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Dáil Éireann debate -
Wednesday, 10 May 1995

Vol. 452 No. 6

Ceisteanna—Questions. Oral Answers. - Raw Material Prices.

David Andrews

Question:

5 Mr. Andrews asked the Minister for Tourism and Trade the steps, if any, he proposes to take to ensure that Irish manufacturers are not disadvantaged by escalating costs of imported raw materials; and if he will make a statement on the matter. [8431/95]

As I and my colleague the Minister for Enterprise and Employment have indicated in recent replies to parliamentary questions on 22 March and 15 March respectively, any increases in raw material prices are part of a general worldwide trend from which Irish industry is not exempt, and, because of the global nature of these increases, I am satisfied that the competitiveness of Irish manufacturers visá-vis their international competitors is not affected.

I understand that the Minister for Enterprise and Employment, who has primary responsibility in this matter, has asked the industrial development agencies to monitor the situation in sectors where the increases have been most apparent, for example the plastics sector. So far, the feedback is that companies are able to pass on the increases to the end user and, therefore, are not being adversely affected. The agencies will continue to monitor the situation and are available to advise and, where possible, assist companies who experience particular difficulties.

I understand my Private Notice Question has been ruled out of order. The Minister might expand on the question he bypassed in his reply in anticipation of the Private Notice Question being dealt with by the Minister for Finance as well as replying to the supplementary question I am about to ask. My question was prompted by clothing manufacturers, specifically those who use raw cotton. Is the Minister aware that the cotton harvest, like coffee and other products, has been hit by frost? Is he further aware that it is anticipated that Levi products, particularly Levi jeans, will cost approximately £100 per unit produced? In those circumstances is the Minister misinforming the House? He gives the impression of having everything under control and that everything in the importers' garden is rosy, but that is not the position. There are serious problems and I would have thought that this was the place to address them. More precise and detailed information should be given on them.

Deputy Andrews referred to Levis. Are they the jeans that built America?

I would like to see them building Ireland, but that does not seem to be the case.

The Deputy will be aware that the responsibility for factors relating to production, such as raw material prices, rests not with this Department, but with the Department of Enterprise and Employment. The semi-State agency, for which the Department of Tourism and Trade is responsible, is ABT and its main focus is on securing and maintaining markets for Irish products. It does not have a role regarding input prices.

I do not want to talk this matter up into a crisis, but will the Minister address the position regarding the disparity between the punt and sterling in the context of our importers and exporters in the light of the failure of the Minister for Finance to take my Private Notice Question on the subject?

We ought not to tax the Minister in possession with responsibilities that are clearly not his and are, on the admission of the Deputy, that of the Minister for Finance.

We have been told that questions put to the Minister are no longer appropriate to him but are appropriate to some other Minister. We have not been getting answers to questions from this Minister for that reason. It amounts to buck-passing, but the buck stops here.

I have answered questions as far as possible having regard to my responsibility as Minister for Tourism and Trade on the circumstances under which the 1992-93 market development fund was introduced, the conditions that obtained at that time and the consequences of introducing it. An Bord Tráchtála held seven regional seminars for industries that might experience difficulties and the Government is concerned and aware of what is happening. However, this is essentially a matter for the Department of Finance. Officials in my Department met the Irish Exporters Association and we are aware of the political concerns they voiced. We have been in contact with the Department and the Minister for Finance about that.

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