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Dáil Éireann debate -
Thursday, 15 Oct 1992

Vol. 423 No. 6

Adjournment Debate. - Compensation to Customs Clearance Agents.

I was expecting to be asked to share my time with another Member and if he arrives perhaps the Chair will agree to that.

In 1987 the Irish people ratified the Single European Act. This set the scene for the introduction of the Single Market on 1 January 1993. Customs clearance agents will be casualties of this great structural change. These agents are now and have been an integral part of the business of clearing goods through Customs. They are private firms who have used their initiative to provide an important service to exporters and importers. From 1 January 1993 this service will no longer be required. Customs clearance agents will be put out of business on that date. They do not wish to be put out of business but it will disappear and they will be required no longer. They will have no means of earning a living after 1 January and their livelihoods will be destroyed. The business in which they have been engaged will not offer them any sustenance at that stage.

I understand that the INTERREG II programme makes certain provisions for assisting people whose lives are disrupted by the introduction of the Single Market. There are provisions for giving assistance to Customs officers who work for the State. I imagine there are provisions also for assisting employees of private operators, the Customs clearance agents. I understand the Government propose a form of retraining which is of no use whatever to the Customs clearance agents. They do not wish to be retrained, they have had their training in business. They are business people and have been acting as such for many years. Most of them want the opportunity to get into business again.

It is incumbent on the Government, who know this has been coming for the past five years, to take action and assist these people in one form or another by compensating them for the loss of business. The loss of business has been brought about by the concerted action of the 12 member states. I am sure that if the Irish Government wish to do so, the INTERREG II programme could be used to assist these private operators.

I tabled questions on the matter in the Dáil last April seeking information on the INTERREG II programme and asked what the Government proposed to do for these people and their employees. The responses I got at the time were such that I decided the Government had not paid any attention to this problem up to that time. It is clear to me now that they have not thought about it.

There is not a large number of these people along the Border corridor but the number is significant. Even if only one person was forced out of his job, by outside agencies, that person should be compensated. I am asking the Government, at this late stage, to examine the position carefully and when they have all the facts before them to decide on a package which will adequately compensate these people for the loss of business.

I hope the Minister will take cognisance of this fact and will immediately ensure that the Government put a programme in place because 1 January is very close. Obviously these people have to make plans for the future. We cannot dump them on the road one morning and hope they will survive; we must ensure that they know in advance what will happen to them and what assistance they can get which will enable them to reorganise their businesses. I look forward to the Minister's response and I hope he will have something sensible to say on this very serious problem.

I wish to apologise on behalf of the Minister for Finance who regrets that he cannot be present in the House to reply to this matter. I realise that the payment of compensation is an important issue.

The objective of the Single Market is to improve the competitive edge of Europe in international markets. The free circulation of goods and people in the Community will help to achieve this objective by reducing the time and costs involved in transporting goods between the member states. However, the removal of customs barriers and formalities as part of the measures to improve the free circulation of goods from 31 December 1992 will affect certain areas of employment such as customs clearance in intra-Community trade. With 1993 on the horizon a number of firms have already started to diversify.

While there are no specific arrangements in place to compensate customs clearance agents directly for loss of earnings resulting from the internal market, there is broad range of training schemes operated by FÁS, as well as advice and grant support schemes from the industrial promotion agencies, which is available to individuals and firms wishing to diversify into other areas of business.

The EC Commission has put forward proposals for assistance in this area both through the existing Structural Funds and through further ad hoc measures. These proposals concentrate on retraining and assistance for developing new businesses and for local development initiatives. There are no proposals at EC level for compensatory grants or income supplements.

The Commission takes the line that it is primarily up to the sector itself and the member states to take the necessary social and economic measures. However, in the light of a study carried out in all 12 member states, the Commission has decided that back-up measures are required at Community level. These back-up measures come under three headings: measures under the European Social Fund, measures under INTERREG and measures outside the Structural Funds, which are the subject of a regulation now before Council.

The operations eligible for ESF support relate to training and job creation. As far as INTERREG is concerned, the Commission has identified four specific areas: restructuring of the companies concerned, retraining and reorganisation of staff, adaptation of goods-handling sites at frontiers and the creation of replacement jobs.

In addition to the above measures, the Commission has included a one-off budget heading of ECU 30 million in the draft Community budget for 1993. These resources are designed to provide assistance for the areas of the Community which are particularly dependent on customs clearance activity and to assist the companies most severely affected to maintain employment through diversification. The measures to assist these companies will include assistance in planning and restructuring, market research and technology transfer, co-financing of conversion investment, diversification and restructuring. A draft Council Regulation to implement these measures is now under discussion.

It is clear from this that the support being made available from the EC through the Structural Funds and otherwise is directed at helping the companies concerned to diversify into new area and helping to retrain the employees affected to assist them in finding alternative employment.

In early July 1992 FÁS contacted the representative organisation of customs agents and offered its services in the area of training. At a meeting on 30 July 1992 in the Department of Finance, it was agreed that a representative of customs agents would liaise with FÁS, in relation to all training-retraining proposals. To date progress has been slow and while work is continuing with some of the larger firms, no project has yet been finalised with FÁS.

The four executive agencies which operate under the aegis of the Department of Industry and Commerce — the Industrial Development Authority, Shannon Development, EOLAS and An Bord Trachtála — provide a range of financial and other services to assist firms These services are fully available to the customs clearance agents.

The IDA are the agency responsible for fostering the objective of regional industrial development, and their programmes for Irish industry operate throughout the country, except in those regions which come under the remit of Shannon Development or Údarás na Gaeltachta. The IDA provide grant assistance to firms in the manufacturing and international services sectors which have specific projects which will increase employment or expand output. The authority also provide advisory services to firms especially in the area of assessing the feasibility of a project. Shannon Development operate a similar range of services for Irish firms located in the midwest region.

EOLAS, the Irish Science and Technology Agency, assist firms to develop, apply and promote science and technology. They provide technical and consultancy services directly to Irish industry with the aim of raising the level of technological competence and competitiveness in Irish industry.

An Bord Trachtála are the agency responsible for the promotion and development of exports. The full range of advice, services and incentives provided by ABT are available to companies involved in customs clearance which wish to diversify into other relevant trading activities.

The agencies will assist in every way possible custom clearance agents who wish to establish projects in the manufacturing and international traded services areas. The IDA are currently advising and assisting a number of such companies by way of feasibility grants. ABT are also involved where appropriate.

I can assure the House that Ireland has made and continues to make every effort to ensure that the proposed EC funding is geared to Irish needs and that the State agencies will provide whatever assistance is feasible through their existing training and industrial promotion schemes.

A number of customs agents' representative bodies and individual nonaffiliated members have met officials of my Department and other Departments and agencies primarily involved on a number of occasions to discuss the proposed EC funding and the assistance which can be provided through existing national schemes. It is envisaged that further such meetings will take place.

That is an entirely inadequate response to this very important issue.

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