asked the Minister for Industry, Trade, Commerce and Tourism if, in view of our substantial export of raw hides and imports of finished leather and leather products, the Government have any plans to control the export of raw hides and to promote the development of industries manufacturing leather and leather goods.
Ceisteanna—Questions. Oral Answers. - Raw Hide Exports.
8.
It is the objective of the Government to promote, to the fullest extent possible, the development, on a profitable and enduring basis, of industries such as the tanning industry which involve the processing of indigenous raw materials. However there would be no economic advantage in prohibiting, in whole or in part, the export of raw hides. The difficulties of the Irish tanning industry in recent years have been mainly related to competitiveness in the international market for leather. This determines the extent to which native hides can be processed in this country on a viable basis. In the present circumstances of the tanning industry in Western Europe generally, it would be unrealistic to envisage the possibility of having all the native raw hides processed in this country. The Government would of course, prefer that a higher proportion of home produced hides were converted into leather in this country, but they recognise the problems involved in selling the output profitably. It must also be recognised that native hides are not suitable for the production of certain of the types of leather required by the footwear industry and by the leather goods industry in this country.
I am sure the Minister agrees that in the area of job creation his Ministry is the most significant in terms of creating jobs in industry. Have his Ministry submitted any plans or discussed with the IDA the question of developing industry based on our hides or shoe and leather industry?
I am sure the Deputy is aware that substantial funds from the IDA and Fóir Teoranta have been forthcoming for the Irish Leathers group. The amount of State aid there has been very substantial. That is the main leather producing company in the country. I should add, in relation to the Deputy's question, that we have our obligations as a member of the EEC which would prohibit us putting controls on the export of hides. We simply would not be able to sell the output if all the hides were manufactured here. It is an extremely competitive industry worldwide and a number of the major factories in the industry throughout the world have closed in recent years. It is an extremely competitive area.
In relation to export substitution could we not considerably cut down on our imports of leather by manufacturing at home from our own raw materials?
I must repeat again for the benefit of the Deputy that we are a member of the EEC and that this implies freedom with regard to competition. That is a fact of life. We are very glad we are able to sell our goods in other markets at competitive prices. Some of the native hides are simply not suitable for the type of leather required. Because of the nature of the industry a certain mix is necessary with regard to home production and there is need to import certain of the leather required by the industry.