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Dáil Éireann debate -
Thursday, 18 Feb 1993

Vol. 426 No. 3

Ceisteanna-Questions. Oral Answers. - Industrial Policy.

Martin Cullen

Question:

2 Mr. Cullen asked the Minister for Enterprise and Employment his views on whether the creation of a separate Department of Foreign Trade undermines the central thrust of the Culliton report, and substantially weakens the ability to implement the Culliton report in full and that it is essential that the foreign trade aspect of the Department of Tourism and Trade be returned to his Department immediately; and if he will make a statement on the matter.

In systems of collective Cabinet Government and more particularly in a partnership Government, there is a co-operative and mutually supportive effort by different Ministers to achieve, cohesively shared goals. It is true that the Culliton report advocated a market-led industrial policy. Equally, it emphasised that competitiveness is influenced by many public policies and actions other than industrial policy. It advocated a broader approach to attaining competitiveness which would make policies for industry, enterprise and jobs a priority for all Ministers and Departments. That is the approach of this Government and the Minister for Tourism and Trade, as much as any other Minister, will be a partner in Government to achieve a competitive, market-led industry policy. I am happy that we have such shared aims and endeavours.

Far from weakening our employment creation effort, exports and trade are the life-blood of a country whose exports constitute a greater percentage of GNP than other countries in the European Community with the exception of Belgium and Luxembourg. Our ability to maintain and create jobs here at home depends above all in being able to produce goods at competitive prices for export. In view of that the trade, export and marketing elements are of critical importance and we downgrade it at our peril. We are above all a trading nation and, in view of this, is it entirely logical that trade should be picked out and given a special emphasis?

I congratulate the Minister on his appointment and wish him well.

The Minister concurs with the thrust of my question when he recognises that nowhere in the Culliton report is there a mention of splitting up the functions to which I referred in my question; the opposite is the case. Would the Minister, therefore, accept the integration on a more focused way of the functions of An Bord Tráchtála and the IDA in particular with regard to what they identify as the weaknesses in indigenous Irish industry, marketing, research and development functions? The Minister has placed them under a separate Department thereby further dissipating the whole thrust of what Culliton is about. I am at a loss to know how this can directly contribute to the creation of jobs. Would the Minister enlighten me further on that?

This House broadly welcomed the Culliton report and shared the thrust of all its recommendations. There are different ways those recommendations could and will be implemented. This administration formed the view that a separate focus on foreign trade was essential, having regard to the statistics to which I referred earlier. To do that does not mean in any way that one Department will be in competition of a negative kind with another. I am quite satisfied that my Department, and the Department of Tourism and Trade, will be able to combine the best elements, as set out in the Culliton recommendations, to ensure that there will not be any adverse or negative results such as are feared by the Deputy.

Would the Minister accept that he is now, in a convoluted way, gaining responsibility in these areas? Focused and collective responsibility will be spread so far that the clear thrust of what I am talking about — all our energies in a specifically focused way, particularly how we utilise our State agencies — will be further dissipated by what is happening. Would he agree that this was attempted in 1982 by the British Government who abandoned it within two to three years? Would he accept that the best way to proceed is through our embassies beefing up their commecial sectors which is the way the most successful countries operate in terms of foreign trade relationship? The Minister has linked foreign trade to tourism which does not make any sense.

I disagree with the Deputy. I am certainly not going to assume responsibility for the failure of successive British Governments.

I use it as an example.

There are many examples from which we could learn from the failures of the British Government. I do not believe in this instance that what is proposed by us will lead to the sort of failure to which the Deputy refers. On the contrary, given the scarce resources we have there is a great logic in promoting the image of Ireland from a tourism point of view and our foreign trade under the one Department. There is an economy of resources that can be utilised there and it is a sensible division of tasks within the collective responsibility of a Government.

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