asked the Taoiseach when it is proposed to have further discussions with the British Government on the Anglo-Irish Free Trade Agreement, more especially in the light of this country's worsening trade balance with that country.
2.
Ceisteanna—Questions. Oral Answers. - Adverse Trade Balance.
1.
asked the Taoiseach if, in view of the proportions of the adverse trade balance with Britain, there are any proposals for a re-negotitation of the Anglo-Irish Free Trade Agreement.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 1 and 2 together.
Discussions at official level on the working of the Anglo-Irish Free Trade Area Agreement are to take place shortly and are to be followed by a meeting at ministerial level. The precise dates for these meetings have not yet been fixed. The review of the working of the agreement, which will not be a re-negotiation of it, will take account of the trade in both directions.
Do I understand there will be no re-negotiation of the agreement?
It will be a review, as was provided for in the agreement itself.
Does the Taoiseach not agree that the situation is very serious? There is an adverse trade balance of £25 million already this year. There should be more than a revision. Britain has the right of free access to this country while we have this continuing penalty under the import levy scheme. Does the Taoiseach not agree, in all reasonableness, that the agreement is working against us at the present time?
I do not accept that. Britain has not yet got free access to this country for all her goods. That will not happen until the agreement runs until 1975. The Deputy will note, if he examines the figures, that there has been a significant increase in the import of capital goods, which is a good sign in itself.
In the first year it was £8 million in favour of Britain; in the next year it was £16 million in favour of Britain and now, this year, it is £25 million in favour of Britain for the first six months. Does the Taoiseach not consider these figures significant?
I do and it is for the purpose of examining figures like those that the review provisions were put into the agreement.
Is it still the intention to reduce tariffs by a further ten per cent next January, and if it is, is the Taoiseach aware of the harm this will do to our industries and to the people employed in them?
We have no intention of reducing tariffs by ten per cent next January.
Could the Taoiseach give us any idea why we have such a high adverse trade balance with Britain in view of the fact that the Anglo-Irish Free Trade Area Agreement is supposed to be operating fully?
I have given one indication—the increase in the import of capital goods.
Would the Taoiseach say that accounts for the major proportion of the adverse balance?
Not the major proportion, but it is a significant factor.
But certainly not the major one?
3.
asked the Taoiseach the adverse trade balance for the first nine months of 1969; and how it compares with 1968 and 1967.
The import excess for the first nine months of 1969 was £164.2 million. Figures for the corresponding periods of 1968 and 1967 were £116.7 million and £83.3 million respectively.
Is the Parliamentary Secretary aware of the growing alarm felt by the Central Bank, the chambers of commerce and the editors of national and provincial newspapers at the deterioration in our adverse trade balance and at the failure of the Government to take any action so far to rectify it? Is it the intention of the Government to do nothing about this in the immediate future?
This whole matter was dealt with fully by the Minister for Finance in questions Nos. 169 to 173 on Thursday last and the Government's proposals were set out. I do not propose to go into them again now.
Is the Parliamentary Secretary aware that the ship of State is drifting on to the rocks——
It certainly is not.
——that we are facing a financial crisis, that inflation is rampant and that the Government are taking no action?
There must be more phrases like that in the book, must there not?
Cutting the calves' throats.
Ship of State drifting on to the rocks. What else?
Now that the Government is back in office, having codded the people under the umbrella of false security, are they prepared to let the country drift, without taking any action, or will the Taoiseach and members of the Government face up to their responsibilities?
Yes, as we have always done.
4.
asked the Taoiseach the total value of exports to the Common Market countries for the period 1st January 1969 to 31st July 1969; and the total value of imports from those countries during the same period.
Imports from EEC countries in the period January to July 1969 were valued at £56.2 million and exports at £23.1 million.
5.
asked the Taoiseach the total amount of the adverse trade balance with Germany during the period January to July 1969; and the reason for such imbalance.
In the seven months ended the 31st July, 1969, there was an import excess of £20.7 million on visible trade with the Federal Republic of Germany.
There has been a considerable rise in imports of machinery, iron and steel, textile yarns, thread and fabrics and other essential equipment and raw materials in recent years. At the same time our former very valuable exports of cattle and beef to Germany have virtually disappeared as a result of the European Economic Community import levies.
Is the Parliamentary Secretary aware that the Taoiseach informed me last spring that the Government were taking action to rectify our imbalance of trade with Germany and could he now inform us if they have had any success because the position seems to be going from bad to worse?
Our exports of ores and concentrates have increased very substantially indeed and have offset the loss we suffered in exports of cattle and beef. Nearly all the imports from Germany in the past two years have been capital goods and raw materials.
Will the Parliamentary Secretary state what efforts are being made now, or will be made in the near future, to rectify this imbalance? Apart from cattle exports, is there any other means by which we can try to level off the imbalance?
Most of the import items are items of a non-recurring nature.
Could the Parliamentary Secretary give the figures for the last four or five years?
That is a separate question.