asked the Minister for Industry and Commerce if he is aware that the distributive trade of the country is becoming more and more foreign controlled, resulting in a vast increase in the amount of foreign goods on sale; and if he will take steps to counteract this dangerous trend which constitutes a serious threat to home producers and to employment.
Ceisteanna — Questions. Oral Answers. - Control of Distributive Trade.
74.
It is important to retain a sense of proportion when looking at the question of foreign control in the distributive sector. The most authoritative estimate we have is that of the NIEC, which estimated in January, 1968, that some 6 per cent of retail trade was handled by firms owned and controlled outside the country. Such information as is available to me suggests that, of total sales, the proportion of Irish goods sold by foreign-owned stores is not much lower than the proportion sold by Irish-owned stores. The present degree of foreign ownership, therefore, can hardly be regarded as constituting a serious threat to home producers and to employment. Nevertheless, I am conscious of the possible dangers to our economy inherent in a concentration of foreign ownership in certain trades in certain areas and the possibility that a relatively few takeovers in some sectors might radically alter the position and in the possibility that, with falling levels of protection, the buying policies of foreign-owned concerns may be changed to our detriment. Therefore, as I have previously announced, I am keeping the position under review, and will be prepared to take action swiftly if at any time it appears to be called for. The circumstances calling for action, and international and other constraints on action, which may vary from time to time, have to be taken into account and I would not wish at this stage to say what form the corrective measures are likely to take.
Would the Minister not agree that the huge influx of foreign consumer goods into the supermarkets and shops is having a big effect on the balance of payments deficit?
It is obviously having some effect but the extent of it is nothing like what I think is commonly believed at this stage.
Has the Minister ever, out of pure curiosity, gone through any supermarket in this city and looked to see if he could get one item of Irish manufacture on sale?
Yes. I had a survey carried out by my Department with this in mind recently and the result is nothing like what the Deputy thinks it is.
I am afraid they must have gone to the wrong supermarket. I would like to get the name of it.
They went to a number of them.
75.
asked the Minister for Industry and Commerce whether he proposes to take steps to assist Irish retail firms threatened with competition from externally-owned supermarket groups to meet this competition.
There is a variety of State aids and incentives of which Irish distributors are availing themselves in order to become more efficient and competitive in business. Under the scheme of Technical Assistance Grants operated by my Department, grants of up to 50 per cent of the cost are made available towards providing consultancy services for distributors on a collective basis and towards visits abroad by representatives of the distributive trades to study aspects of distribution. Grants of the same proportion are available from An Chomhairle Oiliúna towards the attendance of managerial and supervisory personnel at training courses and seminars. The Industrial Credit Company provides loans to suitable applicants for the acquisition, extension and renovation of business premises. The Irish National Productivity Committee operates an advisory service for the distributive trades and organises and promotes training courses for shop assistants and apprentices.
While the smaller trader is helped in these ways to improve the efficiency and competitiveness of his operations, he is also entitled to expect reasonable protection against possible misuse of the economic power of dominant enterprises, with large financial resources, whether Irish or foreign controlled, leading to unfair trading practices. Legislation to amend the Restrictive Trade Practices Act, which I intend to introduce during the next session of the Dáil, contains provisions which, I trust, will improve the machinery of the Fair Trade Commission in dealing with complaints of unfair trading practices.