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Dáil Éireann debate -
Thursday, 14 Nov 1974

Vol. 275 No. 9

Ceisteanna—Questions. Oral Answers. - Footwear Industry.

24.

asked the Minister for Industry and Commerce if he is aware that boots and shoes manufactured outside of the EEC are being imported into Ireland through other EEC countries; and the steps he proposes to take to eliminate this practice and assist the Irish boot and shoe manufacturing trade.

25.

asked the Minister for Industry and Commerce if he is aware of the grave concern of employees in a boot and shoe manufacturing firm (name supplied) in Killarney, County Kerry, as regards the future of this factory and the boot and shoe industry as a whole in this country; and the steps, if any, he intends to take to protect and improve this manufacturing trade in Ireland.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 24 and 25 together.

There is nothing to prevent footwear manufactured outside the EEC being imported into Ireland through EEC countries provided the appropriate customs duties are paid. This country's duties on imported footwear range from per cent in the case of United Kingdom products to 40.4 per cent on footwear from countries outside the EEC.

In the case of imports of third country footwear through the UK and Denmark there would be a minimum duty of 32.4 per cent and in some cases more, so that in effect a significant portion of such imports would attract a greater duty than if they were imported direct. In the case of any such imports through other member states the products would be subject to the common external tariff from 8 per cent to 20 per cent, together with an Irish duty of 32.4 per cent. The net effect would be that the combined duties would be as great as, or greater than, the duties applicable to direct imports from these countries.

I am aware of the concern of the employees about the future of the firm mentioned. The footwear industry, in common with certain other sectors of industry, is facing difficulties at present for a number of reasons, apart from the growth in imports. The COIP survey report referred to such difficulties and suggested a number of measures in the fields of management, training, distribution and design which the industry should take to strengthen itself for conditions of freer trade. My Department offer technical assistance grants towards consultancies designed to improve efficiency, and the resources of the various State agencies —the IDA, the Industrial Credit Company Ltd., AnCO, the Irish Productivity Centre, Córas Tráchtála—are also available to assist the industry in the task of adaptation and rationalisation. The deputy will appreciate that further restrictions on imports would have implications in relation to our international obligations, including the obligations arising from our membership of EEC. The Government are, however, considering the position of industry generally to see if there is any way of relieving the present difficult problems.

Is the Minister aware that 63 per cent of the footwear is being imported from England? A footwear factory in County Monaghan, which employs 500 workers, has been on short time for eight weeks. Would the Minister's Department consider imposing some quota control in view of the fact that the figure is 63 per cent and is still increasing?

Sixty-three per cent of what?

Of the footwear used.

Of total consumption?

Yes, total home consumption. That is the figure which I got.

I have not got the total consumption figures in front of me and I cannot, therefore, with certainty disagree with the Deputy, but I believe his figure for total consumption of footwear is not correct. I have indicated that the matter of some form of control to give some protection to our footwear industry is under consideration.

Is the Minister aware that the English Government are keen on quota control from other countries?

The British Government have not got such control.

They are eager that it would be introduced.

That is not my information.

Did the Minister reply to Question No. 26?

We had better not engage in argument.

Can the Minister tell us is the footwear being imported from England produced in England?

I would be happy to give detailed answers to questions if they were put down so that I could obtain the information for the Deputy.

Did the Minister reply to Question No. 26 yet?

No. We are on Questions Nos. 24 and 25.

Is the Minister seriously saying that he does not know what percentage of the footwear on sale here is imported?

I am saying that I do not carry in my head that percentage figure. It is readily available and I will be happy to give it to Deputies but, without being certain of it, I will not put a figure on the record of the House.

(Interruptions.)

I want to call on other Deputies. In the meantime let us not engage in argument.

Did the Minister think I expected him to carry it in his head?

No argument, please.

Does the Minister not think it reasonable on a question of this nature, which relates to the importation of footwear, that he should have informed himself as to how much of the footwear——

The Deputy is still engaging in argument. I am calling Deputy Colley.

I take it from what the Minister has said that at the moment there is no form of quota control on imports of footwear from Eastern or other countries. If that is so, is there any great difficulty in imposing such a quota?

There are no quota restrictions. There is tariff protection of a number of different categories depending on the place of origin. The Deputy will be aware that there is negotiation by the Commissioner for Foreign Trade of Community relations with third countries and every effort is made to prevent individual member states of the Community from entering into bilateral negotiations with outside countries. The matter is not a simple one. We have community responsibilities. I am not in a position to indicate the steps which will be taken but I have indicated that this matter is being actively pursued.

Would the Minister agree that tariff control is useless in the case of footwear from very low cost countries? Would he also agree that quota control would be the only reasonable method——

There are countries whose costs of production are very low.

Question No. 26.

What is the percentage of sales on the home market of Irish-manufactured boots and shoes?

That is a separate question.

It arises directly from the question.

I have been looking at my files and I have not that information.

Question No.

26. Deputies must allow the House to make progress. There is a further question on the same subject matter.

It is not right that the Minister should come here and say that he has not got the information.

The Deputy must allow the House to make progress. There is no point in entering on an argument at this stage.

Can the Minister tell me what is the percentage of Irish manufactured——

The Deputy should put down a separate question.

The Minister does not seem to have this information.

This information is easy to obtain but I do not have it on file at the moment.

If it is so easy, the Minister should have it now.

Question No. 26.

26.

asked the Minister for Industry and Commerce the steps he proposes to take to prevent the importation of footwear from countries outside the EEC which is detrimental to the home shoe manufacturing industry.

The whole question of the difficulties facing industry is at present being examined, and the interests of the footwear industry will be taken into consideration in any measures the Government may decide upon for dealing with the situation.

When will this matter be examined? When will the Minister be in a position to do something constructive to save the livelihood of those engaged in the shoe industry?

I cannot put a precise timetable on it but I can assure the Deputy that I look on this as an urgent matter.

Does the Minister not think it is a matter of extreme urgency when men have been on short time for eight months? This matter requires the Minister's immediate attention.

This matter has my attention and I agree it is very serious.

Is the Minister aware that if he does not take a decision on this matter quickly footwear firms will be unable to gear themselves to deal with the situation which will arise when such a decision is taken and that it will then be of very little value? I am sure the industry and the trade unions concerned have informed him of this situation.

I am familiar with the situation and, as I said, I realise the urgency involved.

When will the Minister reach a decision? If a decision is not arrived at urgently, it may be useless when it is made.

I cannot give a precise date.

(Interruptions.)

Question No. 27.

Did the Minister give the footwear industry to understand that he would control imports of footwear from countries outside the EEC?

I quoted the relevant part of my speech a few moments ago. I said that the question of controls was not desirable but thinkable. I did not specify the particular sector of supply with regard to those controls on that occasion.

I am sure the Minister will agree that the interpretation of what he said——

We are now entering into the realm of argument. I must call the next question—No. 27.

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