The main purpose of this Bill is to provide for the quantitative regulation of imports to the Saorstát by the institution of a quota scheme somewhat similar to that operating in the majority of European countries and in respect of some classes of products in all countries. The main reasons why these powers are necessary are twofold. Firstly, to enable us to institute a system of protection for native industries, in certain circumstances preferable to the system of customs duties and secondly, to enable trade agreements to be made with other countries in a manner beneficial to the Saorstát. When I say that the institution of a quota system here will enable protection to be given to native industries in a manner preferable to the system of protective tariffs I must not be taken, as certain people have taken me as saying, that a system of protection by customs duties has not proved satisfactory. There are certain classes of goods in respect of which a quota system could not apply and which if manufactured here and it was decided to foster the industry could only be dealt with by a system of customs duties. There are other classes which can be more satisfactorily dealt with by a quota system —in the main these which are required in quantity by our people but which are not yet being produced here on a sufficient scale to supply our requirements. Heretofore, we have adopted a rough and ready system of imposing a customs duty and taking power to admit imports under licence. Under that scheme, we were able to regulate imports to the quantity required in an effective manner.
While that scheme has worked fairly satisfactorily it is obviously desirable there should be substituted for it a more regular system, though there has been no serious complaint made about the present system. With a customs duty and a licensing clause a wide discretion has to be taken in respect of persons to whom licences are issued, the class of goods, and the times at which imports might take place. Certain people who were refused licences either for the quantity or at the time they required them naturally felt aggrieved and are sometimes inclined to think they are not getting equal treatment to others. It has been a remarkable fact that despite the number of customs duties with licensing clauses attached and the extension of the licensing system there have been very few complaints, but whether these complaints are numerous or nil it is, in my opinion, better that we should have a system based on an Act of Parliament which sets out the persons to whom licences may be issued, the quantity of goods, and the times at which they may import, and containing an assurance that the conditions applying to one person shall be made to apply to all. I will deal later with the actual provisions of the Bill but I want to stress that fact as there appears to have been some misunderstanding in that connection.
Secondarily, and in a sense of equal importance is the intention to use the Bill for the purpose of securing arrangements where possible with other countries for reciprocal trade. Under present circumstances, in the efforts which have been and are being made to open up new channels of trade and generally to secure preferential conditions for the Saorstát from foreign countries we have found ourselves considerably handicapped because we had not got similar powers to those possessed by foreign Governments with whom we were dealing. International trade has become largely a matter of barter. One country agrees to take a certain quantity of defined goods on condition that the other country will take a stated quantity of defined goods from it. That system has been roundly condemned by many international conferences and by people claiming to speak with authority on general grounds. When however we came in contact with other Governments on trade matters we found the absence of a quota system here meant that we were unable to enter into binding commitments in respect to the volume of trade that might be secured to any one country in respect of any class of goods. The manner in which the power conferred by the Bill will be exercised under any circumstances must be one for determination by the Executive Council for the time being, but the Bill provides that the Orders made by the Executive Council under the Bill will remain valid only for six months unless they are approved of by the Dáil. The provisions of the Bill itself are quite clear. When it is decided to bring any class of goods subject to a quota system an Order is made by the Executive Council called a Quota Order the effect of which is to prohibit the importation of the particular class of goods into the Saorstát except under licence. In the period of six weeks following, licences to import are issued at the discretion of the Minister for Industry and Commerce.
It is necessary to have a six weeks' interim period of that kind for two reasons. It is inevitable that goods of the class prohibited should be in transit at the time the Order was made and it is undesirable that traders should be put into a difficult position of being unable to import goods which are actually in transit at the time of the making of the order. It may be true that in respect of certain goods six weeks may not be considered an adequate period, but when such difficulties arise they can be overcome by the manner in which the quota for the first period is fixed and the duration of that period. During the six weeks period a register of importers of the goods concerned is prepared. Any person who comes within the categories set out in sub-section (2) of Section 7 can apply and must be placed on this register. Nobody, except for the reasons set out in Section 7, can be denied the place in the register. When that register has been prepared the Executive Council makes another order fixing the duration of the first quota period and the quantity of the goods that is the quota which will operate for that period.
When that order has been made, and the persons on the register know the quantity of goods, they then make application to the Minister for Industry and Commerce for licences to import goods under the quota, setting out in their application the quantity of the goods they desire to import. When these applications have been received the following happens:—In the first place, if the total quantity of goods applied for by all importers is 75 per cent. or less of the total quota, then every person receives a licence for the total quantity of the goods applied for. If the total quantity of goods applied for exceeds 75 per cent., but is less than 100 per cent., then every person, at the discretion of the Minister, either receives a licence for the full quantity for which he has applied, or licences are reduced pro rata, so that the aggregate of the goods licensed will be 75 per cent. of the quota. If the total quantity applied for exceed 100 per cent., then the Minister is given discretion to reduce the amounts and to issue licences to the applicants for such quantities as may be considered reasonable, having regard to the interests of the person engaged in the business of importing such goods prior to the date of the Order. In other words, it is intended that if the total of all the applications for licences exceeds 100 per cent. of the quota, consideration will be given to persons who are ordinarily engaged in the business, and they will receive preference over those who are going into it for the first time. Objection might be taken to that principle on the ground that it was establishing a vested interest, but no other system is practicable where only a limited quantity of goods can be imported. It is quite clear that every person desiring to import might apply for the whole quota in the hope that they would get substantially more than they required and would be in a position to barter the licence to others for a consideration and it is obviously undesirable that that should happen.
The circumstances are, therefore, that where 75 per cent. or less is applied for everybody gets what they apply for; over 75 per cent. and less than 100 per cent. everyone gets either the amount applied for or that amount reduced so as to keep the total at 75 per cent. and in cases where the total of the applications exceeds the quota then the Minister has power to reduce the quantity to each applicant, having first regard to the interests of persons ordinarily engaged in the trade or business of importing these goods. It is clear that when a quota is fixed licences may only be issued for 75 per cent. of the quantity specified in the quota order, so that there will be a certain amount of elasticity in the event of consumption or demand exceeding the quota. It is deemed desirable to have that margin so that the quantity can be increased during the quota period otherwise than by making an additional quota in respect of any quota period. The Minister will have power to increase the quota, but not to decrease it.