No. Not being farmed. I mention these things because the common agricultural policy is a big attraction for all this country. Some people see the benefits direct to farmers; but the income increases, the guaranteed markets and the expansion which is possible and which has been predicted—in spite of what somebody said—to be over 30 per cent, will mean that our economy in total will benefit apart from any other sectors benefiting.
I do not wish to go too deeply into agriculture except to say that the Mansholt Plan, as Senator Keery said, is an intelligent application of social principles. But we are dealing in this publicity that was given to the Mansholt Plan, with people who are totally antagonistic to the enlargement of the European Communities, including Ireland's membership of that. From time to time they grasp emotional matters like the question of land establishment and the Mansholt Plan, which was an attempt to bring humanity to the actual fact of life that people are leaving small holdings.
The Mansholt Plan which was an attempt to bring humanity to that situation, was represented as driving people off the land. There is no attempt to drive people off the land. The attempt is to give them a standard of living; and if what land they have is incapable of doing that for them the attempt is to allow them to continue to live where they are and bring employment towards them. There is no question of the small farmer being badly off in the Communities. All farmers will be better off. These very small holdings which are not viable have the Mansholt Plan more to support the people in a way of life than a protection against the costs of living and the various vicissitudes which arise.
From the point of view of our industry we have reached a stage of the development of our industry, and we have reached it for some time, where protected industry in a protected market of about 3 million people can no longer give the expansion we need. In Europe there is a market of 250 million people. It is a market of opportunity. There is no trade agreement. There is no community we will join that will take care of us if we do not do it ourselves. We have to remember what was so often said by Seán Lemass: "Nobody owes us a living." There is no trade agreement that any Government can make to bring other nations in here, to sustain here a standard of living which we cannot earn by our own work. What the European membership will do for us is that it will open up markets of 250 million people in which our workers and our management should be able to expand and create new employment.
I think that something which may be overlooked is that the availability of this big market—it will be probably the biggest in the world—will be the biggest attraction for new industry and new investment in industry here. I look forward to a big new growth in industrial opportunities and jobs here because of the availability of the market in which people can compete and also because of the incentives which we will be able to continue to give to new industries setting up here.
Apart from those attractions, one of the biggest attractions from the point of view of anybody who has had to deal with a bigger nation, a bigger trading partner, is that there will be rules of trading and that in the Common Market of ten nations the rules will be laid down to apply to the ten nations. For the first time again we should be able to get out from a situation where the bigger trading partner tells you what you can have. Membership of the Community will mean that all partners will obey a set of rules, will be bound by the same rules and, therefore, for a country like ours it is a new element of freedom; it is an economic freedom that we never had before. The prospect of being able to exist with an equal voice in the Community is the prospect of adding to the political freedom which we got 50 years ago, the economic freedom which a small nation cannot have if it is dealing with a big trading partner who can lay down the rules.
These are all the attractions of membership which were seen by us when the decision was made to seek membership in 1961. There have been ten years of discussion and if people do not know all about it, it is perhaps because the negotiations broke down twice. But these negotiations that are on now started in June of last year. Again the negotiations were on the basis that we were not doing a trade agreement with the Community, not giving up concessions to get something from them; we were joining with them in this new idea of uniting Europe and basically uniting Europe to prevent war, so that the people of Europe could come closer together. The fact that in their coming closer together the Community has had one of the greatest success stories in the economic history of the world is an attraction also.
However, we must not forget that the whole purpose of uniting the peoples of Europe is so that they could live closer together and in closer harmony. When we started negotiations the rules were laid down that other countries could apply and could negotiate for membership if they accepted the Treaties of Rome and the decisions already made under the Treaties of Rome in the Community. We accepted those conditions. We would not be negotiating had we not accepted that statement. The other applicant countries accepted it too. For that reason, the Community have held firmly that the negotiations will not attempt to change the Community from outside to suit the applicants, nor would the negotiations mean that any applicant would try to get all the benefits but stay outside of membership or look for permanent derogation.
Therefore, what we have been negotiating on is transitional periods and methods to allow the Irish economy and the economies of the other applicant countries to come in and join with the economy of the European Communities without too much disturbance to the economies of either side. In those negotiations we have found a transitional period for agriculture which suited us and which gives early benefits to the Irish economy and the Irish farmer. We have found a transitional period for industry which phases out the protection we have over a five-year period. In the case of Ireland I sought special treatment. It is important that we should acknowledge it now because at the beginning of the negotiations, at the beginning of our application in 1961, we had to prove that we were developed enough to become members of the Community. We had to prove to the Community that we would be able to catch up with them and that we would not be a burden on them. The beginning of our application, therefore, was to prove our fitness to become members.
Having proved to the satisfaction of the Community that Ireland is developed enough to become a member my task has been to show that in certain areas Ireland is a special case and needs special treatment. Some of this special treatment has been mentioned in the House today. The most important development from our point of view in the negotiations was the agreement reached with the Community on the terms of a special Protocol concerning Ireland which is to be annexed to the Treaty of Accession. I have made the text of the Protocol and the other documents associated with it available to the Members of the Seanad. The agreement by the Community to this Protocol is a positive and clearcut response to the requests, which I made in the negotiations, that the Community should in a formal way recognise that Ireland is faced with major economic and social imbalances, regional and structural imbalances, and that the Community should commit itself to employ all its own resources and all the means at its disposal to supplement our national programmes of industrialisation and economic development. That recognition and that commitment by the Community is given in full in the terms of the Protocol.
The significance of the Protocol is best seen in the context of the basic objectives in our membership. We are convinced that by membership of the enlarged Community we can effectively achieve our economic and social aims, full employment and a standard of living in Ireland equal to that in the rest of Europe. We are convinced that membership will enable our agriculture to at last develop to its full potential and that it will enable our industry to expand outwards to export markets. Apart from the conviction of the benefits of membership, we are fully aware of the problems which the conditions of the EEC will pose for us. We are less developed than the present member states of the Community. We are less developed than the other three applicant countries. Because of this position of being less developed and because of our peripheral position at the edge of the Community we have special problems, and for that reason I had to negotiate for special arrangements.
These special arrangements caused a problem for the Community because they went beyond what the Community envisaged as transitional measures. One example of that is the one mentioned by Senator Belton. The time limit for the industrial transition—five years— is satisfactory for Irish industry as a whole, but it was essential that separate arrangements be made for the motor assembly industry. The motor assembly industry here is in a very special position. It is not a strong well-founded industry, but I put it to the Community that the livelihood of the workers in the industry could be safeguarded by giving this industry a fair opportunity to convert itself into a sound industry. The motor assembly industry here can adapt itself and it can be converted into an industry that does not need any special care. We have an arrangement in the Anglo-Irish Free Trade Area Agreement that the special position of the industry would be protected until 1990 and that anybody importing motor cars would import them in proportion and in relation to the employment maintained in his assembly here. It was a total protection of an assembly industry here.
In the negotiations the Community put it to me that if the assembly industry could be converted into other lines or specialised lines and that they had their specialist information and consultations they felt this could be done in a period of seven years. It is up to the management to see that it is done. It is up to the management and trade unions between them to do it. Seven years seemed to me to be a short time and I negotiated a transitional period which is by far the longest transitional period negotiated by any of the applicant countries. If the management and workers set about adapting the industry right away—I know it can be done but it is not for me to give a lecture about it—to put that industry on a sound basis, the jobs in the industry will be saved. Not only will they save the jobs in it but they will be put on a basis that will not need any agreement in time. I got a transitional period up to 1985 for them; but I know, from what I learned in Europe, that they can put that industry on a basis where the date will not matter. They can go right into the future in confidence that their industry is safe and their job is safe. They can put it on a much sounder basis than the present artificial scheme has it on.
It would be an underestimate of the management and the workers in the assembly industry to suggest that they would not be fit to make the right changes and adjustments over the 13 years which are available to them. I know they can do it and I know that it can be done. It can be done by Irish workers and management.
I touched on this subject because it is evidence of the Community's willingness to do everything possible to protect the jobs and the livelihood of Irish workers. They knew from their own consultants and from their own specialists that seven years would put this industry right. They gave me a transitional period of 12 years because I had to insist on it. We are dealing not alone with what can be done but with what the management and workers there are willing to do. We had to get a longer period and I hope they do it now. Their jobs can be made safe by themselves.
These arrangements are a concrete example of the kind of thinking and intention behind the special Protocol that I received at another negotiation. As Monsieur Brochette was quoted here, he is the EEC Commissioner responsible for regional policy. In Galway last week, he spoke about the Protocol. Ireland has special problems which will have to have special solutions, hence the Protocol. The terms of the protocol recall that the fundamental objectives of the Community lie in the steady improvement of the living standards and working conditions of the peoples of the member states, together with the harmonious development of their economies, by reducing the differences between the various regions and the backwardness of the less favoured regions. The text of the Protocol notes that: The Irish Government have embarked on a policy of industrialisation and economic development designed to bring a standard of living in Ireland up to the level of the other European nations and to eliminate unemployment and even out the differences between the regions.
The Protocol then expresses the recognition on the part of the member states that it is in their common interests that the objectives of the Irish Government's policy should be attained. It also expresses their agreement that the Community institutions should use all the means laid down by the treaties, including the financial resources of the Community, for the realisation of these objectives.
The Protocol, which will be a Protocol to the Treaty, standing as part of the Treaty, will amount to nothing less than a commitment on behalf of the enlarged Community and its institutions, to do everything possible to assist the Irish Government in their efforts to create full employment in this country, to eliminate economic disparities as between our regions, and to achieve a standard of living for our people comparable to that in the other member states.
This is not an empty sentiment. The Six have recognised, by agreeing to a protocol for Ireland, that it is in their own interest to make this commitment to us. As a prospective member—even as a small member—our prosperity can affect the prosperity of the whole European community as it will be. It is clearly in the common interest that any member state should not be a drag on the Community. Each member state should be able to make its full contribution to the development of the Community as a whole, in accordance with capacity and potential.
The Protocol recognises, in particular, with the application of Articles 92 and 93 of the EEC Treaty, which deal with state aids, it will be necessary to take fully into account the agreed objectives of the creation of new employment and the improvement in the standard of living, when the Community is dealing with the State aids which we will be applying to new industry to develop it.
It has now been established that we can continue to operate our scheme of export tax relief. I should like to make it clear that the outcome of our negotiations on this question is that we shall be able to honour the commitments already made in regard to the export tax reliefs, and to continue to grant these reliefs to new firms which set up here to manufacture for export. In due course, it is intended that in the enlarged Community all tax incentives and all industrial incentives, including our export tax reliefs, will come under consideration by the Commission as part of their examination of the whole structure of aids within the Community. These come under Articles 92 and 93. It may be that our aids may have to be modified as a result of the examination. Other places will have to modify, because the peripheral countries and the developing ones, like ours, will always have to have a good advantage. If we have to modify, we have the assurance of the Community that any revised incentive scheme will have to be equally effective in promoting industrial development in Ireland.
I might mention in this connection that Commissioner Brochette made it quite clear in his remarks in Galway that our aids to industry might eventually be modified in form, but not modified in intensity. The Community has also assured us that, if changes ultimately prove to be necessary, there is no question of an abrupt stopping of any particular kind of incentive. Any changes would be made over a suitable transitional period, and with suitable transitional methods. Meanwhile we continue, and can continue, to offer tax reliefs on export profits as an incentive to new firms to establish themselves here and so provide new opportunities for employment in Ireland.
The major outstanding issue mentioned here has been the problem of fisheries. This is also a question with great implications for economic development and the provision of employment opportunities in this country. The number of fishermen employed here is quite small, about 1,800 full-time fishermen, and maybe a total of 5,000 fishermen. For that reason the size of the economic problem may not have impressed outsiders who had not been conscious of the fishing industry, or of the potential here for a big fishing industry. Through the negotiations I have maintained the importance of the prospects here of developing a big fishing industry as well as protecting the fishermen already in existence. Gradually, this realisation has come home to our own people and to members of the Community. It is fair to say that at the Ministerial meetings between the Community and the applicant countries last week, there was a significant movement towards the solution of this very difficult problem. The difficulty arises from the Community point of view in so far as this was a regulation of theirs, an established regulation made by the Community of Six. The applicants had undertaken to negotiate in terms of transitional periods and not changing the rules. However, the day after we started to negotiate, this new regulation was brought in and immediately I protested. We have continued to protest, because of the access phrase on the regulation.
In the regulation, all fishermen of the Community will have access to the waters, right up to the shore, of all member states. The Community now accepts that unrestricted access—free access to our fishery waters—by vessels from other countries of the enlarged Community, is quite unacceptable to Ireland. This acceptance by the Community is a major improvement on their original position. The original position was a fixed one: they said it could not be changed, and it meant free access to the shores. I do not know if it is necessary to repeat here what I have said at every negotiating meeting: that free access would create great difficulties for our fishermen, seriously disturb and be badly detrimental to the conservation of our fish stocks, and would jeopardise the development of a fishing industry here. I put it to the Community that this access provision which was designed for the Community of six was not suitable for a Community of ten with totally different interests in the fisheries sector.
I see a prospect for the development of a fishing industry in Ireland. It is in the early stage of development. Our fishermen are not equipped to compete with the bigger fleets from other countries. These bigger fleets would be there in the enlarged Community. Free access would lead to overfishing which would result in serious depletion of the stocks, and this would be disastrous in the preventing of a fishing industry which is just beginning in Ireland.
The proposals put forward by the Community last week represent a significant advance. They now understand the problem and are anxious to find a solution. The latest proposals put to us do not go far enough. They do not solve the problems I see for fishermen and for the fishing industry. What they have done means we are within sight of a solution which will meet the legitimate requirements of the Irish fishing industry. I will continue to press for a solution to meet the legitimate requirements of Irish fishermen and the Irish fishing industry. I know the applicant countries will strive for a satisfactory solution too.
There is one important difference between the other applicant countries and ourselves. They all have well-developed, sophisticated fishing industries, whereas ours is only beginning to develop and has to realise its full potential. They are seeking protection for fishermen who are already in existence; they are seeking protection so that they will lose none of the rewards their skill brings them. We, on the other hand, are seeking protection for fisheries, not only because of the living it provides for the small number of fishermen I mentioned and the contribution it makes to the economy, but also because of its capacity and potential to develop into a greater source of employment and much more important economic activity than at present.
If we can get a satisfactory outcome —and I think we will—to the question of the access regulation, the Irish fishing industry has a bright future in the EEC. Access to the market of the enlarged EEC participation in the arrangements for the organisation of the market and participation in the arrangements for structural improvement should be a major asset in expanding our fishing industry. It is true to say we can find a solution to our problem of developing a fishing industry as members of the Community much earlier than we could hope to have on a national basis. I am determined to get a settlement which will give these benefits of marketing and structural supports as well as a protection in the area of access to make these useful.
In this way our fisheries will no longer be underexploited but should come out from their position of comparative neglect and make a rightful contribution to job creation and to the economy as a whole. It has taken me a long time to get the negotiators in the EEC to realise that what is at stake in the fishing industry for Ireland is not just 1,800 jobs for fishermen; it is the whole policy of the Government regarding development, the whole prospect of using our natural resources. It is for no small reason I am resisting this regulation on access which would be so damaging as almost to destroy the prospect we have of a fully developed fishing industry.
One important issue which has not appeared in the publicity is animal health. This has been very important from the point of view of negotiators, but has not had the same public acceptance except within special agricultural bodies. This country has been free from certain major animal diseases, such as foot and mouth, for many years and it is the policy of the Government to preserve that freedom from disease. In the negotiations we are trying to maintain our present arrangements, such as veterinary controls on imports of livestock and livestock products. We are also seeking exemption from the Community requirement to vaccinate animals against foot and mouth disease for export to other member states. The purpose of this is to ensure the preservation of Ireland from serious animal diseases.
We have sought exemption from requirements governing the trading of cattle and pigs, noticeably those regarding the testing of animals for tuberculosis and brucellosis prior to export. These requirements of the Community, if applied here, would greatly upset our present livestock production and marketing system, including the relatively free movement of animals between here and Northern Ireland and Britain. There have been detailed discussion at technical level between our veterinary experts and officials of the Commission on the question of animal health but we have not yet had a response from the Community in the negotiations to the request which I have mentioned. This matter will fall to be settled in the coming weeks and I am confident we can make arrangements which will protect our vital interests in relation to animal health.
That is as far as the negotiations have gone. Government thinking has been directed towards the objective of membership of the Community on the best possible terms. Before there were any negotiations, membership of the Community appeared to us the best possible course for Ireland to take. We began negotiations on that basis.
Getting back to the question of giving information at home, it has been difficult for us to make the strong case we will make for membership, if, at the same time we are negotiating and trying to get the best terms from the Community in the transitional period. If you make a speech in Seanad Éireann, pointing out all the marvels of becoming members, you cannot then go to Europe and expect them not to have read the Irish newspapers and not to have any notion that you are getting benefits, but only seeing the difficulties. It has been difficult to give a full picture to the public without interfering with the negotiations. The negotiations are drawing to a close and we will, having concluded them, be freer both physically, in time, and without the inhibition of negotiating at the same time as dealing with information at home, to pursue this question of giving adequate information.
There are all sorts of documents being circulated to the public. Those who were opposed to the enlargement of Europe in different countries have played on extraordinary aspects of people's fears and anxieties. These will all have to be dealt with when we have got the best possible terms for membership and can join the Community in the assurance that we have negotiated terms of accession which will prevent membership of the Community from having the bad effects that it could have. Everyone here who spoke about regional policy realises that if you become part of a big Community, a less well-developed and peripheral part, economic forces are all working against you. There has to be special provision made for a country that is less well-developed or in a transition from agriculture to industry and at the periphery of the Community.
These are the matters which we must deal with in the negotiations. Above all, apart from the negotiations, there must be a commitment in the European Community to fully develop regional policies. There is nothing in their policy at the moment to prevent us from carrying out our own regional policies and indeed supporting them financially and otherwise. It is essential, especially if monetary and economic union becomes part of the European picture, that adequate regional policies be developed to stop ordinary economic forces preventing a country like ours attaining the real benefits which obviously would ensue from membership and which other countries who are members have gained.
If a great deal of work could be concentrated into the next few weeks it could be possible that we would finish the negotiations and sign the agreement before Christmas. Next year we would have to ask the public to decide on it. It will be necessary to go through the Oireachtas with a Bill. Two Senators asked what will the question be. This is being dealt with by the Taoiseach and the Attorney-General's Committee.
The application of the Treaty of Rome to Ireland would require that some of the institutions of Europe in relation to certain aspects of the Treaty of Rome would take the functions reserved for institutions here like our Supreme Court. Our Constitution could prevent the application of the Treaty of Rome to Ireland. Basically this is why changes in the Constitution are necessary. This is a matter for the Taoiseach and he will be dealing with it. Early next year the public will be asked to decide this. Before that we will have concluded our negotiations and we will have another White Paper. I hope that this new White Paper will have the minimum necessary information to make it possible for people to reach a decision. It will make other information available to people. As far as is possible to project into the future we will try to assess the effects of membership and the effects of nonmembership.
We can never opt to stay as we are again. There is now virtually a Community of seven. Britain has made her decision. When they complete their negotiations they can become members. Our trading situation with Britain can never be the same again. The decisions to be made are whether we join a Community with all its advantages, political, economic, social and otherwise, or whether we stay out of a Community and not alone lose those advantages but also have barriers erected between us and the main markets for our farmers and industrialists.