asked the Minister for Industry and Commerce if, in reference to a deputation he received from Ballyshannon last October, he is in a position to announce any scheme or incentives to offset the disadvantage under which some industries in Donegal and other Border counties must operate in competition with similar concerns which are highly subsidised on the other side of the Border.
Ceisteanna—Questions. Oral Answers. - Donegal Industries.
8.
The deputation which I received last October was concerned with a service industry of a type which is not considered by the IDA to be eligible for grant assistance. I indicated then that if, because of its circumstances, this particular case were to be reconsidered as a special one, certain additional information would have to be made available. So far this information has not been forthcoming. It would not be practicable to introduce any special scheme or incentives as envisaged by the Deputy, solely in relation to industries in the Border areas.
Would the Minister not consider seeking this information himself? His Department would be in a much better position to obtain it; a phone call would get the information. Is the Minister aware that cross-Border industries particularly where heavy transport is involved—among others I am referring to metal and concrete products—have subsidised machinery, cheaper vehicles, lower insurance costs and cheaper petrol? It is impossible for our industries to compete against this.
The inquiries the Deputy urges me to make have been made. They reveal that so far as we are aware there is no Government assistance to the particular category of industry to which the Deputy has referred. This is the result of our inquiries which perhaps explains why the people to whom I was speaking did not forward information.
Does the Minister deny that these industries have machinery where the depreciation factor is much more advantageous than anything we have, that they have a subsidy for the purchase of machinery, that they have lower insurance and that they can buy cement cheaper than we can even though it is manufactured here? All these factors make it impossible for our industries to compete. Is the Minister insisting that the specific industry about which the deputation approached him on that occasion is a service industry? There is an element of manufacturing in it and there is also a large employment content involved. The Minister is aware that the IDA frequently give substantial grants for the employment of a few people in industries which have a lower employment content than the one in question.
There are a number of strands in that question. The IDA have always exercised judgment in the matter of the level of grant, taking into account all the relevant factors, not just a single one. The Deputy made observations about cost comparisons of the widest possible kind. Those cost comparisons are not all in one direction. The nub of the matter was that I was assured that there was assistance in Northern Ireland for the particular category of industry to which this belongs. I asked the people on that delegation to send me some information and I told them I would see what we could do about it. I got no information. I asked for the information myself and I found there was no such assistance in Northern Ireland. If the Deputy can bring some new light or some real data to bear on the situation I will be willing to look at it.
Is the Minister aware that industries in Border counties must compete with similar industries in Northern Ireland using subsidised transport? They are subsidised if you take into account the fact that they get a grant for replacement when the transport is written off while we must pay the full amount. The original price of trucks in Northern Ireland is considerably less, the insurance is less, the tax is less, the petrol is less. As well as that they get a subsidy for the replacement of machinery whether it is static or transport.
My information, which is not from the observations of any individual but from careful comparisons made between economic incentives in different parts of these islands, is that our package taken as a whole is the best one. While there may be some truth in what the Deputy has said there are compensating advantages on this side. I cannot accept the contention that the basic terms of competition are so different and that all the advantages are in favour of the people in Northern Ireland.
Can the Minister say if some of the products of Northern Ireland industries are VAT-free at the Border?
We are not having an extension of this question. No. 9, please.
Am I to take it that the Minister is denying that there is an advantage for cross-Border industry competing against ours?
In the blanket sense in which it is put by the Deputy I do deny it. I do not deny the possibility of it existing in particular instances, but in general I do deny it.
9.
andMr. Keaveney asked the Minister for Industry and Commerce whether there is any prospect of a new industry being located in a factory premises (name supplied) in Milford, County Donegal.
I have been informed by the Industrial Development Authority that the availability of the factory premises previously occupied by Precious Woods Ltd., has been brought to the notice of several industrialists. So far no firm proposal to locate an industry in the premises has been received but I can assure the Deputies that efforts will continue to be made to attract a suitable industry for these premises.
Will the Minister ensure that the premises are not disposed of for any other purpose pending further effort on the part of the IDA and others to find an industry?
I can give the Deputy that assurance. I can reiterate that significant efforts are being made to attract a suitable industry for that premises.