All I am asking for, and am entitled to ask, is that the usual practice be followed.
In introducing the Estimate for the Department of Industry and Commerce, I want to refer to the circumstances in which a reprint of the Estimate was issued to Deputies after they had been presented with the printed volume of Estimates for the year ending on the 31st March, 1950. The Government, after consideration, decided it would be appropriate that the administrative responsibility for matters connected with the procurement of wheat supplies from abroad should be exercised by the Minister for Agriculture, who is, of course, the administrative authority in connection with the home production of wheat. It was a natural consequence of this decision that the Government should also decide that the administration of the subsidy on flour and wheatenmeal should be transferred to the Minister for Agriculture.
The transfers took effect as from the 1st April last and the sum of £6,871,000 for the payment of flour and wheatenmeal subsidy in the current financial year was taken out of sub-head J in the Industry and Commerce Estimate and put into the Estimate for Agriculture. There are other changes in the Industry and Commerce Estimate for the current financial year as compared with that for the previous year. It was decided during 1948 to transfer the service for the issue of health embarkation certificates to the Department of Social Welfare, to which it is appropriate, and the Estimate for that Department contains the provision for this service in the current year. The provision for certain services formerly conducted by Bord na Móna has been discontinued and I will mention later the reasons for this discontinuance.
In the column showing the provision made for various services in the financial year 1948-49, there has been an addition of £26,980 in respect of increase in Civil Service remuneration which has been transferred from the separate Vote for that purpose which was passed last year by the Dáil. Excluding the provision for flour and wheatenmeal subsidy, and taking account of the other changes affecting not only the current year, but last year, the Estimate which I am now presenting to the Dáil shows a net decrease of £3,735,965 as compared with last year. There are decreases in practically every sub-head of the Vote, and, in the course of my remarks. I will deal with the principal items.
The Estimate includes provision, mainly under sub-head A, for the salaries and expenses of the Statistics Branch of my Department. The Government have decided that, as from the 1st June, a central statistics office is to be set up which will be attached to the Department of the Taoiseach; and they have made an Order transferring my functions in regard to statistics to the Taoiseach as from that date. Deputies will have an opportunity to discuss the matter on an Estimate for the new office which will be introduced shortly. For accounting convenience, it has been decided that the Department of Industry and Commerce will pay the salaries and certain other expenses provided in the Estimate for Industry and Commerce for the current financial year and will account for that expenditure.
Notwithstanding the increases in Civil Service remuneration which were authorised last year, the Estimate this year shows a small decrease in the provision for salaries, wages and allowances. Though the permanent activities of the Department tend to increase, there has been a reduction in the staffs due in the main to a curtailment of those services of a temporary nature which were introduced to cope with emergency conditions. The emergency necessitated the introduction of special measures of control over the importation, exportation and distribution of essential commodities. I share to the full the desire of those who wish to see these emergency controls removed, and I have arranged that those controls which still remain will be subject to a continuous process of examination so that they will be removed immediately the need for them has passed.
As a result of this examination, a number of controls has been either removed or substantially modified in the past 12 months. I will mention only the abolition of soap rationing, the relaxation of export control, and the easement in the arrangements for the distribution of petroleum products. Unfortunately, many controls must necessarily be retained for the time being, at any rate. Many essential goods which were scarce during the emergency are once more freely available. But in some instances, such as petroleum products, and certain building materials, shortages still persist or the position of supplies has not yet reached that degree of stability which would justify the complete abolition of controls. The main limiting factor in the building industry is the shortage of skilled workers. The changes which have been made either by removal or easement of controls have permitted reductions in staffs and the numbers shown in the Estimate for this year are less by nearly 100 than they were last year. Since the Estimate was printed further reductions in staff have been found possible, and I anticipate still greater reductions will be made before the end of this year. The staffs released from my Department will be transferred to meet the requirements of other Departments, whose services are expanding.
During the past year, there has been a steady and continuous increase in industrial activity, notwithstanding the difficulties which arise from the fact that machinery and equipment still continue to be difficult to obtain. It is the policy of the Government to give every encouragement in their power to sound proposals for the establishment of new industries or the expansion and development of existing industries. In giving effect to this policy, the Government will be prepared, where necessary, to provide for industry any reasonable measure of protection that may be required and that will not be detrimental to the interests of the community as a whole. The Government have been concerned to ensure that there will be the fullest examination of every relevant factor arising in connection with applications for protection, and that special attention should be given to measures for promoting the well-being and expansion of Irish industry. They consider that their policy in these respects can best be furthered by setting up a special body who will have the fullest possible independence and who will be charged with special functions of an advisory nature in relation to industry and its development. They, accordingly, decided to set up an industrial development authority with functions which have already been announced. The preliminary steps for the establishment of the authority have been taken and, at an early date, I will introduce proposals for legislation, so that statutory effect will be given to the Government's decision and that the legal position of the authority, as well as the powers to be conferred on the members, will be determined. As there are many urgent matters awaiting examination by the industrial development authority, it has been decided that the members should make a start with their duties in advance of the enactment of the legislation.
During the past year many proposals have been before me for the establishment of new industries or the expansion of existing industries. Some of these proposals were indefinite and tentative in nature. It is likely that some of them will not be pursued, but the prospective promoters have been afforded all the information and help which it was practicable to give. In the past year I have notified my approval in 90 cases of new industrial proposals and in 14 of these cases the production stage has been reached and appreciable employment has already been given. The numbers employed will expand when these new industries advance beyond the development stage through which they are now passing. There are some 70 proposals for new industries which are in process of advancement towards completion. The volume of production in the industries producing transportable goods was, in the year 1948, 15 per cent. above the volume in the year 1947 and 36 per cent. above the volume in the year 1938. For the last quarter of 1948, the volume of production in these industries showed an increase of nearly 9½ per cent. over the volume in the last quarter of 1947. In industry as a whole, that is, including building and construction, public works of the State and local authorities, transport and public utilities, the provisional figures of production show an increase in 1948 of 16? per cent over 1947 and of 28 per cent. over 1938. In 1948, as compared with 1947, the most notable increases in output occurred in the production of bricks, glass and cement, pottery, wood furniture and upholstery, vehicles, metals, engineering and certain branches of the textile industry. There was a decline in the clothing industry and a more marked decline in the fellmongery, leather and footwear industries.
I have given special attention during the past year to the position of the clothing, leather and footwear industries. In the case of the clothing industry, the manufacturers made representations to me on a number of occasions, that they were being seriously affected by the substantial volume of imports which the effective rate of duty of 25 per cent. ad valorem, reimposed in January, 1948, was doing nothing to stop. They urged that unless action was taken to stem the flow of imports they would be forced to close down their factories, and they produced evidence to indicate that goods were being landed here at prices with which, having regard to their costs of materials and wages, they could not possibly hope to compete. I had several meetings with the clothing manufacturers and, having been satisfied as to the strength of their case, it was decided by the Government, on my recommendation, to double the effective rate of import duty. I was assured by the manufacturers that this increased protection would not lead to increased prices and, indeed, they went further in stating that the extra production which would result from getting the bulk of our market reserved to them should so reduce their costs as to enable them to reduce prices. I have warned the manufacturers that, if there is any attempt by them to take advantage of the higher rate of protection now afforded to them by increasing prices, I will take steps to withdraw the protection entirely.
The footwear industry presents a specially difficult problem. On account of the volume of publicity which conditions in this industry have had recently it might not be inappropriate to set out the facts of the situation. The pre-war market for leather footwear was in the region of 4,750,000 pairs annually. In 1938 it was 4,697,000 pairs, made up a home production of 4,442,000 pairs and imports amounting to 255,000 pairs. Though rationing had to be adopted, the market was reasonably supplied throughout the whole period of the emergency. In 1946, although home production at 5,254,000 pairs showed a substantial improvement on the previous year. imports amounting to 1,068,000 pairs were permitted, making a total quantity of 6,322,000 pairs available in that year. In the following year home production increased still further to 5,491,776 pairs. Although the output of Irish factories in that year was substantially greater than the total annual pre-war demand, imports amounting to 2,145,948 pairs were authorised under the Control of Imports Acts. An import quota of 625,000 pairs of leather footwear was appointed in November, 1947, for the first six months of 1948, and when I took office as Minister I found that substantial advantage was being taken of this quota for the importation of such footwear. That, briefly, was the situation when I first met representatives of the manufacturers over a year ago and when they claimed that the industry was in a perilous condition because of extensive imports. After reviewing the matter at that time I took steps to reduce the imports drastically. A quota of 150,000 pairs was fixed for the second half of 1948, and, in fact, only 105,000 pairs were imported in that period. It was also provided at that time that boots, as distinct from shoes, would not be imported and this provision continues to apply. In agreement with the manufacturers a quota of 200,000 pairs was fixed for the first half of 1949 but imports from January to March, 1949, amounted to less than 28,000 pairs, i.e., less than 2 per cent. of the market. I hope that the figures which I have quoted will refute finally the assertion that the difficulties of the footwear industry have been caused by competition from current imports, or that I have neglected the interests of this important industry. Despite the measures to which I have referred I regret to say that there has been little or no improvement in the position of the industry and because of this fact I again met a fully representative meeting of the manufacturers recently. Though some of them were still inclined to the view that their difficulties were being accentuated, if not indeed caused, by current imports, it was agreed generally, after discussion, that such imports were of little or no consequence. At my suggestion the manufacturers agreed to set up a small committee which would make a comprehensive examination of the industry and submit proposals for action that would put it on a sound basis for the future. The committee are still working and I expect that their proposals will come before me in the near future. In the meantime, I am taking action in an endeavour to secure improved export outlets for footwear.
Numbers of protective measures which were in operation before the war and which were suspended owing to supply difficulties continue to be suspended. Each case is separately examined from time to time so that it may be ascertained if any action is necessary to safeguard our own producers.
In the many meetings which I myself and officers of my Department have had with representative of the industrial community frequent references have been made to the widespread prejudice existing in the home market against Irish-manufactured goods. It was, perhaps, understandable that some such prejudice should exist when industrial development was first initiated by a native Government, but now that Irish enterprises are firmly established and their promoters have attained more experience in productive methods, there can be no reason for the continuance of such mistaken ideas. I immediately decided to take such action as was open to me to ensure that the products of our industries would get a fair trial on the home market, and that the mind of the buying public would not be unduly influenced by high-pressure advertising of imported commodities. As Deputies are aware, I had a meeting recently with representatives of manufacturers, distributors and trade unions to discuss this whole question. At that meeting I indicated measures which would, in my opinion, popularise Irish goods and suggested that the various interests present should establish a representative committee which would not merely start, but sustain over a long period, a publicity and advertising campaign to popularise Irish products. I am glad to be able to say that my suggestions were unanimously accepted, and I am confident that if the committee acts vigorously and wholeheartedly on the lines proposed they will be doing very good work for Ireland and, incidentally, for themselves. If our manufacturers cannot find sale for their products here they must curtail production, thus depriving workers at home of the means of livelihood. This situation will immediately react on distributors by contributing to the improverishment of their customers and the contraction of their market.
The products of many of our industries are in demand in the markets of the world by virtue of their excellent quality. Our industrialists, however, would be well advised to devote continuous attention to improvements in quality and design as there can be no finality in these matters. If the efforts we are now making to remove the anti-Irish prejudice are successful our producers can compete on equal terms with the manufacturers abroad, but they can continue to do so effectively only by concentrating continuously on turning out articles which will be more satisfactory to the Irish consumer than those available from outside sources.
Employment in those industries covered by the Census of Industrial Production, including building and other industries of the service type, as well as manufacturing industries, increased during the year 1948 by 11 per cent. over the figure for 1938 and by 4 per cent. over the figure for 1947.
The provisional estimates show that the number engaged in industrial production increased from 177,000 in 1947 to 184,000 in 1948. For purposes of comparison it might be mentioned that in 1938 the number engaged in industry was 166,107. It is worthy of note that the preliminary returns for 1948 show that that year has seen the highest level of industrial production and of industrial employment ever recorded in the annals of the State. I might mention in that connection that industrial exports for 1948 exceeded by £2,000,000, or 20 per cent., industrial exports for the previous year.
There are some disquieting features about the employment position in rural areas. Attractive employment on public works with Bord na Móna and with the Electricity Supply Board is available, but these bodies have experienced great difficulty in obtaining workers in rural areas for the important undertakings in which they are interested.
Our external trade showed an improvement during the year 1948 in comparison with 1947. Imports in 1948 amounted to almost £137,000,000 in value an increase of almost £6,000,000 over the value of our imports in 1947. The value of our exports and reexports in 1948 was £47,500,000, which represented an increase of £8,000,000 over the value of the exports and reexports in 1947. The trade deficit in 1948 was £89,000,000 as compared with £92,000,000 in 1947. On invisible account, which represents net earnings from tourists, dividends from abroad, emigrants' remittances and so on, there was a balance in the country's favour in 1948 of £74,000,000 as compared with £62,000,000 in 1947. The overall net deficit in our external transactions was, therefore, £15,000,000 in 1948 as against £30,000,000 in 1947.
Since July, 1948, imports have shown a marked fall and exports have expanded. The balance of trade for the last six months of 1948 averaged £5,750,000 a month as compared with an average of £9,000,000 a month during the 12 months ended on the 30th June, 1948. I have taken every practicable step to increase the flow of industrial exports. Our exporters have, however, been handicapped in their efforts by the import restrictions imposed in other countries, and there have been discussions with representatives of many of these countries with a view to enabling our manufacturers to obtain markets for their goods. We have concluded agreements with Great Britain, France and the Netherlands and discussions are proceeding or are about to begin with some 12 or 13 other countries.
The importance of the tourist industry in our economy is reflected in the fact that the net earnings of the industry in 1948 represented at about £30,000,000 almost one-half of our total credit balance in that year on invisible account. The net receipts of the industry in 1947 have been estimated at £28,000,000 and in 1946 at £18,000,000. The peak was probably reached last year and I fear that it is unlikely that net receipts will again be so high, but it is very essential in the national interest that every effort should be made to ensure that the industry will be conducted efficiently by those engaged in it. The hotel business is the centre of the industry and I am of opinion that this business can best be conducted by private enterprise. Consequently, I have decided, with the approval of the Government, that the hotels acquired by the Tourist Board and operated on their behalf by Failte, Teoranta, should be sold. Action to give effect to this decision is at present proceeding. One of the most effective ways, in my opinion, of advancing the tourist industry is by a carefully prepared publicity campaign in those countries from which it is most likely that tourists can be attracted to this country. Funds are being made available for the purpose to the Irish Tourist Association, and I have every confidence that beneficial results will be obtained. The question as to the future action to be taken in relation to properties, other than hotels, acquired by the Tourist Board for development is under consideration and an announcement of policy will be made on a suitable occasion when this question has been fully examined.
Under the sub-head for food subsidies the provision for 1949-50 of £2,279,000 covers only the subsidies on tea and sugar. The provision made for 1948-49 covered subsidies on flour and wheatenmeal, oatmeal and margarine, as well as tea and sugar, and the amount provided, adjusted to take account of the transfer of the flour and wheatenmeal subsidy, was £3,047,805. There is a decrease of £768,805. Subsidy is no longer payable on oatmeal and margarine. In the case of sugar, modifications have been made in the scheme for distribution, and subsidy is paid only on sugar supplied to meet the domestic ration at the rate of ¾lb. a head per week. In the result, a substantial saving of subsidy will be effected. In the case of tea, distribution since rationing was introduced was on a quota basis which had to be adopted at the time when the bulk of our tea supplies came to us through the British Ministry of Food. This quota basis has resulted in payment of subsidy on excess quantities of tea, and it is proposed, when the necessary arrangements have been completed, to apply similar rationing arrangements to tea as those which apply in the case of the domestic sugar ration. The result will be a saving in the tea subsidy payments. All the measures which I have mentioned account for the decrease in the provision shown in the Estimate.
The prices charged for practically all commodities were subjected to a constant examination by the Prices Branch of my Department and the profits being taken by manufacturers were also closely examined. In the result, numerous price reductions were secured. The goods in which reductions were effected included margarine, cornflour, rice, jam, dried fruits, soap, timber, bicycles, petrol, building materials, certain articles of clothing, motor cars, wrapping-paper, paper bags and cardboard boxes. These reductions were effected and other prices kept stable notwithstanding the fact that, during the year, the upward trend in the cost of raw materials continued.
Deputies will observe that only a token provision is made in the Estimate for the fuel subsidy. The circumstances in which substantial reserves of fuel were purchased some years ago are well known, and heavy losses will of necessity have to be incurred in disposing of this fuel. Since the reserves were acquired and stored to meet emergency conditions and the fuel cannot be put into immediate consumption, it is the view of the Minister for Finance that the losses should not be charged in the accounts for the years in which they are incurred but should be refunded and spread over a term of years. The stocks of fuel held at the 14th May, 1949 were turf 149,306 tons, firewood 14,036 tons and coal 381,849 tons. The figures at a corresponding date in May, 1948 were turf 271,376 tons, firewood 399,403 tons and coal 457,720 tons.
I come now to the operations of Bord na Móna. The major development schemes on which the board are at present engaged are financed direct from the Central Fund by advances made under the Turf Development Act of 1946. The board are pressing forward energetically with the first scheme of development. Originally it was intended that a period of ten years would be required for its completion, but the work is being expedited so as to bring it to completion in a period of five years. The shortening of the period for completion will involve additional expenditure, and provision to meet that expenditure out of the Central Fund will be made in a Bill which will be presented to the Dáil at the earliest practicable moment. That Bill will also contain provision to cover a second scheme of development which the board have drawn up and which the Government have accepted. Work on the first scheme is proceeding with all haste. In the case of some areas under the second scheme further survey is necessary before final decisions can be taken and these surveys are being pushed ahead rapidly towards completion.
The Estimate now before the Dáil contains provision in sub-heads O (1) and O (2) for certain other activities of Bord na Móna. By the terms of the Act of 1946 provision for experiment and research falls to be made in the annual Estimate. The fact that this year the provision for this service shows a reduction of £40,000 as compared with last year does not reflect any diminution of interest in experiment and research either by the Government or by Bord na Móna. The reduction simply results from a realistic approach to the amount of experiment and research on which it will be practicable to embark in the current year. Deputy Larkin put a question to me on this subject some weeks ago, when I informed him that at the present time the board consider they can best advance the interests of turf development by concentrating their research activities on work which aims to obtain the production of turf in large quantities at reasonable cost. At the same time experiments are continuing in producing wax from peat, and there is investigation regarding the use of peat in the manufacture of wallboard and insulating material and in gas turbines.
In sub-head O (2) a provision of £384,000 has been made to meet the cost in the financial year of the turf production scheme which was formerly carried out by county councils. The provision for this service set out in the Book of Estimates for last year was £1,900,000. Deputies are already familiar with the circumstances in which the scheme was revised last year and the activities of Bord na Móna on this service confined to the production of turf by semi-automatic machines. Last year 100,000 tons of turf were produced and the expenditure incurred amounted to approximately £222,000. This year the aim is to produce 180,000 tons with an expenditure of £384,000, and it is expected that from the sale of the turf a sum of £355,500 will be realised and brought to account as an Appropriation-in-Aid. The net deficit on the scheme this year is, therefore, estimated at £28,500. In the early part of my statement I mentioned that no provision was being made this year for certain services previously operated by Bord na Móna. These are production of turf for use in non-turf areas, administration and general development; these items being set out in italics in the appropriate section of the Estimate. The provision formerly made for the production of turf for use in non-turf areas was in respect of the Kildare scheme for the hand-winning of turf operated directly by the board. The discontinuance of this scheme was decided upon early in 1948 and only a token provision in respect of it was made in the Estimates for last year. The provision for cost of administration of £12,000 made last year covered expenditure on a turf marketing section which was engaged in the inspection of hand-won turf and in supervising distribution and allocation. This service is no longer needed with the cessation of hand-won production and has been discontinued. The general development, for which £3,500 was provided last year, also related to the sale of hand-won turf and to the promotion of its production, the grant being expended almost entirely on publicity. Here, again, this service has ceased and no further provision is necessary.
There is an increase of £100,000 in the amount provided this year for the repayment of advances for rural electrification. These advances are made in the first instance from the Central Fund and the statute under which they are made requires that one-half of the amount advanced in any year will be met as a subsidy from State funds and repaid from the Vote to the Central Fund in the year succeeding that in which the advances were made. The increase this year shows the progress made during last year in the development of the rural electrification scheme. At the 31st March, 1949, work had been completed in 37 areas, and, of these, 30 had been completed in the year to the 31st March, 1949. In that year the number of consumers receiving supply under the rural scheme increased from 2,227 to 11,580. The Electricity Supply Board aim during the present financial year to complete 60 additional areas, and I consider that, generally, progress on the scheme can be regarded as satisfactory.
Provision has been made to cover the operations of Mianraí, Teoranta, at Slievardagh and Avoca. In the Slievardagh coalfield area, production from the Ballynunty and Lickfinn mines ceased during the year. I have on a previous occasion informed the House that the production in these mines was found to be completely uneconomic and it had been continued during the emergency only because of the acute fuel shortage which prevailed. Mianraí, Teoranta, have not, however, suspended operations in the Slievardagh district. During 1948 exploration work was concentrated on the copper area and further drilling was done in nine bore holes and 15 trial pits sunk. I have been informed by the company that the prospecting work has proved an area of coal of which samples are of good quality, and it is expected that production will begin before the end of the present calender year.
The Government have decided that exploration in the Avoca mineral area should proceed and they have agreed that on this work a sum of £120,000 may be expended. The Government have received expert opinion to the effect that for this sum of £120,000 it should be possible to get full information about the extent and quality of the mineral deposits in the area, so that the question as to whether further development should proceed can be decided. There have been delays in starting on the work at Avoca due to certain difficulties about title, but a commencement will be made in the very near future. Exploration work, for which a further sum of £13,000 is being provided separately under sub-head N (4) is proceeding on the gypsum and anhydrite mine in the Carrick-macross/Kingscourt area. The objects of this exploration are to get further information regarding the nature and extent of the deposits, to determine how the minerals can be worked most efficiently on a commercial basis and to test for salt, coal and other minerals. The work is being carried out under contract by a Swedish firm and the total cost will be about £44,000. There were delays in the initial stages due to difficulties in obtaining equipment but satisfactory progress is now being made and it is expected that the greater part of the exploration will be completed this year. This is an important mineral area and I anticipate that its subsequent development will prove of substantial economic advantage.
The provision in Vote 58 for transport and marine services is £262,600 as against £217,280 for last year. Deputies are aware that the Government, immediately on taking office, considered it advisable that there should be an immediate investigation of the whole field of transport and they entrusted this task to Sir James Milne, who brought into the inquiry experts in various branches of transport. I want again to acknowledge my indebtedness, and that of the Government, to Sir James Milne and his colleagues for the very valuable and comprehensive report which they submitted in such a remarkably short space of time. The decisions of the Government on the main issues have already been announced and legislation will shortly be introduced to set up a public transport authority and to give effect to the other decisions taken by the Government. The Estimate now before the Dáil contains no financial provision in respect of the services conducted by Córas Iompair Eireann, but opportunity for discussion of those services, and of the proposals of the Government, will be afforded when the Bill to which I have referred is introduced. I do not propose, at this stage, to deal with these aspects of the transport question, but I think that I should inform the House that, because of the critical state of the finances of Córas Iompair Eireann, it was necessary, in accordance with the State guarantee given under Section 18 of the Transport Act, 1944, to issue moneys from the Central Fund in July, 1948, and again in January, 1949, to enable Córas Iompair Eireann to meet the interest charges falling due in the months mentioned on the State-guaranteed Debentures. The sum so advanced from the Central Fund amounted in all to £360,145. The Transport Act of 1944 provides in Section 18 (6) that such advances, with interest, shall be repaid to the Central Fund by the company within 12 months from the dates on which the advances were made. It seems unlikely that the company will be in a position to repay the advances made in July, 1948, and in January, 1949. The Transport Act, 1944, provides that, failing repayment by the company the advances must be repaid to the Central Fund out of moneys provided by the Oireachtas. It may be necessary to take a Supplementary Estimate to enable repayment to be made to the Central Fund.
For grants in respect of harbours the provision for this year at £235,010 shows an increase of £43,010 over the amount voted last year. Grants will be paid during this year in respect of works which are either in progress or about to be started at Dublin, Cork, Arklow, Tralee and Fenit, Burtonport, Killybegs, Rathmullan and Westport. There are applications before my Department for financial assistance for the development and improvement of 12 other harbours. The general question of aid in these other cases is at present being considered by the Government. The matter is one of major importance and has to be examined closely, not only by reference to the merits of each individual case, but also in conjunction with other problems concerning transport as a whole. I should point out to the Dáil that even if unlimited funds were made available, progress with harbour development and improvement would be slow. Equipment and materials, as well as professional and technical personnel, are scarce, and the available resources are taxed to the utmost in connection with the works that are in hand or in train.
The amount required for aviation and meteorological services for the current year is estimated at £1,142,310 as against a Vote of £1,693,390 taken in the year 1948-49—a decrease of £551,080 A substantial part of the decrease is accounted for by a reduction in the provision made for constructional works at the Shannon and Dublin Airports. No necessary work of construction is, however, being neglected and it is the policy to develop these airports so that operations will be facilitated in every possible way. The major works at the two airports have almost all been completed, but there are some items of which mention should be made. A third hangar is being constructed at the Dublin Airport and will meet a long-felt need. The work was held up through difficulty in obtaining the substantial quantity of structural steel which is required, but this difficulty has now been overcome and the work is going ahead. A new radio building at Ballygirreen, County Clare, near the Shannon Airport is in course of construction and at the airport itself work is proceeding on the erection of a fire station and in the replacement of the control tower which was destroyed by fire a year ago. From now onwards, the amount required for construction work for airports should be diminishing.
Aer Lingus continue to operate our air services with the efficiency, regularity and regard for safety which have characterised the activities of the company since it was inaugurated. The company are making every effort to reduce the demands on the Exchequer for subsidy and, in an endeavour to increase traffic, fares have been reduced and special mid-week excursion rates introduced. Because of a falling-off in traffic, due in large part to exchange restrictions, the service from Dublin to Brussels was suspended in June 1948, and, because of an insufficiency of traffic, the direct Aer Lingus service from Shannon to London was suspended last April. An Aer Lingus link between Shannon and London is provided through Dublin. The company have started a service from Dublin to Birmingham and another new service from Dublin to the Channel Islands will be operated during the summer months. Notwithstanding the economies which the company have introduced, losses are still being incurred and the Estimate for this year included a sum in respect of subsidy for the year of £69,000. The amount actually provided in the Estimate this year for subsidy is £300,000, but this includes arrears of subsidy in respect of earlier years. By Section 19 of the Air Navigation and Transport Act, 1946, the subsidies payable were limited to a total of £750,000. The limit was reached in March 1948, and though provision for further subsidy payments was made in the Votes for each of the last two years, the full payments could not be made because the legal limit had been passed. I propose, during the course of this financial year, to introduce a Bill which will provide, among other matters, for an extension in the amount which may be paid in subsidy, so that issues may be made from the Vote not only in respect of the current year, but also in respect of arrears due for earlier years.
There are many services administered by my Department of which I have made no mention, not because they are unimportant, but merely for the reason that a reference to them all would entail an unduly long opening statement. I will, however, be prepared when replying to the debate to give any information which Deputies may require and to supplement, if necessary, the information given about those services which I have mentioned.
As Deputies are aware, my Department is in intimate touch with the industrial and trading life of the country and indeed to no small extent with the every-day affairs of the public generally. I believe that it enjoys the confidence of all with whom it has dealings. During the year just past it had to contend with many formidable problems. Some of these have now been solved; that those which still remain have not also been brought to solution is not the fault of the officers of my Department who continue to give very considerable help and guidance to our people in tackling the difficulties which still beset us.
Although emergency conditions are gradually disappearing, I have no doubt that the year on which we have entered will call for sustained effort by all sections of our people if we are to see the early return of normality in our daily life. While very substantial progress has been made during the year, a reading of the economic chart shows that there is no reason for complacency. Only by the wholehearted co-operation of all groups, manufacturers, traders, workers in every sphere of activity, can we hope to raise the country's output to a degree sufficient to redress our unfavourable trade and payments balances and to enable our people to enjoy at home that standard of living to which they aspire. Each individual can further his own and the country's interests by working harder. The services administered by the Department of Industry and Commerce will be at the disposal of everyone to whom they may be of assistance in devising and operating schemes for increasing output and ensuring the betterment of our people.
Ireland has now, in my opinion, the greatest opportunity it ever had of material advancement. There is, however, no time to waste, and I would ask the Dáil to approach the consideration of the Estimate in the realisation that although much has been done to improve the conditions of our people, much still remains to be done—and done urgently. It is in this spirit that I come to the House for the funds necessary to defray, up to the 31st March, 1950, the cost of the various services for which I have responsibility.