At Deputy Kelly's request I will skip the information which I was in a position to give, was perfectly willing to give but which he apparently resented.
References were made by a number of Deputies to the general question of natural resource based industries and disappointment was expressed at the fact that some of these were not making the kind of progress we would wish to see. Some sectors in this general area are unfortunately experiencing difficulties at present. Many of the factors which occasion these difficulties are completely beyond the Government's control but we are making every effort through the IDA and other agencies to alleviate these difficulties and to provide for the future growth and development of these sectors on a sound basis.
One of the industries which is experiencing difficulty is the leather and tanning industry. These difficulties are known to the House. My Minister of State, Deputy Burke, dealt with the matter fairly fully and in the past week or so he called on the Commission in connection with the matter and he has also raised the matter in the Council of Ministers. There are some prospects that the Commission will take the steps which we are strongly suggesting to them in order to protect not just the Irish industry but the tanning industry in several other Community member states. We are particularly anxious that the Commission impose controls on the imports of cheap leather from three South American countries which we regard with justification as trading unfairly, in view of the attitude that has been taken by these countries to the export of unprocessed hides.
On the question of timber, it is well known that several of our timber using industries are in considerable difficulties. This is due to market conditions. It is due to cheap products in these lines such as chipboard and hardboard being available on Community markets, particularly the British market. The Government have taken considerable steps and unfortunately have had to spend a great deal of public money in order to try to keep these factories open while the whole question of the timber industry and the future planning for it is worked out. This can be done following the completion of a major study on timber which the IDA had under way for some time, the results of which are expected at the end of this year. We are in the position that we will have a huge upsurge in the quantity of Irish timber becoming available over the next number of years as many of the early forests planted in the twenties and thirties come to maturity. It is the Government's wish that this timber will be used to the greatest extent and that the greatest possible value would be added to it and that our heavy imports of timber for many purposes would be reduced and that perhaps we might be able to build up an export market in this commodity of which we will have a more than adequate supply in the years beginning around 1980. Unfortunately, in certain northern and eastern European countries there has been State intervention in the timber industry to an extent that makes it very difficult to trade against them in certain of our traditional markets both here and in Britain. I hope that the Commission in whose hands these matters unfortunately now lie entirely, will take the appropriate steps to ensure that Community producers and processors of timber will not be put at an unfair disadvantage vis-à-vis the other countries.
In regard to meat processing which was mentioned by some Deputies, the position is that in the last couple of years the IDA have given substantial grants towards the processing and boning out of meat. They have not given any as-sistance towards the slaughtering of beef of which there is considerable overcapacity.
The question of processing meat was one of great difficulty up to April of this year because of anomalies in the MCAs on processed meat and in the co-efficient on cuts of processed meat. I am glad to say that after a long struggle my colleague, the Minister for Agriculture, succeeded in getting the worst of those anomalies, so far as frozen or uncooked meat was concerned, removed in April and the way is now clear for an increase in processing.
The employment content of meat processing is very high. The amount of value which is added is also considerable and is, therefore, something we will naturally seek to encourage to the greatest possible extent. Now that the opportunities are better, due to the removal of at least some of the anomalies, but unhappily not all of them, one looks forward to an increase in investment and employment in this important and valuable area.
I regret to say that there is an absence of MCAs on cooked beef products and this has rendered that industry noncompetitive and has effectively prevented any worth-while development taking place in it. Until this situation is rectified the opportunity for developing cooked beef products which offers the greatest prospect of all for adding value and increasing employment will remain untapped.
During the years 1973-77, inclusive, the IDA approved grants of £25 million towards eligible expenditure of £86 million in respect of projects in dairying. The IDA are introducing an industrial development strategy for processing the expected substantial increase in milk output. I understand that this year alone it is running at 50 per cent higher than it was last year. In 1977, 70 per cent of milk was used for the manufacture of butter and skimmed milk powder. If this pattern is maintained, increased milk output would provide an additional 750 jobs over the next two years. If, however, alternative higher value-added products were produced from milk, a total of 1,500 jobs would result from the increased productions. The IDA policy will be to diversify milk usage into the high value-added products and will work closely with the Department of Agriculture to ensure a co-ordinated approach to the development of that sector.
With regard to natural gas, which was mentioned by one Deputy, the position is as is generally known. I have asked BGE and the IDA jointly to identify natural gas using sectors and to seek to attract either indigenous or foreign investment in those sectors. The main sectors where our natural gas would be of the greatest benefit to us lie in the glassware, ceramics, porcelain, metal treatment and food processing sectors of industry. The IDA have made approaches to a number of target companies within these sectors and two projects using natural gas and with a job potential of 480 have already been approved by the IDA. Between now and March next, the IDA will have approached a large number of additional firms in both Europe and the United States.
Complaints were made in the course of the debate by Deputy Kelly and I think one other Deputy, that the IDA were very good at establishing new industry but it was wondered if there were adequate procedures for looking after existing industries, particularly those which might run into commercial or production difficulties from time to time. Part of the IDA's responsibilities for industrial development generally include responsibility for looking after existing industries. They provide rescue and development services and assist firms in commercial difficulties through joint action with my Department, Fóir Teoranta and the Industrial Credit Corporation. They promote joint ventures between Irish and foreign firms where these are felt to be necessary or beneficial to the survival or expansion of the firm concerned. They promote product-licensing and subcontracting opportunities for existing firms and assist with the identification of product development opportunities for firms.
Existing industries are eligible for the full range of grant and other incentives for expansion and/or re-equipment. The procedures for looking after existing industries are in my view adequate, but unfortunately it too often happens that firms in difficulties do not approach the IDA or one of the other agencies for assistance or advice until it is too late to do anything effective and the firm has collapsed.
Some very slight reference was made to the EMS by one or two Deputies and its possible effect on industry. The fact that a minute or two of this debate was devoted to the EMS contrasts starkly with the fuss that was kicked up here this morning for the purpose of publicity and nothing else. Proof that it was an artificial fuss is the fact that what should have been a prime topic in this debate was virtually ignored.
