andMr. Begley asked the Minister for Foreign Affairs if grants can be obtained within the EEC from the European Social Fund by private promoters to set up industry where employment is lacking or to modernise old industry that would be affected or wiped out by free trade.
Ceisteanna—Questions. Oral Answers. - Membership of EEC.
7.
Grants such as the Deputies mention are not payable from the European Social Fund.
That is not the question I asked. Could the Parliament of a member country for an undeveloped area such as Leitrim decide to give grants for factories while a member of the EEC? Could this Parliament in Dublin decide to give grants to those areas?
Yes, if we are entitled through our own regional development policies to give incentives and helps. This is possible.
This Parliament could do that?
Yes.
The Government have an internal regional policy?
Yes.
Does that include decentralisation of the Department of Education to Athlone?
That is a separate question.
I should have added to the Deputy's answer that this has not been negotiated as to the extent, area, and so forth of regional policy but there is nothing in the Community to prevent countries having regional policies of their own. The Community have attempted so far to co-ordinate them. Now they have gone a step further and hope to promote them by giving incentives of a community nature to country's policies.
That is a satisfactory reply.
8.
andMr. Begley asked the Minister for Foreign Affairs if regional policies, that do not discriminate against nationals of member countries, can be decided for undeveloped areas by parliaments of member countries rather than by the EEC.
It is the generally accepted view in the Community that, so far as the member States are concerned, regional policy should be a shared concern of the national Governments and the Community itself. It is, therefore, open to member Governments to pursue their own regional policies but action at community level is not excluded.
9.
andMr. Begley asked the Minister for Foreign Affairs how article 226 of the Rome Treaty can be used to help Ireland before or after its accession to the EEC.
We expect that, during our transitional period, a safeguard provision on the lines of Article 226 of the Treaty of Rome will be available to enable appropriate measures to be taken in the case of Irish industries which might experience difficulties. The measures to be taken could include derogations from the rules of the Treaty to the extent and for the periods necessary to achieve the objectives envisaged in the article.
Could the Minister not say why a similar article in the Anglo-Irish Free Trade Area Agreement, namely Article 19, has not been invoked to help industry?
That is a separate question.
It is a similar question.
Are there discussions at the present time going on with regard to Ireland, Article 226 and the protection of industry?
At the present moment we are dealing with the transitional period but it has been subject and will be subject to discussion.
But it is not now?
At the moment the bringing into line of our customs, tariffs and our prices with the common agricultural policy, the transitional period measures, are being discussed. Does the Deputy mean going on at this moment?
Yes.
No, the transitional period, regional policy and fisheries are the subjects which I raised last week.
The Minister must appreciate that we could lose industries in the transitional period and it would be a bit too late then to invoke Article 226.
I am not saying that we will not discuss this until after the transitional period but we cannot discuss all subjects on the same day. Before we enter into any Treaty we will have ensured, as far as we can, that Article 226 will apply here. We will not wait until after the transitional period to look for that kind of protection.
It is only the question of priority and transitional arrangements first. When you get that cleared you will talk about Article 226?
At the present time we are dealing with transitional arrangements. This is the most important thing at the moment. The next important thing would be regional policy when we are members and then matters like the protection to be applied during the transitional period. I expect Article 226 will apply or something of the same terms will apply. We can negotiate it before we enter into the transitional period.
Article 226 applies to the transitional period and the transitional period only.
It applied during their own transitional period. We hope the same measures will apply to our transitional period and will be negotiated. I think the Deputy misunderstands that. He thought that I would not deal with it until the transitional period was over. I meant to say that I would not negotiate this one until the transitional periods have been negotiated. We are doing one subject after the other.
I understand.
10.
andMr. Begley asked the Minister for Foreign Affairs if farmers in the EEC countries pay added value tax on the raw materials of their industry, viz. fertilisers, farm machinery and cereal foods; if so, at what average rate; and if the Government has considered seeking exemption for Irish farmers.
Farmers in EEC countries pay value added tax in cases where such a tax has been introduced in these countries but arrangements exist whereby farmers are compensated for the tax on their inputs by an adjustment on the prices which they receive for their produce.
Is the Minister of opinion that such a correction on the price of produce sold here would hold for our farmers if we went in?
Yes.
In other words, it would be just plus and minus and no loss.
It would be a requirement of the Community that a uniform type of added value tax and a uniform type of compensation would apply. It applies now to five of the six. I think Italy is exempted until January of next year.
It is all very complicated.
It requires particular study.