asked the Minister for Industry and Commerce if he will comment on the disappointing year for Irish Steel consequent on market conditions; and the prognostication for market conditions in steel production and raw material availability when this country joins the EEC.
Ceisteanna—Questions. Oral Answers. - Irish Steel Industry.
45.
The net profit before taxation for Irish Steel Holdings Ltd., was £174,997 for the year ended 30th June, 1972, compared with £361,567 for the year ended 30th June, 1971.
This unsatisfactory result has been attributed to a fall in the domestic demand for steel reinforcing bars and sections and to the inevitable disturbance to production due to the installation of new plant. In addition, the company, like others, were affected by increased labour costs. I am hopeful that, when the new plant is in full production the company's financial results will improve significantly.
With regard to market conditions in the European Communities, I am satisfied that the company's present development and future plans for expansion will enable it to continue to hold its share of the home market and to increase its exports.
Under the Treaty of Accession to the European Communities Ireland may retain restrictions on the export of waste scrap metal of iron and steel until the end of 1977. Consequent on its expansion programme, however, the company will also require to import a substantial tonnage of scrap. No difficulty is foreseen in obtaining these supplies or other raw materials, for example, pig iron and ferromanganese, when this country joins the EEC.