asked the Minister for Industry and Commerce if he intends to adopt the same industrial policy as prepared and published by the previous Government; and if he will make a statement on the matter.
43.
Written Answers. - Industrial Policy.
28.
asked the Minister for Industry and Commerce if the Government intends to introduce changes to the policy or priorities of the Industrial Development Authorities.
I propose to take Questions Nos. 28 and 43 together.
The basic thrust of the Government's policy to accelerate industrial growth is to boost confidence and investment through addressing the critical imbalance in the public finances. This is at the root of existing problems such as high interest rates, penal levels of taxation and ultimately unacceptable levels of unemployment.
In our Programme for National Recovery, we set out a range of policy initiatives and indicated that priority would be given to achieving a reduction in interest rates. The fruits of our strategy are already clearly visible in the significant decline in interest rates to business which has taken place since the budget.
I support the view — as expressed by previous Minister for Industry and Commerce — that the central plank of our industrial policy must be to develop strong internationally competitive companies firmly rooted in the economy and making a contribution to employment growth and higher living standards. Evidence of our determination in this area is evidenced by recent developmental announcements in the natural resources area. I am also extending great priority to a programme of import substitution measures. In this latter regard, and, indeed, generally, there is a need for an increased emphasis on product, market and management development but the initiative primarily needs to come from industry itself. I believe that there has been an over-emphasis in our industrial policy to date on interventionist apsects such as State agencies, grants and tax breaks. Greater attention needs to be given to the wider macro-economic policies which influence industrial growth and profitability.
The policies and priorities of the Industrial Development Authority fall within the Government's overall strategy for Industrial development. I am at present determining what changes, if any, would be appropriate in that regard.