Dáil Éireann debate -
Thursday, 13 Jun 1985

Vol. 359 No. 8

Ceisteanna—Questions. Oral Answers. - Multi-Fibre Agreement.

12.

Mr. Barrett

(Dublin North-West) asked the Minister for Industry, Trade, Commerce and Tourism the steps he has taken towards the renegotiation of a multi-fibre agreement considering the termination of the existing agreement in July 1986; if he is aware of the critical importance of such an agreement to the Irish clothing industry and to the Irish textile industry; if he is aware of the serious job losses and social disorder that will follow if no new agreement is negotiated; and if he will indicate the steps he proposes taking to guarantee the continuation of a multi-fibre arrangement.

13.

Mr. Lyons

asked the Minister for Industry, Trade, Commerce and Tourism if he will ensure that the renegotiation of the multi-fibre arrangement be pursued to ensure its continuance beyond 1986 because of its importance to the clothing and textile industry.

Mr. E. Collins

I propose to take Questions Nos. 12 and 13 together.

I am fully aware of the importance of the multi-fibre arrangement (MFA) to the Irish clothing and textile industries and the implications for these industries if it is not renewed.

The Government accepted a recommendation of the report of the Sectoral Development Committee on the Clothing and Textile Industry that Ireland should favour renewal of the MFA, which expires at end July 1986. In this context, discussions have been held with the EC Commission in recent months and the Irish case for renewal of the MFA has been vigorously pressed.

I understand that the EC Commission expects to submit shortly a proposal to the Council of Ministers on the position which the Community should adopt in the forthcoming discussions in the GATT on this issue. We will be urging our Community partners to press for the renewal of the MFA.

Mr. Flynn

I am pleased to hear the Minister say that the Government will be pressing this matter because it is of great significance to the clothing and textile industry. Is the Minister aware that this multi-fibre arrangement accommodates about 80 per cent of world trade in clothing and textiles and that some 10,000 jobs have been lost in Ireland in the last ten years in those areas? Is the Minister aware that about 300,000 jobs have been lost in the EC in these areas? Will the Minister give a guarantee to the House that there will not be a return to the GATT arrangement and that he will insist, on behalf of the Government, on having the multi-fibre arrangement renegotiated in its original terms when it runs out in July 1986?

Mr. E. Collins

I indicated quite clearly in my reply that we favour a renewal of the MFA. Indeed, I had the pleasure of being the Minister responsible when the present multi-fibre agreement was adopted in 1981. Obviously, we would like to see this derogation from the normal GATT rules continue. I agree with the Deputy, and I am sure the House understands, that without the MFA we would have a very difficult situation in the market place because of substantial and uncontrollable imports of textile and clothing from low cost countries which would completely distort the market in Europe. I cannot comment on the possibility of having exactly the same type of agreement. For instance, the United States is certainly changing its attitude on international trade and has become somewhat more protective. The House will understand that this is a highly complex measure which includes a large number of bilateral agreements to be entered into by this country with low cost countries within the general framework of an MFA. While I can say that in principle we are in favour of a renewal of the MFA I must point out that I expect negotiations leading up to an agreement to be long and complex.

Mr. Flynn

I should like the Minister to understand that the Irish clothing industry would regard the renegotiation of the MFA as a vital national interest. In the region of 25,000 people are involved in clothing and textiles here and I ask the Minister to bear in mind that while exports from that sector were at about £167 million last year there is no doubt that if the Minister fails to have the MFA negotiated to our satisfaction the whole clothing and textile industry will be put in jeopardy. Will the Minister give an assurance to the House, and the industry, because rumours are rampant——

An Ceann Comhairle

That is a statement and it is repetition.

Mr. Flynn

——that there is a change in attitude, maybe not in Ireland, but in other countries that might in some way minimise the effect of the MFA agreement? That would have a disastrous affect on the industry. Will the Minister give the commitment I have sought.

Mr. E. Collins

I accept that the commission will shortly make proposals to the Council of Ministers. I should like to say in relation to the Irish clothing and textile industry that it too will have to compete and modernise to meet the demands. The question of trade within the EC is a matter for the EC as a whole in relation to its own free trade and competition rules. I should like to reiterate that we are in favour of a new MFA and the House can be assured that whatever steps are necessary to protect Ireland's clothing and textile interest within the confines of that MFA will be fully represented at the negotiations.