asked the Minister for Industry and Commerce the action he proposes to take to deal with the situation facing Irish industry as detailed by the Federated Union of Employers in their official bulletin of 2nd January, 1975.
Ceisteanna—Questions. Oral Answers. - Irish Industry Position.
17.
I presume the Deputy is referring to the December, 1974, issue of the Federated Union of Employers' Bulletin which refers to the decline in consumer demand, the level of unemployment and the inflationary situation.
The Deputy will be aware from the White Paper, A National Partnership, that the Government are clearly committed to the maintenance of employment and living standards. The recent budget as did that of 1974, provided increased social welfare and tax concessions for individual taxpayers, measures which should stimulate consumer demand. I have also, as the Deputy is aware, set up a committee to take special action to promote the purchase and sale of Irish goods. As a measure of the Government's commitment to increasing job creation they have made a substantial increase in the financial allocation this year to the IDA for grants to new industry and for the expansion and re-equipment of existing industry.
The submissions made by industry have been taken into account by the Government and the budget of last week provided tax concessions which will ease cash flow problems, and announced that other measures were under consideration to aid exports of capital goods.
The Deputy will appreciate that the difficulties which we are going through are shared internationally and that, being heavily dependent on external trade, the depressed external economic scene places a severe constraint on our economic growth potential. Until the international economic scene begins to improve, expansionary policies pursued at home will obviously take some time to show results.
Does the Minister not accept that, even though unemployment is soaring the Government have not taken any action to remedy the situation?
I do not.
Does the Minister not accept that the comments of the FUE on the Government's inactivity are a fair assessment of the situation?
I do not. The budget of 1974 initially recognised that unemployment would be the major concern of this country over the current winter. Many other Governments did not recognise the fact at that time—April, 1974. They concentrated their attention on inflation. The budget of 1974 was designed to act as a buffer against this high unemployment figure, which might be much higher but for the effects of that budget. The 1975 budget is, as the Minister described it, a carefully expansionary budget. This, we are sure, will have the effect of reducing the number unemployed this year and maintaining an increase in growth in the coming 12 months.
(Interruptions.)
That is the greatest nonsense of all time.
Order, please.
At that time it was mentioned that the unemployment figure for the first quarter of 1975 would probably reach the 100,000 mark.
A question Deputy.
Would the Minister accept that the 100,000 mark will be reached much quicker than the FUE expect, and quick action to remedy the situation is needed?
I do not accept that.
(Interruptions.)
Next question.
I do not accept the FUE's assessment of the situation as it is now or for the future. I do not agree they are the final arbiters.
Question No. 18.
I am concerned that so many people are out of work.
(Interruptions.)
Deputies are disrupting Question Time.
The Minister is disrupting the lives of 100,000 people. May I ask a question which in my view is relevant?
We are now dealing with Question No. 18 and the Deputy may not ask a further Question on No. 17.
(Interruptions.)