amend the existing quota in order to exclude these articles from its scope.

The Government were also obliged by the Free Trade Area Agreement to eliminate quantitative restrictions on superphosphates of United Kingdom origin. The termination of this quota on a global basis was considered but it was decided that this would be detrimental to the interests of the Irish manufacturers and that the quota should be retained against third countries. It was necessary, consequently, to amend the existing quota order to confine the quota to superphosphates originating in countries other than the United Kingdom.

Mr. Cosgrave

I should like to know whether the proposed alterations in effect mean in respect of brushes and silk stockings that they apply to the cheaper types of brushes and stockings. I should like the Minister to say to what extent this will involve increased imports from Britain and if he has received any representations from the trade interests concerned. In respect of the superphosphates quota order, could the Minister say whether this also will result in increases in imports and whether the prices will be altered?

The position at the moment is that a number of superphosphate manufacturers here have a market available to them. Can the Minister say that when this order takes effect there will be some alteration or anticipated alteration in the position? If so, is it likely that the prices charged will mean that superphosphates will be available at a lower price or will it mean a change in the quality or type of superphosphates available?

Mr. Colley

In regard to the quota on brushes, brooms and mops and on silk stockings, the quota is an increasing one over a period of years up to 1975 so that it would be true to say that as a result of this imports would increase, but the House will appreciate that it is in the context of the Free Trade Area Agreement and this is, if you like, a control of the increase in the imports on a graduated basis designed to minimise the effect on our manufacturers here. In regard to the superphosphates quota, I understand that the amount involved here would be very little but that there is a subsidy on our own Irish superphosphates, which is designed to keep it at the world price. Therefore, as far as the consumer here is concerned, the price will not be affected. It will still be maintained at the current world price.

Mr. Cosgrave

Does this mean that we will still continue the subsidy? Is it subsidised so that it is sold at the same price as that from external sources?

Mr. Colley

I do not follow.

Mr. Cosgrave

Does it follow that we have to subsidise our own manufacturers here in order to enable them to buy at an equivalent price to what they could import at?

Mr. Colley

Yes, this is true.

Mr. Clinton

Would the Minister say if there is much of a difference in price?

Mr. Colley

I have not got the information here, but as far as I recollect, there is not very much difference. It is certainly not a substantial difference.

Mr. Cosgrave

Is this likely to have any effect on employment in the industry?

Mr. Colley

No.

Mr. O'Hara

I am sure the Minister appreciates that it is a number of combines who handle fertilisers. They are handled by one or two groups. When the stuff is imported, they control the whole price structure. It is what they say that really counts. If there were more liberal trading in this commodity, it would have the effect of reducing the price somewhat. I could not say to what extent it would reduce it. If there were freer trade within the country instead of supplying this commodity to one or two firms and allowing them more or less to fix prices among themselves, this would bring about some relief.

Mr. Colley

What the Deputy says may well have some substance in it but he will appreciate that the same kind of case could be made in regard to most other commodities. We have to balance, on the one hand, the possibility of getting goods at the lowest possible price against, on the other hand, the safeguarding of the employment of the people engaged in those industries in this country. We have to try to steer an even course between those two objectives.

Question put and agreed to.