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Dáil Éireann debate -
Wednesday, 27 Oct 1971

Vol. 256 No. 3

Ceisteanna—Questions. Oral Answers. - Anglo-Irish Trade Agreement.

12.

asked the Taoiseach if, in view of the disastrous effects on this country's employment situation resulting from the current Anglo-Irish Free Trade Area Agreement, he will take steps to renegotiate this agreement so that employment and production in those sectors of the Irish economy most affected can be safeguarded.

I do not accept the Deputy's statement about the employment situation. The increase in unemployment is due mainly to factors other than the operation of the Anglo-Irish Free Trade Area Agreement. In fact, there has recently been a considerable improvement in our trade balance with Britain. Safeguards are provided in the agreement for dealing with difficulties in particular sectors of industry and some of these have in fact been invoked.

Would the Taoiseach say if there was any review of the Anglo-Irish Free Trade Agreement during the last three or four months?

Yes, there is a review.

Has it been completed yet?

I understand a question is down to the Minister for Industry and Commerce on that subject.

The Taoiseach is the boss.

I do not want to hog his share of the cake.

But you know what they are at?

I do. If the Deputy had put down the question to me I would have answered it, possibly, but there is a question down to the Minister for Industry and Commerce and he can answer it fully.

The Taoiseach denies that the unemployment and redundancies are a result of the free trade agreement?

As I said in my reply, the increase is due mainly to factors other than the operation of this agreement.

Could the Taoiseach say what these other factors are?

Yes. There is a decline in world trade; especially in the textile business.

That was to be expected.

Does the Deputy think we can immunise ourselves against a decline in world trade? If that is the kind of economics he is teaching in UCD it is no wonder they are going to close it down. There is a decline in world trade and more specifically in the textile industry, which affects us. American trade is sluggish at present. The Americans have taken action against imports and the effect of the sluggish trade there and the action they have taken operate against some of our industries which are orientated towards exporting to the United States. There is also somewhat of a depression in the United Kingdom market. Unemployment figures in the UK have been rising to almost 1,000,000 at present. All these factors, as well as the fact that increased costs have made many of our industries less competitive in world markets, contribute.

The Taoiseach said there is considerable improvement in our trade balance with Britain. Is that in comparison with the first two years of the operation of the free trade agreement?

I am comparing this year with last.

Can the Taoiseach compare the first two years of the Anglo-Irish Free Trade Area Agreement?

The Deputy would have to ask a special question.

If there has been an improvement in our trade balance with the UK why is that not reflected in employment?

I should imagine we are improving our techniques and possibly getting more work per man-hour. I think that is necessary in any event to survive in the modern world.

Is it not a fact that the unemployment rate is shocking?

It is a rate which I think we shall tackle very effectively. It is unfortunately higher than we want but such is the position in most other countries also.

Does the Taoiseach believe it will improve if we enter the EEC?

Yes, certainly.

Is the Taoiseach satisfied that the Government have taken sufficient steps against dumping here when he sees that in Britain they are taking steps against fertilisers from here because 85 people lost their jobs? Are the Government taking all adequate steps against unnecessary dumping?

And the importation, say, of furniture?

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