asked the Minister for Industry and Commerce the new initiatives he is considering to arrest the continuing decline of jobs in the manufacturing industry.
Ceisteanna—Questions. Oral Answers. - Industrial Development Strategy.
11.
(Limerick East): The Government's strategy for industrial development is set out in the White Paper on Industrial Policy, which was published in July, 1984. The principal elements of the strategy are:
(a) increasing emphasis to be placed on the development of indigenous industry;
(b) greater inter-industry linkages between foreign-owned and indigenous industry.
(c) the continued attraction of projects from overseas, particularly those projects performing key business functions;
(d) the creation of more new small industries through the regionalisation of the IDA Small Industries Programme and other measures; and
(e) a shift in State support from fixed asset investment to export marketing development and technology acquisition.
A range of initiatives is being taken to implement the Government's strategy and these are constantly refined in the light of changing industrial and economic circumstances. The aim is to promote a stronger industrial base which will lead to a growth in employment in industry and also, as a consequence, in the services sector.
Would the Minister not agree that unfortunately there is a continuing decline in manufacturing industry and that consequently some new initiatives are called for to stem this outflow and to accord some measure of protection to many of our traditional industries which are already in a difficult state and which may well decline further unless some measure of protection is given to them on similar lines to protective measures being given by other State in the EC to comparable industries in those countries? We need something new here. Is there anything new in the pipeline in the Department on this issue?
(Limerick East): There are a number of things that are current of which the Deputy will be aware. But I am not in favour of any form of protection. We are a very small nation depending more than any of our neighbours on trading internationally and we should be careful not to inhibit international trade. Because we are dependent on the free flow of international trade it would be our policy to remove trade barriers further rather than to erect any new ones. Currently there are measures in the Finance Bill which will help industrial promotion.
The Industrial Development Bill went through the Seanad yesterday and that allows for grants to be paid for technology acquisition. It also enables people to take their grants in terms of per capita payment for employees which will enable them to buy secondhand machinery and get the cashflow available from a grant paid per capita employee as soon as the employee is taken on which gives the flexibility which some investors require. The National Development Corporation Bill has now passed all stages in the Seanad. We are in the process of appointing a board that will appoint a managing director and I propose to have the vesting date at a very early date. That fills in another area which required attention where promotion will be conducted in a different way with the provision of another source of venture capital and expertise. So there are initiatives which this very week are current and coming on stream and give the development agencies both old and new a greater portfolio of incentives to offer to indigenous entrepreneurs and those attracted in from outside.
Could the Minister give an approximate date as to when the NDC will become operational?
(Limerick East): I can tell the Deputy that I will not be putting on the brakes. As soon as I make the necessary arrangements I will do it.
Mr. O'Keeffe
I was interested to hear the Minister state that the Finance Bill will create a climate for industrial development. I could not agree. If one looks at the change in the leasing arrangements, they do not seem to help. Also in regard to export-orientated industry section 84, which was a major incentive, has been tampered with and that will cost about £12 million.