andMr. Kelly asked the Minister for Industry, Commerce and Energy the reason for the drop of 1.2 per cent and 2.5 per cent respectively in the volume of production in the wood furniture and brooms sector, and the paper and printing sector in the August-October period of 1978, over the same period of 1977; and if the trend is likely to be reversed in 1979.
Ceisteanna—Questions. Oral Answers. - Industries Production Drop.
3.
The level of production is ordinarily governed by many factors such as market demand at home and abroad, willingness to restructure and develop new projects, industrial relations and general competitiveness of individual enterprises in the industry. In the particular quarter mentioned in the question, as far as both industrial sectors are concerned, production was largely maintained for the months of September and October, compared with the same months in 1977. However, production during the month of August— traditionally the holiday month—appears to have been lower in 1978 than in 1977. It is not possible to indicate particular factors which influenced production during August 1978.
A more accurate assessment of production trends may be made by comparing figures over a longer period of time. In the ten months ended October 1978 the level of production in the wood and furniture and brushes and brooms sector was marginally lower than in 1977 while in the paper and printing sector it was slightly higher. The trends cannot be attributed to any particular factor.
In the case of the wood and furniture and brushes and brooms sector some reduction in the level of production may be expected in the current year due to difficulties in the timber processing area. In the case of paper and printing some increase in production is possible in line with the expected general improvement in the economy.
4.
andMr. Kelly asked the Minister for Industry, Commerce and Energy why a decline in production of 3.3 per cent in the clothing and footwear industry in August-October 1978 took place over the same period in 1977; and if this trend is expected to be reversed in 1979.
The level of production is ordinarily governed by such factors as market demand here and abroad, willingness to restructure and develop new projects, industrial relations and general competitiveness of the individual enterprises in the industry. In the particular quarter mentioned in the question, there was not a consistent trend in so far as production, compared with the same period in 1977, increased in the final month following reductions in the two preceding months. It is not possible to isolate particular factors as the cause of the average decline of 3.3 per cent in production over the period.
A more accurate assessment of production trends may be made by comparing figures over a longer period of time. The latest available statistics indicate that for the ten months period January—October 1978, the level of production was virtually the same as for the corresponding period in 1977.
As far as can be foreseen, no significant overall change in the level of production is expected in 1979 in this sector.
Is the Minister satisfied that there will be no improvement in output next year in the industries mentioned?
No significant increase in production is expected but there may be an increase in productivity or output in that sense.
If there is no significant increase in production but an increase in productivity, surely that implies laying off workers?
It could imply that but I hope that will not arise.
How will it be avoided if productivity is improved and production stays static?
The level of production may show some small increase. It is dependent on a number of factors, mainly, how much we can sell abroad and to what extent our market is penetrated by imports.
May I ask the Minister a definite question? Does he anticipate redundancies in the clothing sector during 1979?
There have been heavy redundancies in these two sectors over the past four, five or six years. I do not anticipate any further redundancies this year, but unfortunately, one cannot guarantee that.
Would the Minister not agree that the decline to which Deputy Bruton's and my question draws attention is very likely to be attributable in part at least to a heavy increase in imports of clothing and footwear?
As I pointed out in my reply, there was no decline in the ten months of 1978 for which figures are available.
Can anybody state why we cannot be more competitive in relation to footwear for instance? I am in-clined to ask the same question about furniture. Why are we threatened by imports?
That is a separate question.
It is relevant.
It is a quite separate question.