This Government make no apology to anybody for their policy of protection introduced in 1932. We are convinced that without that policy the degree of industrial employment now available in the country would not be available and that policy was implemented, the country and the world knows, in the teeth of fierce opposition from Senator L'Estrange's party. I do not want to be too hard on him. He likes sticking his neck out and I must give it a slight chop, if not chop it off altogether, if he does stick it out.
I should like to remind him that every country in the world has a system of tariffs and were it not for that there would be no necessity at all for the Common Market, the European Free Trade Association, or would there be any necessity for this Kennedy round exercise. Other countries have as formidable tariffs as we have but having regard to the world-wide movement now towards freer trade we shall have to take similar steps. If the Government put all their eggs in one basket they have been considerably assisted in placing the eggs there by the Fine Gael Party, and, indeed, by every thinking person in the country because I think it was the desire of everybody that we should at the earliest possible time accede to the European Economic Community. Unfortunately, circumstances have altered that. If our application had been accepted together with those of Britain, Norway and Denmark, it is probable that we would perhaps at the beginning of this year, or certainly hardly later than next year, find ourselves in the position of compulsorily having to reduce tariffs and to extend or eliminate quotas.
Nevertheless, the breakdown in the British negotiations for entry to the Common Market is not conclusive that Britain or the other three applicant countries whose applications have not yet been negotiated will be precluded from entry for all time. Anyway, the belief is currently held that Britain may well reapply in two years and may at that stage become a member of the European Community. If she does we hope to become a member too.
I do not have to go into the reasons why we did not seek membership of EFTA. I think these reasons are well known and widely appreciated by our people. I need only say in regard to that that we have now practically all the industrial advantages that Britain's partners in EFTA would enjoy after the end of the transitional period when tariffs would have been removed, and, secondly, the EFTA agreement takes no account whatever of agricultural goods and that in particular was the attraction which the European Economic Community had for us over and above EFTA. But, in the meantime, these two organisations have proceeded at a fast rate to reduce their tariffs. EFTA has actually outbid the Common Market countries in that respect in so far as eliminating tariffs in about two years' time.
This Bill intends to deal with quotas. As Senators know, there are three main means of protection—(1) to prohibit goods coming in altogether; (2) to prohibit goods coming by fixing quotas; and (3) to prohibit goods coming in from outside countries except on payment of tariff. The first is the extreme protection. Quota protection is secondary in its effectiveness and tariff protection is third. The European Economic Community countries have already abolished quotas and the probability was that had we gained admission as from the 1st January last, as we had hoped, then we would have had to eliminate our quotas immediately. In anticipation of that, we replaced these quotas by tariffs which would have to be progressively reduced once we were members of the European Economic Community. When the British negotiations were broken off, the Government reviewed the situation, and having already decided that quotas should disappear not later than the end of this month in fact, decided to eliminate quotas only where it was shown that the industries concerned could stand the abolition of these quotas and have sufficient protection by a tariff which would replace it. The removal of quotas was discussed with the industries affected and they agreed. The extension of the quotas by 10 per cent which, as I said, corresponds with the 10 per cent reduction in tariffs was also discussed with the industries concerned. In reply to Senator Desmond, I can say that practically in every case we got a full or reasonable measure of agreement, and in only a few cases was any apprehension expressed. I can assure the Senator and the House that very careful consideration was given to any action taken in this matter before it was taken to ensure, first of all, that the interests of the workers in these industries were safeguarded and, secondly, that the interests of the investors in these industries were safeguarded.
With regard to Senator Fitzpatrick's point on the purchase of helicopters by the Department of Defence from France, I am afraid I have no detailed knowledge except I believe that the advisers of the Department of Defence in this matter gave the best advice possible; I presume that, having regard to quality and price, they found the best bargain in France.
It is true that we have an adverse balance of payments with France but it is not so important. It is important but not extremely important that we should balance out between ourselves and every other country. What is important is that we should have an overall balance of payments with regard to our visible trade and our invisible exports. That I think has been achieved satisfactorily in recent years.
In so far as there has been a trend shown of imports from certain countries increasing considerably, we have in the Oireachtas taken recent steps by way of the Restriction of Imports Act to ensure that State trading companies, which are numerous, of course, behind the Iron Curtain, will not have a free hand in exporting to this country to an extent that will make our balance of payments with them go completely out of hand. We find that even without any action being taken under the Restriction of Imports Act the imbalance has been remedied in many cases. We have had a very effective instrument but, as I have said, in the case of any country from which we import necessary goods, if they do not buy a reasonable quantity of goods from us which we are in a position to export and which they would normally import, then we can make Orders under that Act.
