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Seanad Éireann debate -
Wednesday, 31 Mar 1971

Vol. 69 No. 15

Control of Exports (Temporary Provisions) Act, 1956 (Continuance) Bill, 1971: Second and Subsequent Stages.

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

The Control of Exports (Temporary Provisions) Act, 1956, which was enacted for a period of three years and has been renewed at the end of each three-year period, will expire on 31st March, 1971. The purpose of this Bill is to continue the 1956 Act in force until 31st March, 1974.

The Act empowers the Minister for Industry and Commerce to prohibit by Order the export of industrial goods save under a licence issued by him. Such Orders have a life of 12 months only and may be annulled by Resolution of either House of the Oireachtas at any time during this period. Control is at present in force on a range of goods under the Control of Exports Order, 1971, and the Control of Exports (Southern Rhodesia) Order, 1970.

It will be necessary to continue these powers for a further period and to enact the appropriate legislation. Control continues to be necessary for the following purposes:

(a) to conserve supplies of scarce raw materials—for example, scraps metals—for the benefit of home industry,

(b) to ensure that strategic materials are not exported from this country to undesirable destinations or that this country is not used as a base for such trade from elsewhere.

(c) to implement the terms of the Anglo-Irish Free Trade Area Agreement which requires, inter alia, control on exports to the United Kingdom of textile goods containing cotton,

(d) to comply with the mandatory resolution adopted by the United Nations Security Council requiring member states to prevent the exportation of goods to Southern Rhodesia,

(e) to have immediately available a means of dealing with any emergency which might denude the country of essential materials before corrective legislation could be enacted.

For the reasons mentioned I commend this Bill to the favourable consideration of Seanad Éireann.

As the Minister has said, this is a continuance Bill and there cannot be any serious objections to passing it through the House quickly. However, there are one or two points to which I should like to refer and perhaps the Minister might be good enough to deal with them when he is replying.

The Minister referred to the necessity to conserve supplies of scarce raw materials, for example, scrap metals, for the benefit of home industry. We would all agree that that is a very desirable provision. I should like, however, if the Minister would give us some indication what effect this provision is having on the price of scrap metals in this country. As we know, there is only one customer for scrap metals, Irish Steel Holdings, and it has been suggested that if scrap metal merchants were free to export scrap metal that they would be successful in getting a better price. I do not know if this is a valid contention but perhaps the Minister could touch on this point in his reply. It is obviously desirable that priority would be given to our own steel industry, Irish Steel Holdings. I do not think any Senator would be in favour of any action that might leave them short of their raw material, scrap metal. In that regard I should like to ask the Minister if, having regard to the fact that it is possible to import scrap metal into this country, is it not also possible to consider a quid pro quo arrangement whereby in certain circumstances scrap metal could be exported?

The Minister also said these powers were necessary to ensure that strategic materials are not exported from this country to undesirable destinations or that this country is not used as a base for such trade from elsewhere. I should like to ask the Minister what are regarded as strategic materials in this context and, as far as this country is concerned, what strategic materials are involved and what are undesirable locations? Does this provision in any way interfere with the legitimate import-export trade in regard to any raw materials in this country? What would be the position if and when we become a member of the Common Market? Can this provision still stand or, in the event of Ireland becoming a member of the Common Market, will these provisions all go by the board and will we then be in a position of not being able to harbour or conserve strategic raw materials for use in this country?

Most important, to my mind, is the Minister's statement that these powers are necessary:

To implement the terms of the Anglo-Irish Free Trade Agreement which requires, inter alia, control on exports to the United Kingdom of textile goods containing cotton.

When this Bill was first introduced in 1956 nobody at that time anticipated the signing of the Anglo-Irish Free Trade Agreement and obviously no provision could have been made to safeguard against the results of that trade agreement. I should like to suggest that the terms of that agreement, particularly in regard to the textile industry, the boot and shoe industry, and other sensitive industries, have worked very adversely as far as this country is concerned. Are we to stand idly by and take no action whatever to protect the textile and boot and shoe industries, which employ a very substantial number of trained Irish workers? I think that the terms of the Anglo-Irish Free Trade Agreement need to be radically revised. There is, as the Minister is aware, a provision in the agreement whereby up to 3 per cent of the total value of imported industrial goods can be protected. I would suggest to the Minister that the time is now more than opportune when that particular clause should be invoked to prevent further deterioration in the position of the textile and particularly the boot and shoe industries, which are located mainly in areas outside the city of Dublin and have consequently had a very adverse position in regard to employment in these areas. The trouble with the Anglo-Irish Free Trade Agreement is that so far it seems to have had two effects contrary to what——

An Leas-Chathaoirleach

I would point out to the Senator that there is limited reference in this Bill and in the Minister's speech to the Free Trade Agreement and I doubt if it would be appropriate to open up a discussion on the general merits.

Very well. I wish to make the point that we in this country have been scrupulously considerate in carrying out our obligations under that Anglo-Irish Free Trade Agreement but contrarywise the British on a number of occasions have taken unilateral action to protect their own interests. I feel that somewhere in this particular Bill, which seeks to extend and protect the provisions of the Anglo-Irish Free Trade Agreement, it should be possible to take unilateral action if necessary to protect our interests. I will not develop the point any further. Perhaps the Minister in his reply will deal with that point because it is one that is causing a considerable amount of concern in the country today.

We have no option but to comply with the mandatory resolutions to which we subscribed in the United Nations Security Council to prevent exports to Southern Rhodesia. I should like to ask the Minister what is the position with regard to exports to South Africa? Does the same apply there or, indeed, to any other country, or is Southern Rhodesia singled out as the only country to which this mandatory resolution applies?

Finally, the Bill makes provision for dealing with any emergency which might denude the country of essential material before corrective legislation could be enacted. I should again like to ask the Minister what are regarded as essential materials? Is any national stocktaking carried out at regular intervals in regard to such essential raw materials as energy fuels, metals and metal products, grain, foods, et cetera which could be in short supply in the event of any sudden emergency? I wish to make the point that, while this legislation is desirable, legislation of its very nature is slow to be put into effect; and it seems to me it would be closing the door after the horse had bolted if, in fact, a sudden emergency, like the one that happened quite recently in regard to the supplies of oil from the Middle East, were to happen and we did not have sufficient stocks of essential raw materials in the country. Introducing legislation at that stage would serve very little purpose.

In view of the measure of Anglo-Irish co-operation which is intended to be written into the Anglo-Irish Trade Agreement is there any arrangement for joint action with the British Government in the event of a sudden shortage of essential raw materials? I am sure that a number of Senators will recall the question of tea supplies during the last war when we were faced with a very serious shortage of tea imports due to the fact that up to the outbreak of war all our imports of tea came from British tea houses. As soon as possible after the war legislation was introduced by the then Minister for Industry and Commerce, Mr. Lemass, to ensure that imports of tea came through Irish sources from then on. I should like to ask the Minister what proposals, if any, for joint action exist for the sharing of essential raw materials between Great Britain and ourselves in the event of a sudden shortage.

I do not think that there are any other points I wish to make and perhaps the Minister, when he is replying, will be kind enough to deal with those I have mentioned.

I also support this Bill. This creates the impression of rushed legislation. The purpose of this Bill is to continue the 1956 Act until 31st March, 1974. I notice that No. 4 on the Order Paper is a motion in the name of the Leader of the House asking Seanad Éireann to concur with the Government in a request to the President to sign this Bill earlier than the fifth day after the date on which the Bill shall have been presented to him. To my mind, this is not the proper way to deal with legislation of this kind.

We can all accept paragraphs (a) and (b) of the Minister's speech. I was very disappointed, a Leas-Chathaoirleach, when you ruled out of order any references by the previous speaker, Senator Russell, to the Anglo-Irish Free Trade Agreement, especially when one of the industries referred to here, the textile industry, is having a very rough time.

An Leas-Chathaoirleach

I should like to point out that I was careful not to rule out references to the textile industry, with which we are concerned in this particular Bill, and to the general merits of the Anglo-Irish Free Trade Agreement.

I am glad we are allowed to say something on the textile industry. As I have mentioned, this industry and those employed in it are having a rough time. It is obvious that the effect is being felt because of the terms of the Anglo-Irish Free Trade Agreement. I am sure it comes as a surprise to a number of Senators, as it surprises me, that we are asked in this Bill to endorse something which is having such an effect on an industry on which so many people depend for their livelihood.

With regard to paragraphs (d) and (e) of the Minister's speech, I am sure that when the 1956 Act was passed or even when it came to be continued at the end of the third and sixth years, there was perhaps no reference to Southern Rhodesia. Like Senator Russell, I wonder why South Africa is not included with Southern Rhodesia. This again appears to show the influence the United Kingdom have with the United Nations inasmuch as pressures can be put on a country because they happen to declare a UDI or, in other words, disturb the relations they had with the British Commonwealth. Having said that, it is only right and proper that the Minister should be given these powers, especially in relation to (a) and (b), to conserve supplies of scarce raw materials for the benefit of home industry and to ensure that strategic materials are not exported from this country to undesirable destinations or that this country is not used as a base for such trade from elsewhere.

Senator Russell rightly pointed out that this is continuance legislation merely ensuring that the original Control of Exports (Temporary Provisions) Act, 1956, would be operative over the next three years. This is something the House should bear in mind. This is enabling legislation to continue something that has already been in existence for quite some time. The House is not being asked to create some new type of situation.

Perhaps it might be as well for me to comment on Senator J. Fitzgerald's reference to rushed legislation. Because the Seanad did not sit last week, I asked the Leader of the House to put No. 4 on the Order Paper because the Act expires on 31st March. I was rather worried during the course of the earlier discussion on the Order of Business that something might happen that would have prevented the Act being continued. It would have been improper of me to intervene at that Stage, as the Seanad will appreciate.

Should we not see that the Seanad meets as often as possible so that business may be discharged?

The Act has not been changed. Both Senator Russell and Senator Fitzgerald appreciated the necessity for maintaining this legislation in order to conserve our scarce raw materials. Senator Russell raised the question of the price of scrap. It is a fact that, due to the monopoly that exists here whereby Irish Steel Holdings Ltd. are the sole users of scrap, the price of scrap here is cheaper than it is across the water. This is part and parcel of why Irish Steel Holdings Ltd. are economically successful at present. Certainly, if the export of scrap were to be allowed, scrap dealers would get a higher price in the UK with the result that Irish Steel Holdings Ltd. would need to seek supplies from abroad and would be placed in a situation whereby they would be less competitive and certainly more vulnerable and less successful than they are at present.

As Senator Russell knows—he contributed to the debate in the House recently on Irish Steel Holdings—it is an expanding industry and going reasonably well at present. The Senator spoke about the price of scrap. There has been criticism about variations in the price paid by Irish Steel Holdings to various clients. This is a matter which has now been referred to the Fair Trade Commission and I understand that the parties who referred this matter to the Commission have been notified that it is expected that investigations into their complaints in this regard will commence in two to three months time.

With regard to this question of strategic materials, the necessity for the regulations as spelled out in (b) is not too obvious, but there is a long list of strategic materials which are agreed on an international basis. We have firms like Irish Explosives Limited, Enfield, and Core Memories Limited, Coolock, turning out items which come under that heading. It is necessary to have enabling legislation to prevent the export of some of their produce to undesirable countries. This ties in with paragraph (d) where we comply with the mandatory resolution adopted by the United Nations Security Council in 1968 requiring all member states to prevent the export of goods to Southern Rhodesia and, as far as strategic goods are concerned, to South Africa.

It was perhaps a little unfair of Senator Fitzgerald to talk about the influence of the UK in this regard If we are members of the United Nations it is only right that we should abide by their rules. Our own representatives contributed to the debate on that resolution. Therefore, it is only right that we should adhere to it. Again in 1963 and in 1964 resolutions were passed by the United Nations Security Council calling on all member states to prohibit the sale and shipment of arms and military supplies to South Africa. This is covered in the provision ensuring that strategic materials are not exported from this country to undesirable destinations.

The legislation is broad and goes beyond the points dealt with here. I refer Senators to section 2 (2) of the principal Act, the Control of Exports (Temporary Provisions) Act, 1956, under which the Minister:

may after consultation with the Minister for External Affairs, by order prohibit, subject to such exceptions, if any, as he may think proper, the exportation of goods of any specified description to a specified destination, save under and, in accordance with, a licence

This section is so broadly based that it enables the Minister to take any action at short notice.

Senator Russell referred to a continuous survey and instanced the case of the State moving in to prevent the export of oil in a given situation. That section of the Act covers the point I made in paragraph (e) of my speech:

to have immediately available a means of dealing with any emergency which might denude the country of essential materials before corrective legislation could be enacted

The 1956 Bill was prepared on the basis of its being a Temporary Provisions Bill lasting for three years. A Bill similar to the one before the House had to come up again in 1959, 1962, 1965, 1968. As I said, the Act continued in force for a period of three years and then expires. This is why it is necessary for me to get this Bill through completely this evening. Reference was made to the provision in the Anglo-Irish Free Trade Area Agreement providing control on exports to the United Kingdom of textile goods containing cotton. This arrangement ensures a guaranteed market for our producers for a certain amount of cotton exports. If we had not this arrangement, it is possible and likely that the volume of exports of our goods containing cotton might be less than it is at present. It is a satisfactory arrangement from our point of view and we are anxious to maintain it. Of course, there is a wider issue in regard to the Anglo-Irish Free Trade Area Agreement. Both Senator Russell and Senator Fitzgerald spoke about the effects of the agreement on our exports. The Government do not agree with the general case being made by the Opposition, who are blaming the recession in exports on the Anglo-Irish Free Trade Area Agreement. But, in deference to the Leas-Chathaoirleach's ruling, I do not wish to involve myself in a debate on that subject which does not come within the ambit of this legislation.

I think I have dealt with the points that have been made. If the Senators are not satisfied with any aspect of the reply, they could raise the matter on the Committee Stage.

May I ask the Minister two questions? First, what are regarded as strategic raw materials and, second, is there any national stocktaking in regard to these raw materials? I made the point that, if we were out of stocks, legislation would not be very effective. Have any plans been made to take general stock of these materials from time to time?

In that regard I did say there was a pretty extensive list of strategic raw materials. Typical examples of these are electronic and precision instruments, such as navigation and direction-finding equipment, radar, detection and tracking equipment and jambing apparatus. I endeavoured, when replying, to deal with Irish made strategic materials such as the products of Irish Explosives Limited, Enfield, and of Core Memories Limited, Coolock. I referred only to those because I did not want to bore the House with a long list. Senators will note that I said in my introductory remarks that we were taking this power to ensure that strategic materials are not exported from this country to undesirable destinations or that this country is not used as a base for such trade from elsewhere. We could have various items coming through for export to undesirable destinations, unless we avail of these powers to prevent it.

The Senator asked whether we had made a survey. He said it would be too late when an emergency had developed to make the necessary order. He quoted the example of oil supplies in relation to a particular situation. The Department of Transport and Power have a continuing assessment of that situation. But I could not visualise a survey team constantly having to examine all supplies which might become scarce in an emergency. Both myself and the Minister for Transport and Power have constant information about supplies of essential items and it is unnecessary to set up a survey team in anticipation of an emergency situation.

I only had in mind the men who administer the bigger bulk materials such as oil.

Question put and agreed to.
Agreed to take remaining Stages today.
Bill put through Committee, reported without amendment, received for final consideration and passed.
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