asked the Minister for Industry and Commerce if the fact that the import of bananas into this country will be subject under EEC regulations to a duty of 20 per cent while those into Britain and Northern Ireland will be exempt from duty will have any adverse effects on this country's import trade; and if he will take steps to ensure that the Irish housewife will continue to have access to quality bananas at reasonable prices.
Ceisteanna—Questions. Oral Answers. - Banana Imports.
66.
The duty on bananas applicable to imports from our present sources of supply will be 8 per cent on 1st January, 1974, and it will increase on a gradual basis annually to 20 per cent on 1st July, 1977. It has been represented to me by the trade that this duty will have adverse effects on the import trade in bananas. I have recently asked them for further information in this connection to help me to decide what action I should take in the matter.
Will the Minister in this matter have regard to the fact that apparently Great Britain will be exempt from this duty when it comes into operation? Could he tell me what situation will obtain after April next in the case of bananas which will go into Great Britain exempt of duty? In the case of those bananas coming into this country will they have EEC duty on them or will they come in free of duty from Great Britain?
No, they will not come in. The basis of the difference between the UK and Ireland is that the UK supplies come from the West Indies, Jamaica and Windward Islands, which are associated territories, whereas, ours come from Equador and Columbia, which are outside. If it were to be a circumstance that they could simply be put into Great Britain from these supply sources that are associated and then put into Ireland without any tariff, this would defeat the object. We are in circumstances where I understand there is some difficulty in total supply from the associated areas. I have conflicting advice from two Irish groups. I am watching the situation consistently and I would be very much guided by their advice in this context but it is my concern that the existing import trade and the jobs, particularly in Cork, that are related to this trade, should be preserved. I am not quite clear at this moment as to what the best mechanism is but the matter is under continuous investigation.
Perhaps the Minister would bear in mind that Great Britain has been successful in procuring this, as it were, free import of bananas from her associated territories, whereas we will incur the duties? When a similar situation happened between France and Germany and when the French were able to get an arrangement about bananas from their associated territories the Germans insisted as a quid pro quo that they would get a duty-free quota and would he consider raising this matter with the EEC that we should be granted a similar type of quota to what the Germans have been able to get vis-á-vis the French?
The suggestion of Deputy Haughey is one of the possibilities. When it was negotiated prior to our accession it was a decision that it was inappropriate that we should seek this special waiver. It is one of the paths open to us. I am inclined to feel that if the matter can be settled in another way it is probably better to do it the other way, but that alternative certainly remains.
Would I be right in assuming that if these bananas are bought by the importers through Britain they will, therefore, be liable to no duty?
There is a problem about certificates of origin and there is also a problem about volume of supply and, of course, we do not wish to have the imports that come through Irish firms through Irish facilities supplanted by the imports that come from the UK. It is for that reason that we want to avoid that situation because that would put out of business Irish people and Irish firms.
I should like to ask the Minister if he is aware that there is a certain monopoly situation existing in the fruit import trade of this country. In effect, is he aware that on occasions it happens that fruit ordered by Irish importers in transit from places like Africa is diverted because the price on the market here has gone down at the particular time?
With respect to the Deputy, I suggest that that is really far from the original question but if he wants to put down a question I will be happy to discuss the matter, which I think is important.