Seanad Éireann debate -
Wednesday, 11 Apr 1962

Vol. 55 No. 6

Imposition of Duties (Confirmation of Orders) Bill, 1962 (Certified Money Bill) — Second Stage.

Question proposed: That the Bill be now read a Second Time.

Minister for Industry and Commerce (Mr. J. Lynch)

The purpose of this Bill is to confirm 17 Orders made during 1961 under the Imposition of Duties Act, 1957, which provides that Orders made by the Government under that Act, imposing or amending duties, must be confirmed in the calendar year following that in which they are made.

Three of the Orders imposed new protection. Eight amended existing duties which experience had shown were either inadequate or were open to evasion. Two others provided for new or increased duties which would come into operation in the event of existing quota or other import restrictions having to be removed. The remaining four Orders provided for reductions in the rates or scope of existing duties. Two of these are consequential on recommendations made by the Industrial Development Authority following reviews undertaken in accordance with the provisions of our trade agreements with Britain.

An explanatory memorandum on the Bill has been circulated to Senators. I shall, of course, be willing to give any further information or answer any questions which Senators wish to ask about the Orders.

Mr. McGuire

I am not in a position to criticise adversely any of the proposals in this Bill, of which there are 17 in all. Our Party is in agreement with the policy as regards industrial development of which these orders are an expression, but in continuing the policy of protection we must all be aware of the position that in the new era which we face with the existence of the Common Market these tariffs and subsidies will have to disappear. I notice that the Order No. 12 which is in the explanatory memorandum replaces a quota order by a tariff imposition. I welcome this action because quotas, generally speaking, come into the category of very highly restrictive and protective methods and they should be retained only in extreme cases. Industries which have to rely on quota protection would appear to have very little hope of survival in a free trade market. Therefore, I feel that it is very important at this stage to exchange tariffs for quota protection in as many cases and as soon as possible.

I take it that the Committee on Industrial Organisation which is studying the position of Irish industry in the context of the Common Market is considering and perhaps advising the authorities here and the Government on the policy that should be taken at present in regard to tariff and protection policy. I see that these tariffs are advised by the Industrial Development Authority, and I take it that it would be in close contact with the examination that is being carried on at present in regard to the future. In other words they are not merely working on past or present policy, but that policy is now being merged into the creation of a new policy for the future which we are going into in the free trade area.

I would also like to say that with the ending of protection now in sight it is to be hoped that those connected with Irish industry, employers and workers, will bear in mind the fact that we are now going into a free trade area and that it is important for both employers and workers engaged in our industrial activities to do everything to make themselves competitive and see that our products will be able to take their place in the open market in quality, design and price. I myself at this year's dinner of the Federation of Irish Industries heard the Minister refer to this very point and I quite agree with what he said. He pointed out that though a large number of our industrialists and workers are aware and show that they are aware of the necessity for efficiency and for girding ourselves for this future market, on the other hand there are signs that there are still quite a large number of both employers and workers who do not seem to be thinking in terms of a free trade market, who are still thinking in terms of the protected market in which we have been working for so many years. If they persist in that form of action and approach they will find that we and they will not achieve the efficiency and ability to operate in the future. The consequence, of course, will be that they will not be able to exist in the future. I would hope, therefore, that any protective measures which are introduced both now and in the future will not be allowed to foster inefficiency or complacency in the employers or the workers. I support the Bill which confirms those Orders.

Mr. J. Lynch

The points raised by Senator McGuire are worthy of some comment. As I pointed out in my opening statement, of the 17 Orders which are confirmed in the Bill now before the House, only three are in respect of new tariffs, and those tariffs refer to new industries. When those tariffs were imposed in respect of these industries full regard was had to the policy outlined in the Programme for Economic Development, that industries that sought tariff protection would be given such protection only if they can show that after a short initial period they can carry on without such protection. That policy has been strictly adhered to in the Department of Industry and Commerce, as reflected by the fact that since the beginning of this year no new tariff has been imposed, while it is true that many tariff applications have been made and refused.

The functions of the CIO are related mainly to an analysis of industries broadly, and of particular industries and particular factories, to discover to what extent assistance can be given by the State, if necessary, for their readaptation, and to what extent these industries may adapt themselves or amalgamate.

The advice of the CIO will be of assistance to us in our negotiations for entry into the Common Market, negotiations in which we hope to have applied to us a rhythm of tariff reductions which will take adequate account of the state of our industrialisation.

As the House is aware, the Taoiseach has stated in his opening statement to the representatives of the Governments of the Six that we will conform to the desire of the Common Market countries to end our tariff reduction regime at the end of the transitional period as now envisaged by the Six, but we would hope within that period to get a rhythm of reduction that will suit our industries.

I take it it will be the function— and I expect it will be done—of the CIO—the Committee on Industrial Organisation—to advise on what industries are particularly sensitive, and on what industries may require special looking after, so to speak, because there is provision within the Rome Treaty for special protocol for some degree of protection beyond the end of the transitional period. It may be possible to find out from the CIO if any such industry exists or if there is any range of industries that might require to be taken care of in that respect. I cannot indicate in advance to any extent whether we will be successful in negotiating such terms for such industries.

As regards the tariff reductions, some are provided for in these Orders, and Orders have been made affecting at least one tariff reduction, if not more, since the Bill was introduced. Therefore they were not appropriate for inclusion in the Bill, but the Industrial Development Authority, which is the successor of the Prices Commission in this respect, has been conducting a serious review of the tariffs as provided for in the Trade Agreements with Britain. At present they have under review a very wide range of commodities which bear tariffs.

I do not think any other points were raised by the Senator which require comment. If there are any other questions I would be glad to answer them.

Question put and agreed to.

Bill put through Committee, reported without recommendation, received for final consideration and passed.