asked the Minister for Industry and Commerce if he will give an up-to-date progress report on actions taken to implement the specific undertakings outlined in the Programme for National Recovery which arise in relation to his Department.
Ceisteanna — Questions. Oral Answers. - Programme for National Recovery.
45.
Although it is only two months since I took over responsibility for the Department of Industry and Commerce. I am sure the Deputy will see from my reply that I have been far from idle in this short period.
The Deputy will recall that in my budget speech of 1 April 1987, I reiterated the words of the Programme for National Recovery when I spoke about the necessity of promoting a strong and competitive industrial sector. I referred to the importance of developing strong exporting established firms and the need to integrate competitive technology with the needs of industry. In recognition of the importance of these areas and in line with the published proposals in our programme, the Offices of Trade and Marketing and Science and Technology are now established in my Department.
Initiatives to support enterprise in trade and industry are ongoing within my Department. These include an intensive programme to restore Ireland's attractiveness as a location for foreign investment, increased emphasis on technology and marketing, indigenous industry development and the development of export services, especially financial services.
I am also identifying ways in which my Department could reduce costs to industry. In the insurance area these include a concentrated action by all interests involved in the areas of safety at work and on the road, legal costs and uninsured driving. The Deputy will recognise that these steps are all consistent with and outlined in the programme.
Too many rules and regulations also contribute to costs to industry. Therefore, as was proposed in our programme, I am closely examining what action can be taken to simplify or abolish complicated or obsolete rules, regulations and information requirements which impact on industry. In addition, I am having a detailed examination conducted on export documentation with a view to identifying areas where simplified procedures can be introduced. I see this as a key element in reducing export costs and improving our ability to reach export markets with the minimum of delay.
As I have already announced, my Department are undertaking a detailed review of the agencies associated with the implementation of the Government's industrial policy.
This Government have recognised and our programme specifically referred to the fact that the key to industrial expansion lies in our ability to identify and capture export outlets and I am giving particular attention to this area. To this end I have asked Córas Tráchtála and the Irish Goods Council to set up a mechanism, in liaison where necessary with the CII, to identify potential export products. The Export Promotion Bill which I hope to introduce shortly will require CTT to concentrate its assistance on firms which have adopted a strategic marketing approach to exporting. In addition, I am considering establishing an export services marketing committee under the aegis of my Department to co-ordinate the export of services.
In a broader context, the Government have entered into discussions with the social partners. The arrangement envisaged would enable the social partners to bring forward and discuss with Government their contributions to an integrated medium-term programme for national recovery. A number of joint working parties are being established at official level with the social partners to consider proposals for the programme. These working parties are to report back to further meetings which would take place between the Government and the social partners.
How many jobs?
I would not like to ask how many jobs you lost during the last four and a half years while in Government.
With no disrespect intended, the Minister's reply was very long. Would he be good enough to comment on two or three specifics mentioned in the Programme for National Recovery? Can the Minister tell us if the product information centre, as mentioned on page 13 of that programme, has been established; what precisely is to be done in regard to his commitment to foster group marketing schemes; whether he has set up what was called in the document an immediate task force on export documentation; and, finally, how far has he got with regard to export substitution in the public sector?
Supplementary questions in an omnibus form are discouraged by the Chair.
That is why I did not ask all of them.
A task force on export documentation was set up within four weeks of my taking office. As I am sure the Deputy will appreciate, the first three weeks were taken up full time with budgetary matters, day and night, Saturday and Sunday.
That is right.
That task force was set up during the first month.
To be clear about it, it was set up?
On group marketing and exports; the Deputy is already aware of the announcement to establish export trading houses. The tax incentives regime for those will be reflected in this year's Finance Bill. It is a question of recognising the weaknesses which exist in smaller Irish companies to internationally market their products and services. The same is true of some medium-sized companies. It is a glaring weakness which everybody has identified. This is a first step. With the establishment of export trading houses who have a very strong presence in the marketplace, they will have the expertise and the financial muscle to penetrate and stay in the markets. Irish manufacturing companies, small and medium, can sell their products to export trading houses which, in turn, will sell them into the various markets around the world. That is a situation which many of those companies would not be able to achieve based on their own financial resources or the finance available to them.
The Finance Bill.
That is a very positive step and something which will very quickly make progress. As the House knows, the attractiveness of a 10 per cent corporate tax regime there is evident when one considers that if a similar company had been set up before that decision was taken the tax regime would be 50 per cent. There is a definite incentive there and we expect a fair response in regard to the setting up of group marketing. In relation to import substitution——
In the public sector?
Yes. I had established import substitution units within my Department and that of the Environment in 1982. In taking over office this time, I was sadly disappointed to see that they were made totally ineffective. From my own knowledge and my past experience, some public purchasing is done without any due regard to the availability of similar Irish products at a comparable price.
I am very sorry to interrupt the Minister, but I am bound to remind the House that about now I should come to deal with other business.
The Deputy can be assured that the drive is on in that regard and that there will be maximum import substitution.