asked the Minister for Industry and Commerce if he is aware of the grave concern felt throughout the country because of the number of factories closing and of reports that many more may close; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Factory Closures.
51.
Recent factory closures have been due to various reasons. Certain sectors of industry have been affected adversely by such factors as international market depressions, cost inflation and competition from alternative products and have been forced to cut back production or, in extreme cases, to close down. The Industrial Development Authority are making every effort to offset the effects of these closures by assisting the expansion of existing factories and the opening of new ones.
As I said in reply to a question on 3rd March, 1971, I am fully conscious of the need to keep to a minimum any disruption of employment and in a number of cases, where there has been difficulty, I arranged for my Department to make direct contact with the firms concerned with a view to giving them every possible assistance.
Has the Minister had any approaches from industrialists who told him that the Anglo-Irish Free Trade Area Agreement is responsible for loss of employment in these factories?
No.
I do not believe it. Have Springs Limited, Wexford, approached the Minister's Department?
Yes.
Did they mention that the Free Trade Area Agreement——
I cannot positively say that they did or did not.
They did.
Over 4,000 people have lost jobs recently and 70,000 are unemployed and it is rumoured that 40 or 50 more industries may go bankrupt within the next few months and surely the Minister is aware that the Free Trade Area Agreement is having a bad effect on many of our factories? That agreement is to be reviewed this year and is it the intention of the Minister and the Government further to reduce our tariffs because if that is done they will close dozens more of factories?
The Taoiseach has dealt adequately with that type of repetitious supplementary. As a matter of fact he had the opportunity of dealing with it twice yesterday because the Deputy asked the same type of question twice yesterday. In relation to factories closing down, the textile industry is the industry which has been most seriously affected. Factories which have closed within the last six months were all factories set up with a view to exporting only and therefore the agreement would have no effect on the outcome.
Why not?
It is alleged that this is happening because of the removal of tariffs and the influx of goods. I am surprised that the Deputy does not understand this——
You must have a home market before you export.
(Interruptions.)
I am wasting my time.
Surely the Minister is aware that the Government's inflationary policy is responsible for making much of what we——
For world inflation?
The Minister is aware that the inflationery policy of the Government is responsible for making it difficult to export competitively. The Government cannot blame others for their own sins and failures. What has happened to the Third Programme for Economic Expansion? Has it now become the programme for economic contraction?
Could the Minister indicate the number of factories cutting back on their activities at the present time? Our information nationally and locally is that a number of factories are cutting back and may eventually close down. Could he say, first of all, what the number is and, secondly, what help is given before the shutters are put up, because once the shutters are put up it is very hard to take them down? Everybody appreciates the problem it would be for the people working in those factories, for shopkeepers and others who gain from industrial development in the district. I would like to see preventative measures taken rather than trying to cure——
My Department is constantly engaged on what the Deputy describes as preventative measures, the prevention, if you like, of closures affecting industry. However, as long as you have industrial development and changes in industrial methods you will have closures. The question is to restrict the closures to the minimum.
Has the Minister any idea as to the number?
I cannot give the Deputy that information. The question asked was in relation to closures as such.
The Minister is aware that the only advice people will get from his Department is that they go away and rationalise without being told how this can be done?
That is not true.
Is the Minister aware that there are 1,100 skilled people redundant in the first two months of 1971 compared with 530 in the first two months of 1970?
Arising out of the reply which the Minister gave to Deputy Murphy, could he explain why he allowed 500,000 pairs of shoes to be imported into this country free of duty?
That is a separate question. Specific cases cannot be discussed.
Does he not agree that such a permit puts the jobs of workers in the shoe industry in peril?
(Interruptions.)
The remaining questions will appear on tomorrow's Order Paper.
I give notice that with your permission I wish to raise the subject matter of the recent acquisition by the Minister for Industry and Commerce of the mineral rights at Nevinstown, County Meath.
The Chair will communicate with the Deputy.