I move:—
(1) That sub-section (1) of Section 1 of the Finance (Customs and Stamp Duties) Act, 1929 (No. 5 of 1929), shall, in respect of woven tissues imported into Saorstát Eireann on or after the 23rd day of May, 1929, be construed and have effect as if the words "two shillings and sixpence" were inserted therein in lieu of the words "one shilling and sixpence" now contained therein.
(2) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
Deputies are aware that there was a considerable amount of discussion as to the effect of the woollen tariff on the ready-made clothing manufacture which has grown up, and which has been stimulated as a result of the tariff on apparel. Representations were made by the Wholesale Clothing Manufacturers' Association, through their advisory committee, and the matter was referred to the Tariff Commission, who made a report which I hope will be in the hands of Deputies this evening. The difficulty which the Tariff Commission were up against in fixing the exemption limit for cloth in their original report was the point at which it should be fixed. It was admitted by the representatives of the woollen manufacturers who went before them that the very cheapest cloth would not be made here, but the Tariff Commissioners found that there were certain firms here which were making cloths, at any rate of a fairly cheap variety; that there were firms in the Free State which were making use of reclaimed wool in the manufacture of cloth, and that as a matter of fact a firm had installed a rag-pulling machine. They were anxious to fix the exemption limit low enough to encourage manufacturers who were inclined to develop that particular end of the business to proceed, with the result that they recommended in their original report that the limit should be 1/6, that cloth over 1/6 should be liable, and that cloth valued at 1/6 or under per square yard should not be liable to duty.
They have considered the representations of the wholesale clothing manufacturers and the views expressed by the representatives of the Irish Woollen and Worsted Manufacturers' Association, and as a result of that further consideration they are satisfied that cloths valued at 2/6 per square yard, or about 4/- per trade yard, should not for the present be liable to duty. The manufacturers have admitted that for some time ahead they will not be able to supply cloths of that value, and while in certain lines of business the wholesale clothing manufacturers would still have a fair margin of protection, in some other lines of business, if they had to pay duty on the cloth which they use, they would not have the margin of profit which is necessary to carry on business. The recommendation of the Tariff Commission is that the extension of the exemption should be for a period of five years only, and at the end of the five-year period we should revert to the original limit of 1/6 per square yard. It is one of these matters which the Tariff Commissioners indicated they found it extremely difficult to make up their minds about. It is one of the matters in which it is exceedingly difficult to get entirely reliable evidence. Different people who have been before them at different times have slightly differed in their views. For instance, the woollen manufacturers began by stating in the first instance that if the tariff were granted the whole needs of the consumer could be supplied. Then a little later they said that at the end of one to one and a half years they would be able to meet every class of stuff that would be required to clothe the people of the country. Later on they said that they could not manufacture cloth for ready-made clothing for sale at 1/6 or 3/- a yard. Now their admission is that, for some time at any rate, they will not be able to produce the cloths for the ready-made clothing trade. The alternative, therefore, that the Tariff Commission had before them on reconsidering the matter was to decide whether they would recommend some raising of the exemption limit, or recommend an increased duty on ready-made clothing. They have recommended that there should be for the five years' period an increase in the exemption limit from 1/6 to 2/6.