asked the Minister for Industry and Energy if, in view of the increasing volume of imports of building materials for the construction industry, he will state the steps he proposes to take to promote the manufacture of the materials here.
Ceisteanna — Questions. Oral Answers. - Construction Industry Materials.
19.
Mr. Leonard
The Deputy will be aware that our obligations under the Treaties of the European Communities prevent us from taking action to restrict imports of building materials from other Member States. However, I am convinced that the Irish firms involved in this sector should be capable of increasing their penetration of the home market through improvements in marketing, quality, product design, price and delivery performance. The IDA and other bodies concerned with assistance for industry provide financial and other incentives for these purposes. The Government's overall economic strategy to improve the competitveness of the economy generally is also an important factor.
Mr. Leonard
Is the Minister aware that a Foras Forbartha Report at the end of last year indicated that half of the £360 million worth of materials imported for the construction industry could be manufactured here, notably concrete products, bricks, panelling and floor covering? Would the Minister agree that the Department failed to recognise the market for materials here and gave importers an opportunity to flood our market with goods that should be manufactured here?
That may be a fair criticism. What the Deputy has said and the figures he has quoted are correct. Indeed it has been estimated that if the business in question had been diverted to Irish building material firms, there could have been an additional 5,000 to 10,000 jobs. That is why I said, in response to an earlier question, that it does behove people in the building industry who are purchasing managers to bear in mind the availability of native resources. We have a very sophisticated range of building material products produced within the State. It is very important that people who are purchasing for the building industry should realise this. I am glad the Deputy has brought the matter to public attention by means of his Parliamentary question.
Mr. Leonard
Would the Minister not agree that the reason those products are now being imported is the Department's withdrawal of grant aid in the matter of concrete products, that that is the reason a lot of those businesses went out of existence? Would the Minister, along with the IDA, introduce measures and aids so that those industries might get back into production? It must be remembered that there are vacant factories lying idle — they are all low technology — in which a lot of the material I mentioned could be utilised. Would the Minister agree that this should be done especially in a time of very high unemployment?
I will have a look at that. If there are any of those projects which are viable I am sure the IDA would be interested in putting them back on the road. I might also draw the attention of the House to the fact that my Minister of State, Deputy Collins, has specifically drawn the attention of the Construction Industry Federation to the possibility of buying more native products at a meeting he had with them on Friday, 11 February last.
Arising out of the Minister's reply would he——
This is developing into a debate. I am not talking about Deputy Reynolds now but the Minister seems to have accepted what is in the question and anything more now is obviously a debate on the matter.
This is just an addendum. Would the Minister accept there is grave need to focus more in the State-purchasing area, especially in the construction industry, on buying Irish raw materials? Would the Minister not consider setting up a monthly reporting system within the new section in his Department — which I set up when there — the imports substitution section, to ensure that the maximum amount of money is spent in Ireland? This arrangement is in operation in many EEC countries at present and it is time we got down to business.
The Deputy has made an interesting point. However, he will appreciate that there are Community rules in this area which must be borne in mind in regard to State purchasing.
They are in operation in Britain, France and everywhere else. I will show the Minister a copy of the one the British Government operate if he wants to see it.
There are several other Deputies awaiting——
The Minister mentioned Community rules and regulations. Is the Minister not aware that many importers or Irish competitors operate here only through hidden grants and subsidies and will he take this matter up with the EEC?
If I can get any evidence of that I will certainly take it up with the EEC. While I do not expect the Deputy to have it, if any people who have been listening to this exchange can give me examples, I will certainly take up the matter.
Would the Minister accept that it does exist?
That is a reasonable point.