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Dáil Éireann debate -
Wednesday, 24 Mar 1971

Vol. 252 No. 8

Private Members' Business. - Control of Exports (Temporary Provisions) Act, 1956 (Continuance) Bill, 1971: Second Stage.

I move that the Bill be now read a Second Time.

The Control of Exports (Temporary Provisions) Act, 1956, which was enacted for a period of three years and has been renewed at the end of each three-year period, will expire on 31st March, 1971. The purpose of this Bill is to continue the 1956 Act in force until 31st March, 1974.

The Act empowers the Minister for Industry and Commerce to prohibit by order the export of industrial goods save under a licence issued by him. Such orders have a life of 12 months only and may be annulled by Resolution of either House of the Oireachtas at any time during this period. Control is at present in force on a range of goods under the Control of Exports Order, 1971, and the Control of Exports (Southern Rhodesia) Order, 1970.

It will be necessary to continue these powers for a further period and to enact the appropriate legislation. Control continues to be necessary for the following purposes:

(a) to conserve supplies of scarce raw materials (e.g. scrap metals), for the benefit of home industry;

(b) to ensure that strategic materials are not exported from this country to undesirable destinations or that this country is not used as a base for such trade from elsewhere;

(c) to implement the terms of the Anglo-Irish Free Trade Area Agreement which requires, inter alia, control on exports to the United Kingdom of textile goods containing cotton;

(d) to comply with the mandatory resolution adopted by the United Nations Security Council requiring member States to prevent the exportation of goods to Southern Rhodesia;

(e) to have immediately available a means of dealing with any emergency which might denude the country of essential materials before corrective legislation could be enacted.

For the reasons mentioned I commend this Bill to the favourable consideration of Dáil Éireann.

This is a continuance Bill, of course, and the original Bill was introduced by the late William Norton. The then Opposition raised no objection to the Bill and whether there will be any opposition here will rest on whether or not the Minister is prepared to give full information on the Committee Stage on everything he might desire to do apart from what he has given us on the Second Reading.

The Minister has the power to prohibit the export of any industrial goods and the reasons given are quite valid, that we must conserve certain supplies of raw materials. I would like to deal with the example given by the Minister at subparagraph (a) of the Minister's circulated speech, namely, scrap metals. This has been discussed in the House in relation to the price of scrap metals to Irish Steel Holdings. It was my duty as spokesman for my party on Industry and Commerce to examine that situation and to consider the representations made to me and to others in relation to the suggestion that the price of such scrap metals was inadequate and that there was a closed shop in respect of one supplier.

I came to the conclusion at that time that the assembly and the separation of scrap metals into their various items was a highly expensive operation and that Members of this House would have great difficulty in deciding whether or not the prices given were in fact unjust to small suppliers. However, these provisions are to be used for a different reason, that is, to stop the people sending scrap metals out of the country to provide a better price for themselves rather than send them to the only place to which they could send them here, namely, Irish Steel Holdings.

The question then arises—and I make this point not in any spirit of criticism but in a spirit of mature examination—as to whether or not the assembly of scrap metals perhaps in England and shipping them to Irish Steel Holding might be an operation which would be so costly that it would not be practicable and that we must conserve our supplies of scrap metal, notably scrap motor cars, which is a great source of supply for use by Irish Steel Holdings.

That immediately raises the question, if it is prohibitive to buy scrap metals at the going price around the city of Liverpool and ship them by coaster to Irish Steel Holding in Cork, why is it not prohibitive to assemble them here and ship them to a company in Britain operating on the same basis as Irish Steel Holdings? This is a question that I cannot answer, because I am not qualified to do so. It is a question that somebody with a technical knowledge of the trade would have to answer. If you ask me about drying wheat, handling grain or about various other aspects of industry I would be able to give an opinion here which, whether right or wrong, would be based on a certain amount of experience and knowledge of a particular business. In this matter all I have to go on as spokesman for the Opposition is the Act of 1956, the debates in the bound volumes on that particular Act and a momentary examination of the intentions of the Minister as outlined in his opening remarks.

This matter must be examined clinically and both the Government and the Opposition must consider the representations made to them and make their judgment upon them. They must then come in here on the Committee Stage and state honestly their opinion on this question. Of course this Bill is tied up with the Anglo-Irish Free Trade Area Agreement and must go in 1974. We must decide whether or not it is wise to take the Minister's example and use it as a headline in relation to his activities under the Control of Exports Act which we are continuing.

I note from subparagraph (b) the Minister wants to ensure that strategic materials are not exported from this country to undesirable destinations and that this country is not used as a base for such trade from elsewhere. This is entirely acceptable to anyone. What might or might not be acceptable would be the definition of an undesirable commodity. The State might be at variance with the Government in this respect. My view is that the Government, with all their shortcomings, have been elected by the people. Therefore, if we are operating as a democracy in relation to subparagraph (b), the Government must make that decision. It is for the people to decide whether or not it is a fair decision and at the next election they can cast their vote against the Government if they are not satisfied with their decision and if they consider the matter is serious enough to merit changing their vote, namely, whether they, in respect of any commodity, stopped the export order from here on the basis that it was going to an undesirable location or was a commodity that was undesirable to go to any location, then let the people decide. It is for the Opposition to uncover any action that might attract criticism.

Point (c) is something that must be considered in a more serious manner. At the moment, there is redundancy in our textile trade. There is also rationalisation but as we approach the end of the term of the Anglo-Irish Free Trade Area Agreement, we must accept that rationalisation is necessary. It may not be pleasant but it is necessary. Because of redundancy in the textile trade, I would ask the Minister whether he has considered items in the Anglo-Irish Free Trade Area Agreement, notably the item whereby we can impose tariffs, if we so wish, on 3 per cent of our industrial imports. This is something that might help. Also, a further section where, bilaterally, there could be a change. I would ask the Minister, too, whether it is correct that every section of this agreement, which was signed some years ago by people who were so brilliant, which gave power for adjustment has not been invoked on even one occasion? I speak in no sense of criticism of the various people who signed that agreement. The former Minister for Finance, Deputy Haughey, and the present Minister for Foreign Affairs were involved, as was the Taoiseach. However, while I am not criticising these men in any way, they are not infallible. They did what they considered was best at the time, but if it is true that there are sections of that agreement which give opportunity for bilateral or unilateral adjustment and if it is proved that the estimates made were incorrect, should these not have been used by the Government, particularly in our situation as a small trading nation as far as industrial goods are concerned while Britain is such a large trading nation, and when we are in the position of being one of Britain's best customers? Therefore, I wonder about the automatic application of a section of that agreement through the continuance of this particular piece of legislation, without considering whether the provisions signed on the first occasion should not have been varied by the other sections of the agreement that permit of unilateral or bilateral adjustment.

We subscribe to the United Nations and, therefore, I presume we must take our policy from them and decide not to export goods to Southern Rhodesia. I have no fault to find with that. There may be people in the House who have but it is my opinion that, as the world becomes smaller, we must involve ourselves and commit ourselves. Indeed, we have already done this by our various trading, economic, social and other associations with the UN as well as the EEC, by the Anglo-Irish Free Trade Area Agreement, the European Free Trade Association and other international agreements. Therefore, I suggest that point 5 (d) is one that we must accept because since we have subscribed to the mandatory resolution of the United Nations Security Council, we must act accordingly. I should not like to see this country shirking its international obligations.

Point 5 (e) is an interesting one. This is that we are:

to have immediately available a means of dealing with any emergency which might denude the country of essential materials before corrective legislation could be enacted.

That was a wise provision. I suppose it is not really a provision but merely indicates what powers are in the Control of Exports (Temporary Provisions) Act of 1956 which it is proposed here not to amend but merely to continue until 1974. We might have had the Sheiks of Araby denying us oil during the last few weeks and, in such a situation, it would be imperative that the Government would retain all the oil that is in the country, also, that our stock of oil would be directed towards essential services.

This Act does not deal with the direction of essential commodities, such as oil, towards essential services but, of course, there is such legislation on the Statute Book. However, the position is that the Government of 1956—I note that the Bill was acually introduced in 1955—did not find an Opposition at that time that was critical of the Bill. Rather, they found an Opposition that let the Bill through without amendment. However, we are living in different times; we are living in the time of the Anglo-Irish Free Trade Area Agreement and surely there should have been changes in certain of the Articles of that Agreement? However, I mention this merely in passing.

As spokesman for Industry and Commerce for the main Opposition Party I want to say that we have examined the argument in relation to scrap metals and have found that there is no great dishonesty or great advantage resulting to anybody in this regard and that the assembly of scrap metal and the taking of one type of scrap metal from, say, a wrecked car is a highly expensive operation. However, it seems to me that if we are to regulate the supply of scrap metal to our one and only large steel foundry and if we are then to place the supply of that metal in the hands of one agent and if we are to follow that up by invoking the powers of the Control of Exports (Temporary Provisions) Act, 1956, and if the Minister indicates that scrap metal is one of the commodities that will not be allowed to be exported surely then the question arises as to whether scrap metals are becoming available to one of our nationalised industries or semi-State industries at a price less than world price. I am not quibbling with that. I am not even saying it is wrong.

Recently in a debate here relating to Irish Steel Holdings I said that the Fine Gael Party were 100 per cent behind the full employment of every worker in Irish Steel Holdings and would take legislative action if the Government wished or would, in fact, instigate legislative action if we felt it necessary to defend the last job there. The example given by the Minister poses that question and I should like to have it answered on Committee Stage, if not tonight. If it can be answered in a satisfactory manner tonight, I see no reason why this cannot have the same passage through the House as it had in 1956.

I agree completely that we cannot have this country used as a point of transfer of undesirable goods or goods to undesirable sources. That would fall within the ambit of our international obligations anyway. I knew when I read this Continuance Bill that the phasing out of this legislation in 1974 is a result of the Anglo-Irish Free Trade Area Agreement. I want to know now if any other legislation within the ambit of that agreement is contemplated by the Government in order to provide whatever protection is humanly possible within that agreement for existing jobs. I am not asking too much and I am not being too difficult, I am not being querulous when I ask for these undertakings, because we are in an era of redundancies.

I met a businessman today who said to me that we are at the top of the league again, that we have lost 1,000,000 work days through strikes. I said: "Yes. It is dreadful. I hope it will not be the same this year." He said: "What I fear is that this year, 1971, will not be the year of strikes but the year of redundancies." If one were to take the period from 1st January until almost the end of March of this year as a headline in this regard, one could say that it has been the quarter of redundancies as opposed to any other quarter of any other year, perhaps, since the period when the Government got us out in 1957 when the international difficulties of the Suez crisis and the Korean War were used for a nefarious purpose, not beneath the Government opposite, who, like a certain lady in a play, are always prepared to stoop to conquer.

I agree with paragraphs (d) and (e). I want undertakings, and I want assurances, and I want explanations.

It would be interesting to know which other goods are covered by paragraph (a). I know that scrap metal is referred to. I have not to hand the Control of Exports Order, 1971, which gives other examples of products or materials specified under paragraph (a). With regard to scrap metal I suppose there is a case if the only works in the country which utilise it can be assisted in any way by it. As Deputy Donegan said, it may be true that a higher price could be got abroad for this material but if any advantage can accrue to our own home industry in this area, paragraph (a) is necessary and this prohibition on the export of this material is necessary.

I am a bit curious about exactly which strategic materials are mentioned under paragraph (b) : to ensure that strategic materials are not exported from this country to undesirable destinations or that this country is not used as a base for such trade from elsewhere. What exactly do we mean by "strategic materials"? I am curious about what strategic materials are in the country at the present time. Is this simply the terminology of the original Act, or are any goods mentioned, or is it just a bit of necessary legalistic filling-in in the Act? I should like the Minister to tell me what strategic materials may be in the official mind under this heading.

Under paragraph (c) we behave ourselves and say that we will implement the terms of the Anglo-Irish Free Trade Area Agreement which requires, inter alia, control on exports to the United Kingdom of textile goods containing cotton. We are probably the best-behaved nation in the matter of living up to our obligations under international trading charters and so on. We must be a byname by now in the current EEC negotiations as the most moral state in Europe in the matter of standing by the letter of the law in various agreements.

Hear, hear.

To some extent I think some of our people confuse the clauses of the Treaty of Rome with the clauses of the Nicene Creed. Here again we continue the same possibly admirable—I do not know—conduct in paragraph (c) and we carry out the terms of the agreement.

I know this is the review year for the agreement. On all sides the effects of that agreement are now considered to be disastrous for certain large sections of Irish industry. While carrying out this admirable record of being the good boys of Europe in relation to the way we keep international agreements, we might decide to look after our own interests also whilst preserving this image abroad. Our own interests call for a review of the agreement at the earliest opportunity. We need a review of the manner in which it is affecting the textile industry and the footwear industry.

This point gives me the opportunity to remind the Minister of the necessity to consider which sections of Irish industry have been hardest hit by some parts of the agreement, and to consider the possibility of our not carrying out part of the agreement in reducing the tariffs by the necessary cuts. The urgent situation facing a great deal of Irish industry calls for this. It is no doctrinaire claim from our party when I make this suggestion because the Confederation of Irish Industries, in a recent pamphlet on the matter, expressed alarm at the extent to which the home market has been taken over by industrial competition from Britain. At this moment the effect of the agreement is weakening our competitive position vis-à-vis whatever eventuates in the EEC. So, it is sound common sense not to be so committed to the free trade concept that we go ahead under all the automatic provisions of the agreement. We should be selfish at this stage and look after our own interests.

This Government and this State have an obligation to look after our own interests. The British or any other group abroad will not do it for us. If we wish to preserve this Simon Pure approach to international agreements as they affect our trade let us do that but, at the same time, let us adopt Bernard Shaw's suggestion and trust in God but keep our powder dry. We should attach this type of attitude towards all agreements that affect our vital interests. At this moment our interests are being mauled by virtue of the Anglo-Irish Free Trade Area Agreement. It was a disastrous agreement and it is now time to review it. We should not be in the least bit apologetic about reviewing the provisions which are harming us at present.

In paragraph (d) we agree to comply with the mandatory resolutions adopted by the United Nations Security Council requiring member States to prevent the exportation of goods to Southern Rhodesia. Of course we support this. I regret that there is no section here that asks us to comply with a similar United Nations resolution on trade with South Africa—an even bigger sinner in the matter of racist crime than Southern Rhodesia.

I realise that this is a country that must search for trade wherever it can find it but the regime which exists in South Africa is one that is unique in the comity of nations, one which has elevated to a morality within that State the despicable doctrine of race hatred and race inferiority. As we know, Europe took part in a second world war to defeat the ideology of racial superiority and yet this State in Africa supports this concept in 1971. It is a pity that this State here, which has been so loud in its profession of the necessity for law and order between nations, has not cut off what little trade we have with South Africa, boycotted trade with that country.

Here, of course, we are merely following what the British are doing because of their struggle with the government of Rhodesia. We are merely carrying out what the British are doing in relation to Southern Rhodesia and presumably if tomorrow morning the British changed their approach we would follow suit. It is time that in this area, at least, we acted independently of others if, in fact, we are serious about our dislike of these racist policies.

Paragraph 5 (e) reads:

to have immediately available a means of dealing with any emergency which might denude the country of essential materials before corrective legislation could be enacted.

I get the impression that in this Bill there is a great deal of terminology which does not refer to any real things. I may be wrong in this but I would be interested if the Minister could tell me whether 5 (e) refers to any known material and whether, in fact, we have these "stategic materials" and what exactly, in the Minister's view, is an undesirable destination in the minds of the Government of this country at this time. I would imagine there are certain countries in Europe at present who consider this country an undesirable destination for some strategic materials which have been imported into this country over the past year or two. Perhaps the Minister would give us some information under those headings?

I should like to welcome the manner in which the Bill has been received by the House. It appears to be fully accepted that it is desirable to continue in force the Control of Exports (Temporary Provisions) Act initially introduced in 1956. Before I go any further I should like to clear up a misconception which Deputy Donegan appeared to have in relation to the fact that the Bill expires on 31st March, 1974. This has nothing to do with the Anglo-Irish Free Trade Area Agreement and it has nothing to do with our entry into the EEC. This Bill, originally introduced in 1956, is a three-year piece of legislation which has, every three years, been reintroduced and re-enacted.

It is just a coincidence?

Yes. It is just that 31st March, 1974, is the end of the three-year period beginning on 1st April, 1971.

May I ask whether the Anglo-Irish Free Trade Area Agreement will preclude the Minister from introducing it in 1974?

Not the Bill in itself.

The provisions of the Bill?

It can interfere with certain orders that the Minister for Industry and Commerce may make under the Bill.

This is a permissive piece of legislation.

This is permissive legislation.

So the Act falls when the order is made?

The headings in paragraph (5) to which Deputy Donegan and Deputy O'Leary have been referring deal with the various orders of which there are concrete examples in existence. Orders have been made under this type of heading since the Act was introduced in 1956. These are examples of the manner in which this enabling legislation has been used by successive Ministers for Industry and Commerce.

That brings me to Deputy Donegan's suggestion that if I, as Minister, am not able to make him reasonably happy about the control of the export of scrap at this Stage or during Committee Stage, I could have time to look into it and we could deal with it at a later Stage.

If the Minister can satisfy us, my view would be to give him all Stages tonight.

I do not want to ask the Deputy to commit himself on this but in view of the fact that the effectiveness of the present piece of legislation ceases on 31st March, which is towards the end of next week, I want to get the Bill through both Houses in the meantime and I cannot get it to the Seanad until next week.

So the Minister needs it tonight?

That is fair.

Deputy Donegan made a point, and Deputy O'Leary followed it up, regarding the danger that the prevention of the export of scrap creates a difficult situation where Irish Steel Holdings may be taking advantage to buy scrap at a limited price. Deputy Donegan suggested that the cost of assembling and collecting scrap is quite an expensive business and while it seems prohibitive to collect and assemble scrap in Liverpool and send it to Cork that, on the other hand, with the Minister for Industry and Commerce having to have legislation to prevent its export it followed——

It might follow.

——that there would be an outside market for it and therefore a better price could be got abroad and the price being paid by Irish Steel Holdings was not sufficient. I do not know but I do not think this case has been made. In fact, there has been a degree of criticism in recent years in connection with the various agencies for collection and the prices payable for various volumes or tonnages. It may be helpful for me to say that this has been raised fairly regularly in the House over the last three or four years. The last time it was raised by way of parliamentary question I made a reply similar to that made by my predecessor to the question suggesting that if the allegations were proper that the case should be referred to the Fair Trade Commission for examination. This has now happened. The people making the complaint have submitted the case to the Fair Trade Commission which is pretty deeply involved in an inquiry at present which will take some time but I understand that the Fair Trade Commission will give its attention to this problem within a reasonable time and I would hope that it will clear up this issue. I have no record of having positive complaints from collectors of scrap about the actual price paid except the complaint referred to, the differential in the prices paid for various volumes, but it was claimed that with the volume which only one man could supply the price was unsatisfactory. I expect the Fair Trade Commission will be investigating and should resolve this knotty problem which has been worrying a number of people for a considerable time. I do not think it has ever been contended that Irish Steel Holdings were not paying, across the board, sufficient money for scrap. Scrap springs to mind most quickly and that is why it is specifically mentioned as the top example; it is the one of which we are most aware.

Deputy O'Leary was anxious to know what strategic goods were. There is a pretty wide range of strategic goods including arms and ammunition, fissionable material——

They come the other way.

Yes, but if you read this fully you will see that is a question of ensuring that strategic materials are not exported from this country or that this country is not used as a base for such trade from elsewhere.

We in our Constitution claim jurisdiction.

Yes, I accept that but——

Is the Minister referring to the de facto position?

In this case it is a matter of sending. In relation to heading D the Deputy mentioned that he noticed that South Africa was not specifically included. Heading B would cover that aspect because in fact this country is implementing the United Nations Security Council Resolutions of 1963 and 1964 calling on all member countries to prohibit the sale and shipment of arms and military supplies to South Africa. Heading B would cover that type of situation. That is what is covered by "strategic goods" and "undesirable destinations".

The terms of the Anglo-Irish Free Trade Area Agreement were mentioned from the point of view of control of exports. Both Deputies spoke under this heading in relation to imports and then moved to the overall suggestion that the Government were too gentlemanly in honouring their commitments and obligations——

God forgive us for that.

In fairness to the Deputy he did not criticise us on the basis of not honouring our commitments. Deputy O'Leary did. He did not complain about us not honouring our commitments. Deputy O'Leary suggested perhaps we could adopt that tactic but Deputy Donegan said we should fight our battles, take the matter to the meeting place, argue it out and try to make this half-term arrangement. Although it does not arise specifically on this Bill, at present my Department is engaged in preparing for those talks and drawing up a list of the most sensitive or most affected industries under that agreement with a view to the talks that are now due. The overall picture in regard to our industries and the question of the 3 per cent recourse that we have is now being teased out in my Department. I hope we can get those talks going within a reasonable time.

Will the Minister be accompanied by other Ministers at the review talks in London?

Normally I would expect so but, as I said, we are preparing our documents in this regard and no arrangement has been made about the actual meeting at this stage. It would be wrong for me to precommit any of my colleagues or myself in regard to it.

But one could assume it would take the same form as previous meetings?

Off the cuff, I would assume this. This relates specifically to industry. If there are joint talks in relation to agriculture and so on, Finance does come into it and so one could assume——

The Minister would accept that a major review is called for this year?

In fact, the application of the Anglo-Irish Free Trade Area Agreement is pretty much under continuous review but there is this provision whereby this year we expect, and arrangements are being made for, a major review. I am at present pressing forward with the arrangements but I still do not accept—we had an example of this at Question Time today—many of the allegations being made by the Opposition in regard to the effects of the Free Trade Area Agreement.

Has the Minister sought a meeting with the trade unions?

Has he seen the statement of the President of the Congress of Irish Trade Unions?

I have not sought any meeting with the trade unions. I met some members of Congress some time ago and I gave them an undertaking that I would have consultations with them before I engaged in those discussions and I intend honouring my commitment in that regard, as I almost invariably do.

Before the talks in London the Minister will discuss these matters with the trade unions?

What I propose to do in this regard is to meet members of Congress with the idea of getting their views. It would help me in formulating my plans.

I suppose the Confederation of Irish Industries will be involved in discussions with the Minister also at that time?

When the Deputy says involved in those talks, at this stage I am not precommitted. We are having a great Committee Stage debate, actually.

Are we taking the Committee Stage this evening?

I hope so.

Acting Chairman

Then perhaps it would be as well if Deputies deferred these questions until the Committee Stage debate begins.

I just want to make my point about the Confederation of Irish Industries. The Minister would see a point in bringing them into the talks also?

Yes. There is no reason why I should not talk to the CII and to Congress.

It appears that on section 1 we can have a conversation with the Minister rather than a single speech on these points.

Acting Chairman

Not exactly a conversation but you may have a discussion.

Of course we will address our remarks to the Chair. But we can have a discussion on section I and I think we should allow the Minister to finish his speech.

I have not far to go. I have dealt with section D as regards complying with the mandatory resolution adopted by the United Nations and I am pleased that both spokesmen on behalf of the two Opposition parties fully agree with that. As Deputy Donegan says, what is covered under heading E is the enabling legislation which enables the Minister to deal with a particular problem at any time. He himself gave an example of that type of situation. I am pleased at the House's reaction to this Bill which is simply a Bill continuing something that was originally enacted some time ago.

Question put and agreed to.
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