asked the Minister for Industry and Commerce whether he proposes to withdraw quota protection from any industry in addition to the footwear industry; and, if so, what other industries will be affected and when.
Ceisteanna—Questions. Oral Answers. - Withdrawal of Quota Protection.
44.
I would refer the Deputy to the fact, made known following the conclusion of the Anglo-Irish Free Trade Area Agreement, that quantitative import restrictions on hose of silk or artificial silk, brushes, laminated springs and sparking plugs are to be eliminated on 1st July, 1975, and on electric filament lamps on 1st July, 1971. Quantitative import restrictions on motor tyres of British manufacture which were terminated on 1st July, 1966, were reimposed with the agreement of the British Authorities for a period of 18 months ending on 31st December, 1968.
Can the Minister give an assurance that the industries to which he has referred will not be subjected to the same kind of treatment now facing the footwear industry—in other words that they will not be brought ahead of the date mentioned in the agreement?
I think the Deputy is misinformed in regard to the footwear industry. What has happened is that an extra two-year period has been put on the time until they will have to do without the quota. It is not a question of taking away the quota earlier.
Is the Minister aware that many people feel that he is going too far too fast?
I have no doubt that in any industry there would be some people who would feel that about the removal of any protection.
45.
asked the Minister for Industry and Commerce if he is aware of the danger which threatens the Irish footwear industry from the dumping of footwear from Britain and other countries, if the present method of protection is withdrawn; and what steps he proposes to take to deal effectively with such a situation.
If, in the situation envisaged in the question and despite the customs duty which would then operate, imports of "dumped" footwear should occur which would cause or threaten to cause material injury to the Irish footwear industry such imports could be dealt with either under existing legislation or under the provisions of the anti-dumping Bill, at present before the Oireachtas, which I hope will be enacted shortly.
I would, however, refer the Deputy to my reply yesterday to a number of questions regarding the footwear quota. In that reply I indicated, inter alia, that I have decided to initiate further consultations with the British Government.
May I ask the Minister if it is the position that a foreign importer can import into this country an unlimited amount of footwear provided he pays the import duty, without regard to the volume of goods, and without regard to the harm those goods may be doing to the home trade? Is the Minister satisfied that the anti-dumping regulations will be effective in such circumstances?
The anti-dumping legislation applies where there is dumping and irrespective of the volume. It is subject to two tests which I will mention in a moment. One is that the goods are being sold here at a price lower than the price on the home market of the goods, and secondly that the sale of those goods on our market is causing or is likely to cause material injury to the industry here. Consequently the volume of goods comes into the latter part: where it is likely to cause material injury. Subject to that there is no question of the volume of goods being a deciding factor in dumping. The major factor is the question of the price at which the goods are sold, or if they are causing or threatening to cause material injury to the industry here.
May I take it that the position is that the actual dumping takes place and the Minister will be unable to invoke the anti-dumping regulation until this dumping is actually brought to his attention by the appropriate commission or some interested party or parties in the trade concerned? In those circumstances will the Minister not agree that quite an amount of harm, and perhaps irreparable harm, could be done to the industry or to a large segment of it?
I would not agree. The Deputy will be aware of the fact that the anti-dumping legislation also contains a provision for the imposition in certain circumstances of retroactive levies. The existence of this provision is, of course, a very valuable form of insurance so far as we are concerned, and any importer contemplating importing dumped goods runs the risk that this levy might be imposed after he has brought in the goods and paid for them in circumstances in which he would have to pay a substantial sum of money which he could not recover. Therefore, the risk of this would make any importer or potential importer of dumped goods look at the situation very carefully before he embarked on such a project.