Vol. 244 No. 13
andMr. Desmond asked the Minister for Industry and Commerce what tariffs are levied on yarn imported into this country from the People's Republic of China, Israel and Portugal; and if he is aware that the Government's policy in this regard has allowed a firm (name supplied) in Athlone, County Westmeath, to import cheap yarn from those countries, resulting in the closing down of the spinning section of that factory with loss of employment for 320 people.
16.
andMr. Desmond asked the Minister for Industry and Commerce what steps have been taken by him to either (a) attempt to secure employment for those employed, and made redundant by a company (name supplied) in Athlone, County Westmeath or (b) provide alternative industry which would absorb those declared redundant.
17.
andMr. Desmond asked the Minister for Industry and Commerce if he is prepared to consider the proposals of the workers made redundant by a company (name supplied) in Athlone, County Westmeath, who have formed a co-operative, in relation to the manufacture of yarn; and if he is prepared to give them assistance by way of advice or grant or by regulating the importation of cheap, subsidised yarn from the People's Republic of China, Israel and Portugal in order to allow locally produced yarns to compete on a more equal basis.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 15, 16 and 17 together.
The tariff which would apply to imports of cotton yarn from the countries referred to by the Deputies is 48 per cent ad valorem. However, in the case of the People's Republic of China, there is a further restriction inasmuch as the importation of made up textiles including clothing and yarns for sale on the home market from certain low cost producer countries is limited by a special import quota of £100,000 a year which covers all the goods under these headings from all the sixteen countries concerned, including China.
Tariffs are not, of course, levied on goods that are to be processed and re-exported.
In regard to the proposals made by the redundant workers for the reopening of the spinning unit at the factory, I am having these proposals looked at as a preliminary to a meeting with representatives of the workers which I hope to arrange next week.
As to the provision of alternative employment, I had already asked the Industrial Development Authority to give special consideration to the question of attracting industry to Athlone. The authority, in fact, is, at present, examining proposals for the establishment of new industries in the town; one of these is expected to be located in the premises vacated by Shannon Yarns Ltd. I am asking the IDA to make every effort to complete the negotiations as a matter of urgency.
Does it therefore mean that the Minister, his Department and the Government have written off this factory which was established in 1936? I think the Minister said there was a 48 per cent ad valorem duty on imports from the People's Republic of China as if to suggest that this was the most he could do. If it means a loss of employment to people in Athlone why cannot it be 100 per cent?
The Deputy did not pay full attention to what I said. It is true I said there was an ad valorem duty of 48 per cent but I also said there was a special import quota which covers the kind of things he is talking about and a lot of others and that that quota is £100,000 for a full year. It covers all imports of that nature from 16 countries including China.
Would the Minister say very briefly why this firm had to close down?
That is another story. I would not like the idea to be spread around——
It is an important story.
——that it was due to imports of cheap materials from China because it was not. In fact, virtually none of the yarn used here was from China, that is in relation to the home market. Of course, in regard to exports we do not restrict in any way because we would drive a lot of factories out of business if we did. The difficulty here arises because of the nature of the business and the technological changes. The Deputy will, no doubt, be aware that there are quite a number of similar industries which have already closed down in Britain in the last few years.
That is no consolation to us.
No, but if the Deputy is asking what is the reason for it I am telling him there are changes in the structure of the industry in the technological developments which are having this effect in this whole industry.
Would the Minister be prepared to say that this yarn which is imported is heavily subsidised by the countries of origin?
This could well be, but it is not a factor.
Does the Minister know or not? It is all right to say "this could well be".
I do not know what the Republic of China does in the way of subsidy.
The Minister could easily find out.
I will not say what I was going to say. What does the Deputy mean? This is not of any concern. It is a red herring.
You boys should know what a red herring is.
The import of these low-cost yarns to which the Deputy refers is involved in our exports, not in sale on the home market. I do not think the Deputy is suggesting that we ought to restrict our exporters so as to prevent them from getting their raw materials at the lowest possible level of cost. If the Deputy is suggesting that, it is another matter. I do not think he is suggesting that.
I was not suggesting that the imports of primary products should be the subject of tariffs on re-export. Does the Minister not admit that a serious situation could arise in that setting? I am sure the Minister is aware that £4,000 of redundancy money has been lodged in good faith by those workers in a local fund, together with local subscriptions of £9,000 in an effort to get this shed reopened? Would the Minister not go to Athlone and meet the workers and management concerned? He should not have any difficulty in doing this. Would the Minister not endeavour to become directly involved in view of the fact that there are 360 people out of work? There are 120 married men out of work in Athlone at the moment.
I have been in much closer touch with this situation than the Deputy has. I have also said that I hope to meet representatives of the workers in connection with this proposal next week.
Question No. 18 postponed.
