Tairgim: Go ndeonfar suim nach mó ná £8,083,000 (ocht mhilliún ochtó thrí mhíle punt) chun slánaithe na suime is gá chun íochta an mhuirir a thiocfaidh chun bheith iníoctha i rith na bliana dar críoch an 31ú lá de Mhárta, 1968, 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 sé i gceist agam dhá Meastachán Forlíontach a glacadh in éineacht leis an bpríomh Meastachán. Tá an chéad meastachán forlíontach le haghaidh £137,000 agus táan dara ceann le haghaidh £2,647,000. Sé £2,784,000 iomlán an dá Mheastachán forlíontach agus deontas iomlán de £10,867,000 a bheidh ann don bhliain.
Lean táirgeadh tionscalach ag méadú i rith na bliana so thart ag ráta níos airde ná an ráta méadaithe le tamaill anuas. Insan ráithe dar críoch Márta, 1967, bhí méadú de 7.9 faoin gcéad i méid táirgeadh tionscal déantúsaíochta i gcomparáid leis an dtréimhse céanna anuraidh. I rith an ama céanna bhí méadú nach lú na 9 faoin gcéad i gcás tionscal earraí so-iompartha. Do réir an eolais atá ar fáil don ráithe dar críoch Meitheamh, 1967, tá gach cosúlacht ann gur leanadh den méadú san toirt táirgeadh. I Márta na bliana 1967 bhí méadú de bhreis is 2,000 ar líon na ndaoine a bhí fostaithe i dtionscail déantúsaíochta.
I rith 1966 agus 1967 leathnaíodh agus géaraíodh ar an bhfeachtas chun tionscail nua a mhealladh. Thug mo réamhtheachtaí agus mé féin ar aon roinnt turasanna thar lear leis an bhfeachtas a chur chun chinn. Leathnaigh ionadaithe An Údaráis Forbartha Tionscail a gníomhachtaí isteach i réimsí nua agus géaraíodh ar an bhfechtas insna tíortha agus insna láthair tionscail a bhfuil cuma ortha go mbeadh an toradh is fearr le fáil.
Tá mé ag déanamh cúraim ar leith de go bhféachfar chuige go mbeidh bun-ábhar dúchasach agus bun-ábhair a cuireadh ar fáil ag tionscail Éireannacha eile mar bhonn ag oiread thionschamh nua agus is féidir. Tá roinnt dreamanna ag plé le seo agus déanann an tÚdarás aithbhreithniú rialta air.
I rith na bliana seo chaite cuireadh de chúram ar an Údarás cuidiú le tionsclóirí Éireannacha i mbunú tionscail nua agus pléann an tÚdarás anois le gach tairiscint do thionscail nua. Mar chuid den chúram seo, chuireas de dhualgas ar an Údarás an chlár um thionscail bheaga a thionschaimh, agus an scéim a riaradh insna réamhcheanntracha tastála. Tá sé i gceist agam go gcuirfí réimse seirbhísí agus cabhair eile a bheadh dírithe ar a bhfadhbanna ar fáil do tháirgeoirí beaga tríd an scéim seo. Trí bheart anna phraicticúla den chineál seo, tá súil agam go gcothófar méadú i líon na dtionscail mbeaga éifeachtach, go háirithe insna mbailte cúige.
Ag an 31ú Márta, 1967, ceadaíodh deontaisí do isteach is amach le £41 milliún ag Foras Tionscal. Íocadh £21 milliún den suim seo agus d'fhág san go raibh beagnach £20 milliún le híoch fós ag an 31 Márta, 1967. Mar aon le sin, bhí chaitheachas caipiteal ar fhorbairt estát tionsclach de bheagnach £460,000.
Bhí infheistiú iomlán caipitéal de bheagnach £88 milliún insna hairleogaí go léir, insna réigiúin neamh-fhorbartha agus eile, ceadaithe ag an 31 Márta, 1967, agus táthar ag súil go gcuirfear fostaíocht ar fáil do thart ar 39,700 duine.
Tá obair ar bhunú dhá heastáit tionscail ag Port Lairge agus ag Gaillimh faoí sheoil. Tá monarchain ar fáil ar chíos anois i bPort Lairge agus beidh na monarchain tosaigh ar fáil i nGaillamh i lár na bliana seo chugainn. Is féidir gur cabhair tábhachtach é do lucht tionscail seanbhunaithe, ar mian leo a gcuid tionscal a fhorbairt ach a bhfuil bac ortha toisc go bhfuil a náitreabh míoiriúnach nó uireasach, monarchain réamh-dhéanta a bheith ar fáil ar chíos.
De réir figiúirí sealadacha, b'é luach iomlán ár n-onnhmhuirí insna naoí mí dar críoch Meán Fomhair, 1967, ná £203 milliún, breis de £35 milliún i gcomparáid le h-onnmhuirí san tréimhse céanna anuraidh. Mhéadaigh allmhuirí de £18 milliún go £291 milliún; bhí laghdú, áfach, de bheagnach £16 milliún san "mbreis allmhaireachta" Chuidigh an Conradh Saor Thrádala linn ár nionad ar mhargadh na Breataine a dhaingniú. Ní h-ionann san, ár ndóigh, is a rá go bhfuil an gá d'éagsúlacht margaí onnmhuireachta ligthe i ndearmad againn. Le fada anois tá sé mar pholasaí againn cabhair a thabhairt d'onnmhuiréoirí na tíre seo freastal a dhéanamh ar mhargaí ar fud an domhain agus sa tslí sin cothromaíocht níos fearr de réir tíreolaíochta a bhaint amach i gcúrsaí trádála. D'éirigh go maith leis an bpolasaíseo mar is léir nuair a smaoinítear go bhfuil 40 faoin gcéad d'onnmhuirí d'earraí déantúsaíochta ag dul go tíortha seachas an Bhreatain.
In the Book of Estimates, the net estimate of £8,083,000 for the year 1967-68 compares with a sum of £8,669,560 granted in 1966-67 and shows a net decrease of £586,560. On the 9th March, 1967—too late for inclusion in the Book of Estimates— an additional sum of £1,288,000 was granted by way of a Supplementary Estimate, bringing the total amount granted in 1966-67 to £9,957,560.
It has been agreed that the subject matter of the two Supplementary Estimates will be discussed in this debate in conjunction with the main Estimate. The first Supplementary Estimate is for £137,000 and the second supplementary is for a sum of £2,647,000. The total of the supplementary estimates is £2,784,000 and the total grant for the year will then amount to £10,867,000.
The actual position is, therefore, that the Estimate for 1967-68, including the Supplementary Estimates already mentioned, is greater than the total sum granted in 1966-67 by £909,440.
Industrial production has continued to expand in the past year, and at a higher rate than for some time past. In the March quarter of 1967, the volume of production of manufacturing industries showed an increase of 7.9 per cent over the corresponding period last year, while the increase in the case of all transportable goods industries was not less than 9 per cent. Preliminary indications for the June quarter of this year are that the rate of increase in volume of production has been more than maintained. Employment in manufacturing industries in March, 1967, was up by almost 2,000 on the year before.
The preparation and reorganisation of industry to meet conditions of freer trade, one of the most important aspects of my Department's work, can be said to have commenced in 1961 with the surveys of the Committee on Industrial Organisation. The Government, acting on the Committee's recommendations, made arrangements for the provision of special grants towards the cost of re-equipment and improvement of premises. It encouraged the setting up of Adaptation Councils and Trade Union Advisory Bodies and provided financial assistance for them.
The Industrial Reorganisation Branch in my Department was set up to assist industry in the implementation of the Committee's recommendations and, in general, action has been taken to provide a climate conducive to the undertaking of industrial reorganisation measures. However, it is only industry itself which can take the effective decisions in relation to adaptation and the various schemes of Government aids will be of little avail if there is not among all concerned in industry a continuing determination to maximise our resources and increase our competitive efficiency.
The CIO distinguished between short-term adaptation—re-equipment, expansion etc.—and long-term adaptation measures covering such matters as rationalisation, co-operative marketing, training, research and design. Progress with short-term adaptation measures since 1961 is most easily illustrated by reference to investment by individual firms. The adaptation grants scheme which was introduced to assist programmes of short-term adaptation and which provided 25 per cent grants towards the outlay on buildings and equipment for firms adapting to free trade conditions operated with effect from late 1961.
The scheme was intended to last for a period of three years but was subsequently extended for a fourth year and there was a further and final extension to the end of 1967 with a deadline for the receipt of applications at the end of September this year. In all, the scheme was available to cover adaptation expenditure incurred over a period of six years. Up to the end of June last, on the basis of approved grants, planned investment in buildings, plant and machinery has been of the order of £66 million and the grants approved towards this total amount to more than £14.5 million.
It is particularly gratifying that in 1966 the approved grants exceeded £4 million with corresponding planned capital investment of £18 million, representing nearly one-third of the total up to the end of that year. This acceleration of activity in 1966 was no doubt due partly to the more definite indications of future trading conditions following the conclusion of the Free Trade Area Agreement with Britain in 1965. There has also, of course, been investment by some firms who have not, for one reason or another, sought state grants.
I have mentioned already the setting up of Adaptation Councils and Trade Union Advisory Bodies. Adaptation Councils have helped to keep alive the sense of urgency generated by the CIO reports. Their main tasks from now on will be in the field of co-operative effort to maximise on an industry basis the benefits which should accrue from the individual investments by firms in adaptation measures.
Progress in co-operative activities and in improvements in techniques and attitudes is rather more difficult to quantify than investment by individual firms. There are, however, signs that progress has been made. Over the last few years we have seen a movement away from the secretive attitudes and competitiveness in a narrow sense which the CIO encountered so often in Irish industry. Out of this broadening of attitudes have developed rationalisation measures—whether mergers or inter-firm arrangements in production —which have left much of industry better fitted to meet free trade competition than at the time of the CIO survey.
There are signs of more progressive attitudes also in other aspects of long-term adaptation such as training, research and design, and joint marketing. The growing awareness of the need for better management and operative training is evident from the increasing extent to which the technical assistance grants scheme is being used. Industry is also, I am glad to say, much more alive, to the importance of research and design than it has been in the past. My Department in its contacts with industrial firms continues to stress the importance of research and design and to work for the strengthening of contacts between industry and the responsible bodies in these fields—the Institute for Industrial Research and Standards and the Kilkenny Design Workshops.
In certain industries, the employment of design experts has set a headline which I hope other industries will follow. The progress made by the Wool Weavers' Co-operative and the Menswear Fashion Guild Ltd. shows that properly planned co-operation in export marketing yields worthwhile results. There have been more recent developments in the footwear and furniture industries, and I am also aware that other industries are making plans for co-operation in exports. I would, however, like to see much more activity in this field. It is, I think, obvious that a well-planned export drive involving the combined resources of a number of firms will be more effective than the unaided efforts of the average single firm.
With the object of further stimulating activity in long-term adaptation, I have recently instituted a series of meetings between myself and the chairmen of the various Adaptation Councils and of bodies who have undertaken responsibility for adaptation in industries not having Councils. At these meetings we will be examining together the problems of the various industries, the extent to which measures recommended by the CIO have been adopted, and any other steps that can be taken to maintain the competitiveness of industry in freer conditions of trade. I have also arranged for periodic meetings with representatives of the trade unions. I am hopeful that these meetings will be of great value in helping me to keep intimately in touch with the problems of adaptation in industry and in particular in highlighting areas where my Department can be of assistance.
The campaign being conducted by the Industrial Development Authority to attract new industry from abroad showed good results in 1966. Of the 54 new enterprises which were established during the year, 40 had foreign participation and accounted for 90 per cent of the capital investment of £8.9 million and 95 per cent of an employment potential of 4,500. During the first nine months of the current year a further 46 new enterprises involving an estimated capital investment of £9.2 million and an employment potential of 3,100 commenced production. Enterprises with foreign participation were again well to the forefront accounting for 36 of the new enterprises and for 82 per cent and 85 per cent of the estimated investment and employment respectively. In addition at the end of September, 1967, there were 24 new factories under construction of which 16 had foreign participation representing a capital investment of £6.9 million out of a total of £7.9 million and an employment potential of 1,300 out of a total of 1,600.
During 1966 and 1967 the campaign to attract new industry was extended and intensified. Both my predecessor and I undertook a number of promotional visits abroad. Also Board members and senior staff of the IDA travelled widely in Europe and the US on promotional work and in connection with particular industrial projects. The Authority's representatives extended their activities into new territories and intensified the campaign in the countries and industrial centres which offered the best prospects.
Despite the fact that 1966 was quite a good year for foreign industry starting up here, it would be unwise to assume that we can escape the adverse effects of the slowing down in the industrial growth in Europe and the restraints which have been imposed by some countries, including Britain, on overseas investment. Enquiries from some countries have fallen off considerably and grants for new industries approved in the year ended 31st March last reflect the fall off from the previous year although they are in line with earlier years.
I am particularly anxious that adequate measures be taken to ensure that indigenous and other home produced industrial raw materials should be the basis of as many new enterprises as possible. A number of interests are involved in this and the matter is kept under constant review by the IDA.
During last year the IDA was assigned responsibility for assisting Irish promoters in establishing new industries and now handles all proposals for new industries. As part of this assignment I entrusted the Authority with the task of initiating the Small Industries Programme and supervising the pilot scheme in the test areas. A new Small Industries Division in the IDA is vigorously engaged in getting the programme under way. It is my intention that the scheme should bring to the small producer a range of services and other aids related to his particular requirements. By such practical measures I hope to foster the growth of efficient small industry, particularly in our provincial towns. Although the programme is new to Ireland various schemes to promote small industry have been in operation in other countries. The valuable contribution which small industry can make to national growth is well recognised among many of the industrially advanced countries where small establishments continue to provide a high proportion of manufacturing output and employment despite the tendency for most modern enterprises to increase in size. It is hoped that the programme will in due course be extended to all areas and will engender a new spirit of enterprise and self reliance in the community which is so essential if we are to achieve the economic expansion necessary to ensure full employment.
The Industrialists Promotional Panel set up in 1966 to assist the IDA in securing new industries, consists of some leading Irish and foreign industrialists who have established plants here. The arrangement is aimed at enlisting the help of the Panel members in initiating contacts abroad and in advancing the idea of Ireland as a location for industry. I understand that members of the Panel have helped in these respects. Some useful suggestions regarding the Small Industries Programme, as well as offers to help small industries, were made by members of the Panel. Panel members also furnished useful comments regarding industrial development grants.
A survey of grant aided industries, both Irish and foreign, was initiated in 1966 under the auspices of the IDA and is now nearing completion. Some of the information obtained from the survey has been of help in connection with the overall re-appraisal of the programme for encouraging the establishment of new industry which is also nearing completion.
An internationally experienced firm of consultants was engaged to assist the Industrial Development Authority in this re-appraisal which embraces a very wide field including examination of the existing financial incentives, the methods of attracting new industry and opportunities available for the establishment of particular groups of industry.
It is likely, however, that far reaching changes will need to be made over the whole field of our industrial development programme if we are to continue to meet with success in developing industry in Ireland to meet the goal of full employment and I anticipate the necessity for introducing new legislation in the near future.
The provision for An Foras Tionscal in the printed Estimate for 1967-68 is £5.5 million which was the same as that for 1966-67, after taking the Supplementary Estimate in March, 1967, into account. In the second Supplementary Estimate before the House I am proposing to increase this year's provision by £2.5 million giving a total of £8 million.
The actual payments made by An Foras Tionscal for the year ended 31st March, 1967, were £5.46 million made up of:—
|
£m. |
|
|
(1) Grants under the Undeveloped Areas Acts |
1.29 |
|
(2) Grants for projects outside the Undeveloped Areas |
1.20 |
|
(3) Adaptation Grants |
2.47 |
|
(4) Market Development Grants |
0.08 |
|
(5) Industrial Estates |
0.42 |
Up to 31st March, 1967 the total amount of grants approved by An Foras Tionscal was roughly £41 million, of which almost £21 million was paid leaving outstanding commitments, at 31st March last, of almost £20 million. In addition total capital expenditure to 31st March, 1967 on the development of industrial estates was approximately £460,000.
The total capital investment involved in all projects in the Undeveloped Areas and elsewhere approved as at 31st March, 1967 is estimated at £88 million and it is expected that employment will be afforded for some 39,700 persons. Out of the total of 315 new industries or major development of existing industries assisted by grants made by An Foras Tionscal, 186 were promoted either entirely by foreign interests, or by foreign interests in association with Irish interests.
For works of enlargement and adaptation, grants amounting to £14 million for 793 schemes requiring a total capital expenditure of £63 million have been approved up to 31st March, 1967.
In the current financial year to date grants made by An Foras Tionscal have reached a total of £3.8 million, of which payments in respect of new industries in the country as a whole have accounted for £1.6 million. Adaptation and enlargement grants have accounted for £1.8 million. The balance of £0.4 million was expended in connection with establishment of the industrial estates. A recent review by the Board of the further expenditure anticipated during the remainder of the financial year shows that payments on approved projects will amount to £4.2 million involving an excess in expenditure during the full year of about £2.5 million. The increase anticipated in this expenditure is mainly due to the unusual difficulties inherent in the framing of annual estimates of expenditure. These difficulties, which I mentioned to the House on a previous occasion, stem from various factors including the uncertainty of dates of payment in connection with new industries and the number and types of proposals which may be received in any particular year. The extension of the time-limit for application for adaptation grants to 30th September, 1967, has further contributed to the anticipated increase in expenditure.
Work on the development of two industrial estates at Waterford and Galway is proceeding. Factories for renting are now available at Waterford and the first factories will be available at Galway in the middle of next year. This should be a major inducement for industry to come to Waterford and Galway. The availability of readybuilt factories for renting can also be an important aid to existing industrialists wishing to develop but prevented from doing so by the inadequacy or unsuitability of their existing premises. I am certain that enterprising industrialists will not overlook this point. An Foras Tionscal is co-operating with the Industrial Development Authority in implementing the Small Industries Programme to which I have already referred.
From its establishment as a statutory Board in September, 1959, until the end of the financial year 1966-67, Córas Tráchtála has received grantsin-aid totalling more than £2.5m. The Export Promotion (Amendment) Act, 1967, raised the statutory limit for grants that might be made to the Board to £4.5m. The services and facilities provided for exporters by Córas Tráchtála include travel incentive grants, trade fair grants and grants for market research, design projects, packaging and various other purposes.
The provision for Córas Tráchtála in the volume of Estimates for 1967-68 is £600,000. When this figure was fixed it was not possible to give a firm estimate of the likely extent of the demands on the Board's funds. The demands for assistance under the various incentive grant schemes operated by Córas Tráchtála have been very heavy.
The present year has shown a considerable increase in activity in the export field by manufacturers. More and more manufacturers with the assistance of the Board are visiting export markets, undertaking market research, taking part in trade fairs and venturing on brand advertising in new markets. There has also been an increase in co-operative efforts to promote exports as shown by the special shows and promotions arranged by Córas Tráchtála for the footwear manufacturers, the ladies fashion trade, the men's wear manufacturers and the furniture industry. The additional £117,000 provided in the Supplementary Estimate is required mainly to meet the cost of export promotion. This is all very welcome activity.
A significant new development has been the introduction by Córas Tráchtála of a range of services for exports of capital goods. A special section has been established with responsibility for initiating industrial market research projects, organising trade fair participation and establishing contacts with buying organisations abroad.
The opening of new trade promotion offices in Melbourne and Port of Spain, Trinidad, reflects the emphasis which Córas Tráchtála place on the need for market diversification and the achievement of a better geographical balance in our overseas trade. Córas Tráchtála also organised last month major Irish promotions in Cincinnatti and Rochester, USA, and in Chester, Cheltenham and Bristol.
Kilkenny Design Workshops, which have so far interested themselves in woven textiles, printed textiles, silver and metalwork, ceramics, candle-making and woodturning, provide design and prototyping services for industry. Increasing competition at home and abroad makes improvements in design and quality urgently necessary for many of our established manufacturers. I had the pleasure of opening a permanent Kilkenny Shop to sell merchandise, designed by the Workshops and manufactured by Irish firms, in a New York department store. The products—representing the first generation of Kilkenny Designs in commercial production—include table linen and furnishing fabrics, ceramics and silver, gift ware, wood, candles, towelling and bedspreads.
Other promotions of new Kilkenny Design Workshops designed merchandise took place last month in both London and Dublin. Another interesting project is the proposed establishment of an international centre for industrial designers at Kilkenny where design problems and possibilities could be worked out in up-to-date conditions and in an atmosphere where free and fruitful exchange of ideas can be facilitated.
A favourable feature of industrial development in 1966 was the marked rise in exports of industrial products which increased by over £14 million or 17 1/2 per cent compared with 1965. Industrial exports for the first half of 1967 were nearly 30 per cent in value above those for the corresponding period in 1966 and this trend augurs well for the future. This rapid growth is attributable to the fact that the majority of the manufacturing undertakings established here in recent years are based on producing for export and many of them are only now coming into full production. The new undertakings which commenced production in 1966 and 1967 are in the main export-orientated and will be making an increasing contribution to our export trade in the coming years.
Provisional figures for the first nine months of this year show that total exports reached a figure of £203 million, an increase of £35 million over the corresponding figure for 1966. Imports increased by nearly £18 million to £291 million; the import excess, however, was down by nearly £16 million. A detailed breakdown is not yet available but the latest available figures indicate that industrial exports are continuing to increase.
The Anglo-Irish Free Trade Area Agreement has helped to secure our position in the British market. In the first full year of the operation of the Agreement Irish manufacturers took full advantage of the opportunities opened to them. Britain must be regarded as the most obvious outlet for our goods. This does not mean, however, that we are overlooking the need for greater diversification of export markets. It has, in fact, been the policy for many years to assist exporters to develop a better geographical balance in the pattern of their overseas trade. The success of these efforts may be measured by the fact that nearly 40 per cent. of our exports of manufactured goods now go to countries other than Britain.
Negotiations on Ireland's application for accession to the General Agreement on Tariffs and Trade (GATT) within the Kennedy Round of trade negotiations were completed in June. Details of the tariff concessions made by Ireland have been laid on the Table of the House. On the conclusion of the negotiations Ireland's application, and that of the other acceding countries, was put to a vote of the member States and having obtained the necessary favourable votes Ireland will become a Contracting Party to the GATT one month after the signature of the Protocol of Accession. The protocol will be signed as soon as the approval of the Dáil has been obtained and the necessary motion will be moved at an early date. A White Paper will be issued before the motion is moved. Accordingly, I do not think it is necessary to go into the matter in any more detail on this occasion.
The question of legislation to deal with dumped and subsidised imports has been under consideration for some time past. Our original proposals in this regard have had to be revised in certain respects to comply with GATT principles and to meet our obligations under the Free Trade Area Agreement with the United Kingdom. A Bill has now been drafted and it is hoped to have it enacted fairly soon.
The Institute for Industrial Research and Standards continues to provide very valuable services to Irish industry and the quality and sophistication of the work expected from, and provided by, the Institute is constantly increasing. These services are becoming even more important in the present context of accelerated industrial expansion and adaptation. The number of firms availing themselves of the facilities provided by the Institute through its technical divisions and departments is growing annually and the Institute is constantly expanding its range of activities to meet the demand. The many Deputies who attended the Open Week of the Institute recently will, I am sure, appreciate fully the important and wide ranging functions performed by the Institute.
In addition to the widely availed of testing facilities provided by the Institute in its laboratories there are many other services of growing importance provided for the benefit of Irish industry. Members of the Institute staff visit industrialists and help to solve technical problems on the factory floor. Increased emphasis is now being placed by the Institute on Design and Development projects, some of which are being sponsored by industry itself. The Institute also secures research results from overseas through its contacts with research organisations abroad and assesses and applies these results for the benefit of Irish industry.
A number of Research Fellowships and Industrial Scholarships are awarded annually, and four prominent firms are now granting endowments to the Institute's fund set up for this purpose. The Institute is now playing a role of increasing importance in the field of consumer protection and it is open to receive and, if possible, to resolve in consultation with the manufacturer, genuine complaints about the quality of Irish made goods.
As I did not wish the Institute to undertake any major new developments pending an examination of the whole field of research and development, I had decided to give the Institute the same grant-in-aid this year as last, and accordingly the sum of £350,000 was included for this purpose in the printed Estimate. The Institute has represented to me, however, that increases in costs and the natural growth of a number of their existing activities would mean that they would not be able to maintain their services on the same grant as last year. I accordingly now propose to provide an additional sum of £30,000, included in the second Supplementary Estimate which is before the House, to enable the Institute to maintain and to some extent expand its services to industry but without, for the time being, entering into any major new field.
You will recall that in October, 1965, my predecessor introduced certain price restraints which were aimed at securing a measure of price stabilisation. These restraints aided by a vigilant consumer public and a generally co-operative reaction by manufacturers, importers, and wholesalers, have helped to slow down the advance in the Consumer Price Index. In the period since mid-August, 1965, the index has advanced by 12 points, compared with an advance of 21 points in the previous two years. The increases in the index undoubtedly reflected the 10th Round wage increase, increases in the cost of imported raw materials and, to an extent, Budget taxation.
I am sorry to say, however, that the position at present is not such as to allow me to forecast an early withdrawal of the existing general price restraints. I sincerely hope that a situation will not develop which would force me to introduce even more stringent measures. No equitable form of statutory price control can secure stable prices in the face of unavoidable increases in raw material or conversion costs. Nevertheless, I will continue to use my powers under the Prices Acts, 1958 and 1965, to maintain, as far as possible, the measure of stability achieved to date. I must emphasise that the real answer to increases in raw material or conversion costs is greater productivity which can only come about by mutual understanding between management and workers.
The first Supplementary Estimate of £137,000 is necessary to meet millers' losses on sales of flour and wheatenmeal in the period from 28th November, 1966, to 11th March, 1967, through maintaining previous prices for flour and wheatenmeal in that period pending the completion of the Flour and Bread Prices Advisory Body's report.
In October, 1966, I established a Prices Advisory Body under the Prices Acts, 1958 and 1965, to conduct a public inquiry into millers' prices for flour and wheatenmeal and on proposals by the millers to increase their prices. The Report of the Prices Advisory Body was completed on 22nd February last and was published on 10th March. I accepted the recommendations in the report, which were that millers' prices for flour and wheatenmeal should be increased by specified amounts to compensate for increased costs. The increased prices were put into effect by the millers as from 13th March last.
I should explain that in the grist for the production of flour and wheatenmeal, millers use a "mix" of homegrown and imported wheat. The homegrown wheat is considerably more expensive. The quantity of suitable native wheat available from the 1965 harvest for flour production was below average, and the millers made considerable savings through the use of a higher than normal proportion of lower-cost imported wheat in the grist. As had been the practice in previous years when a similar situation arose, these millers' savings were used to meet losses on the sale for animal feeding of wheat which had been found unsuitable for milling into flour and wheatenmeal.
The quantity of native wheat from the 1966 harvest which could be used for flour and wheatenmeal production was considerably in excess of the quantity from the 1965 harvest; this, of course, resulted in a higher grist cost to the millers as from 28th November, 1966, when they commenced using the higher percentage of native wheat. The millers sought my approval to an interim increase in flour and wheatenmeal prices as from 28th November to compensate them for this higher grist cost and for increases in other costs. I arranged with them to defer their proposed price increase until the report of the Prices Advisory Body became available and, at the same time, with Government approval, I gave them an undertaking that any losses incurred by them as a result of maintaining their existing prices subsequent to 28th November would be recouped to them. These losses totalled £297,500, but, as the millers had a balance of £160,500 savings on hands from the reduced user of native wheat in 1965-66, the net losses to be recouped to them in accordance with my undertaking amounted to £137,000, which is the amount of this Supplementary Estimate.
I recommend, therefore, that the House should approve of this Supplementary Estimate.
Interest in mineral exploration was maintained during the past year. Some 200 new applications for prospecting licences were received in 1966 and further applications in excess of 300 were received in the half-year ended 30th June, 1967. 428 licences were current at 30th June last.
The valuable lead/zinc/silver mine at Tynagh, County Galway, has had a very satisfactory first working year. The regular shipments of concentrates from the mine to European smelters since the beginning of last year are responsible for the substantial rise in exports of metal ores and concentrates for the year. The increase in appropriations in aid as shown in the Estimates is due mainly to royalties payable in respect of the mine under the terms of the State mining lease.
A lease of State-owned minerals at Gortdrum, County Tipperary, has been granted to the operating Company, Gortdrum Mines, Ireland Limited. The company announced last year the completion of a £2.2m. financing arrangement to bring this copper/silver deposit into production later this year and actually commenced production at the end of July. An annual output of about 16,000 tons of concentrates has been projected. Work to bring the lead/zinc/silver mine at Silvermines, County Tipperary, into production eary in 1968 is progressing. Projected annual production is 200,000 tons of concentrates. All the production of these three base metal mines will be exported and it is expected that the mines will contribute substantially in the years ahead to economic growth in terms of export earnings and employment. A further promising lead/ zinc deposit discovered at Keel, County Longford is still under investigation.
The outlook for barytes is good. Production in the Silvermines area increased last year and further substantial increases are expected when known deposits at Tynagh and Derryginagh, Bantry, are brought into production.
An option to purchase the assets of St. Patrick's Copper Mines, Limited, has been granted to an international consortium who are carrying out a study of the mines potential with a view to resumption of operations. The option is for a term of six months initially renewable for further six months terms up to a maximum of thirty months. The consortium is liable for the cost of care and maintenance during the option period and has undertaken to incur certain minimum expenditure on investigation and exploration.
The oil exploration licence of Marathon Petroleum Ireland, Limited, and Associates is due for renewal for a further five year term in respect of about 75 per cent of the original area. Drilling during the initial term did not have positive results. The companies' activities last year were confined to geological studies and seismic and marine studies in territorial waters.
Preparation of legislation to enable ratification and implementation of the Geneva Convention on the Continental Shelf which governs the exploration and exploitation of petroleum deposits and other mineral resources outside the territorial waters is at an advanced stage.
Subsidies have been paid on ships built in Verolme Cork Dockyard from the commencement of shipbuilding operations. A total of eight ships have either been built or are under construction. Payments are made from time to time on the recommendations of a special committee.
The sum provided for such subsidies in the year 1967-68 is £350,000 of which £75,000 has already been paid. Total subsidy payments to date have amounted to £1,101,000.
The company called in the services of a leading firm of industrial consultants to examine their activities and to make recommendations as to possible diversification into other lines of industrial activity. Arising from their report and its consideration by the special committee, certain recommendations concerning the future of the dockyard are at present being examined by the Government.
The Dáil will be aware already that an order for a car ferry required by B & I has been given to the Cork Dockyard and the yard qualifies for a shipbuilding subsidy in respect of it.
Under the Irish Steel Holding, Limited, Act, 1960, and the Irish Steel Holdings, Limited (Amendment) Act, 1963, Irish Steel Holdings, Limited, was permitted to increase its share capital to £6,000,000 to be subscribed, as required, by the Minister for Finance in connection with its development programme approved by the Governsation ment in 1960. The capital subscribed to date is £5,749,995.
The general recession in 1965-66, especially in the building industry, affected the company's trading in its last financial year to 30th June, 1966, and the company showed a decline in sales of almost £500,000. The company made a loss of £65,657 in that year, but it is expected that a better picture will be disclosed for the company's latest financial year to 30th June, 1967.
A leading firm in the international steel industry has carried out a detailed survey of all aspects of the company, its potential and profitability, and has made recommendations which are at present under active consideration.
The bridge between the mainland and Haulbowline Island has been completed and is now in service. The bridge benefits the company and its customers by enabling trade to be conducted by road as well as by sea and it also opens up significant possibilities for industrial development in the Ringaskiddy area.
The nitrogenous fertiliser factory constructed by Nítrigin Éireann Teoranta at Arklow went into full production in December, 1965. The company now gives employment to 495 persons. The company's new plant for the production of concentrated complete fertilisers was completed early in 1967 and is now in production. Work was also completed last year on a fertiliser complex in Dublin, established by private enterprise. There is also substantial development in this field by private industry in New Ross. These developments have been supported by the allocation of State grants, and together with the State enterprise at Arklow, represent a very considerable advance in the national production of fertilisers.
I propose to give increased attention to the problems of improving the efficiency of distribution and the protection of consumers. Existing regulations designed to protect the consumer are to a considerable degree out-of-date in modern conditions. I have, therefore, prepared a programme under which these and related matters will be thoroughly reviewed. Some of the matters involved will require amending legislation, and I hope to put certain proposals before the House later in the year.
The Patents Act, 1964, and the Patents Rules, 1965, came into operation on 1st July, 1966. The Performers' Protection Bill lapsed on the dissolution of the Dáil in March, 1965. In the light of representations made by interested parties a revised Bill has been drafted by the Parliamentary Draftsman and it is hoped to reintroduce the Bill early in this session.
With the approach of freer trading conditions every effort must be made to increase our exports, and this can be achieved only by increased productivity. Every assistance that my Department can give to achieve this objective will be maintained and I can assure the House that the Government will not be lacking in financial support if the need arises. There is, I feel, a growing awareness by the workers and the employers of the greatest need for close co-operation if we are to surmount the difficulties of the immediate future and maintain stability on the home market. Notwithstanding the problems we were faced with in the past twelve months our exports reached an all-time high and I am confident that with the full support of all our people we can look forward to greater achievements in the future.
