Vol. 420 No. 6
11 Mr. Barry asked the Minister for Industry and Commerce the decisions, if any, the task force established to implement the Culliton report have taken; if these decisions are now being implemented, and when they will be made public.
15 Mr. McCartan asked the Minister for Industry and Commerce if he has yet received the first report of the task force on industrial policy which was established following the publication of the Culliton report; if he will outline the main recommendations of the first report, and if he will make a statement on the matter.
22 Mr. Gilmore asked the Minister for Industry and Commerce if, in regard to the Review of the Programme for Government, he will outline the progress, if any, which has been made on the commitment to the development and upgrading of our indigenous industrial base as the key to generating real jobs and a sustainable improvement in our national standard of living, and if he will make a statement on the matter.
24 Mr. Garland asked the Minister for Industry and Commerce whether he is going to take on board any of the recommendations contained in the Culliton report, taking into account the measures enacted in the Finance Bill which would appear to be contrary to such recommendations, and if he will make a statement on the matter.
28 Mr. Taylor asked the Minister for Industry and Commerce if he will make a statement giving his estimate of the number of additional new jobs which will be created in the current year and in each of the next five years as a result of the implementation of the recommendations in the Culliton report.
35 Mr. G. O'Sullivan asked the Minister for Industry and Commerce if he will outline the progress he has made so far in implementing the institutional recommendations of the Culliton report, and if he will make a statement on the matter.
49 Mr. Quinn asked the Minister for Industry and Commerce if he will confirm that the group established by him to advise on the implementation of the Culliton report have completed their final report; if he will publish their report and make copies available to Members of the Oireachtas, and if he will make a statement on the matter.
I propose to take Priority Question No. 11, Oral Questions Nos. 15, 22, 24, 28, 35 and Written Question No. 49 together.
The Culliton report made recommendations for a reformed industrial policy and for changes over a wide area of public policy. The Government, when they considered the report last January, accepted its thrust and established a task force to facilitate the implementation of the Culliton recommendations and to achieve the necessary change of focus across a broad range of policy areas.
The Moriarty Task Force has recently submitted a first report which I will be putting forward for decision at Government shortly. Their second report covering the remaining issues will, I understand, be available within a number of weeks.
It would not be appropriate to discuss the contents of the report of the Moriarty Task Force until they have been considered by Government.
Deputies can be assured, however, that the extensive changes in policies and measures that are called for will get the speedy and decisive attention of the Government. Announcements will of course be made then, as is appropriate.
Deputies are correct when they identify the development of industry and particularly of indigenous industry as a key concern of the Joint Programme for Government. It was, likewise, a primary concern of the Culliton group in their review of industrial policy. That group made their recommendations for change on the basis that a new concentration is needed on the upgrading of indigenous industry. They saw improvements in indigenous industry's performance and growth as contingent on changes in education, training, energy, infrastructure, communications, taxation, policy for State trading companies as well as in programmes for industry.
They appointed out that there are no quick fixes. But if the new policies that they recommended and in particular the new concentration on self-reliance and enterprise in indigenous industry and on its development, upgrading and growth were implemented, then improved net jobs growth could be attained. They projected, as a result of changed policies taking effect, a net increase of up to 10,000 jobs per annum on average from industry and private services. This level would be an improvement on what is now attainable.
An improvement on that level of employment increase will depend in the short run on factors such as our competitive structures and the state of our markets abroad. In the medium term, implementation of the Culliton approach will give the better, more sustainable growth to which we aspire.
The Minister referred to indigenous industry. Would the Minister define what he means by that? Is it Irish owned and located here or merely industry located in Ireland?
I mean Irish owned industry primarily, but there is an extended definition under consideration which will include controlled from Ireland, irrespective of the ownership. In present circumstances it is probably not unreasonable to accept that as a definition of "indigenous Irish industry".
Would the Minister agree that that definition is out of date? The Minister should invent a new word for industries located here, managed here and with the capability of expanding here regardless of where they are owned or from where they are controlled.
A distinction has to be made between the exercise of control here and the exercise of control from abroad. The distinction, in the European context particularly, is becoming less relevant, or less clearcut than it was in the past. Nonetheless, it is a valid distinction to make and it is easy to recognise that there are significant differences at the moment. The greater weakness is clearly on the indigenous side and it is one to which Culliton and various other commentators have drawn attention.
Let us take the example of two firms manufacturing the same product, one controlled from Germany and the other Irish-owned and controlled. They both apply for a grant to the IDA. The Irish-owned and controlled company will not get a grant but the German-controlled company will get a grant. Surely that is a recommendation from Culliton that the Minister will reject, despite what we have read in the papers.
I do not know how the Deputy comes up with that example, saying that in those circumstances the Irish-owned operation will not get a grant and that the German-owned operation will. They will be treated equally.
I hope the Minister is right.
The Deputy may be referring to the question of equity, not grants. Culliton has drawn attention to the fact that in his opinion it can be desirable in appropriate cases that part of the package of assistance offered by the State would include some equity. He does not think that would apply in the case of non-indigenous companies.
It is an important point which is causing great confusion. It appears that Culliton recommends that Irish companies doing exactly the same job will be treated differently from foreign companies. Equity and grants are not the same. Equity by definition involves a cost to the company, whereas grants are free.
