Dáil Éireann debate -
Thursday, 21 Mar 1968

Vol. 233 No. 7

Control of Exports (Temporary Provisions) Act, 1956 (Continuance) Bill, 1968: Second Stage.

Minister for Labour (Dr. Hillery)

I move that the Bill be now read a Second Time.

The Control of Exports (Temporary Provisions) Act, 1956, which was enacted for a period of three years and has been renewed at the end of each three-year period, will expire on 31st March, 1968.

The purpose of this Bill is to continue the 1956 Act in force until 31st March, 1971. The Act empowers the Minister for Industry and Commerce to prohibit by order the export of industrial goods save under a licence issued by him. Such orders have a life of 12 months only and may be annulled by Resolution of either House of the Oireachtas at any time during this period. Control is at present in force on a range of goods under the Control of Exports Order, 1968 and the Control of Exports (Southern Rhodesia) Order, 1968.

It will be necessary to continue these powers for a further period and to enact the appropriate legislation. Control continues to be necessary for the following purposes:—

(a) to conserve supplies of scarce raw materials (such as scrap metals) for the benefit of home industry,

(b) to ensure that strategic materials, that is arms, ammunition, military and naval stores and so on are not exported from this country to undesirable destinations, or that this country is not used as a base for such trade from elsewhere,

(c) to implement the terms of the Anglo-Irish Free Trade Area Agreement which requires, among other things, control on exports to the United Kingdom of textile goods containing cotton.

(d) to comply with the mandatory resolution adopted by the United Nations Security Council requiring member States to prevent the exportation of certain goods to Southern Rhodesia.

(e) to have immediately available a means of dealing with any emergency which might denude the country of essential materials before corrective legislation could be enacted.

For the reasons mentioned, I commend this Bill to the favourable consideration of Dáil Éireann.

Mr. Cosgrave

Could the Minister indicate whether any further consideration has been given to a matter which I raised recently with the Minister for Industry and Commerce? It concerns the position which has arisen out of the elimination of certain duties on yarns which are used by at least one firm, and possibly others, as a result of a change in the position arising from the abolition of these duties between EFTA countries. The position as I understand it was that up to quite recently manufacturers in this country were in a position to get the synthetic yarns or fibres at comparable prices to British manufacturers. As I understood the reply of the Minister for Industry and Commerce, the present duty will expire in about 18 months under the Anglo-Irish Free Trade Agreement, but because of the recent change in the EFTA duty, British manufacturers are now in a position to get supplies from Swiss sources without payment of any duty. The position arises that manufacturers here have to manufacture from raw materials which bear a duty of approximately eight per cent. Perhaps the Minister could indicate or be able to ascertain the position on it. Up to now a particular firm in my constituency in Dún Laoghaire has been competing successfully on the export market but the recent arrangement under EFTA whereby British manufacturers are in a position to get Swiss yarn without payment of duty means that they can compete on substantially more advantageous conditions than manufacturers here.

The other thing which I would be interested to know is what particular type of goods is restricted under the United Nations Mandatory Resolution?

Mr. Cunningham

I take it this deals with exports rather than what Deputy Cosgrave has been discussing, and in that connection I should like to draw to the Minister's notice some problems that we have in the case of export licences in my constituency.

There are materials especially timber, trees, firewood blocks and scrap metals and in the case of Donegal and especially the northern part of Donegal, where we are so far away from the centres at which these are used or re-used or made into other articles, the cost of transport means that it is uneconomic to have them transported long distances. There is a ready market convenient from the point of view of distance in Northern Ireland. There is a concession given in the case of trees, timber and certain types of firewood blocks but in the case of scrap metals there is no concession. I made representations previously to the Minister for Industry and Commerce that because of the long distance and the ensuing high costs that part of Donegal which has some facilities in the case of timber should have for the same reasons the same licensing facilities in respect of scrap metals such as iron, steel, copper and other non-ferrous metals. If this were granted, we could avoid a pile up of scrap metals of various sorts which are lying about in different garages and other places and there would be a demand for them. As well as the export drive, it would help to clear some of what now are derelict sites or eyesores.

Therefore, I would urge the Minister to reconsider this and in the case of Donegal, or at least the further away part of Donegal, to consider the issuing of licences for the export of the commodities I have mentioned.

Dr. Hillery

I think the matter referred to by Deputy Cosgrave is in fact related to imports and I understand——

Mr. Cosgrave

It is imports of raw materials but it is the export of the manufacture.

Dr. Hillery

My own belief is that if raw material is imported here for re-export in a finished garment, the duty would not be payable and there would be no advantage to the English manufacturer who could get the raw material without duty because if it is coming into this market he would have to pay duty. I gather the Minister is writing to Deputy Cosgrave giving him the full explanation but it does not come under this legislation so I have not got the necessary information here.

The Deputy asked what goods are restricted under the Rhodesia Order. They are arms, ammunition, aircraft, motor vehicles, plant and machinery, mineral oils. The full list is on the order made.

With regard to Deputy Cunningham's question, timber and other goods like sheepskins come under another Act which is a permanent Act and does not have to be renewed. The scrap iron is to protect our own industry as the Deputy knows, and I gather that the price paid in Donegal is the same as any place else. I am sure the Minister will take note of what he has said but whether we can give special terms to Donegal would be another question.

Question put and agreed to.