asked the Minister for Finance whether he is aware that exports of wool from this country to Holland are being re-exported to the U.S.A. at a lower price than would be economic for Irish exporters due to the fact that the Dutch buyers pay for the wool in sterling obtained by them at a rate lower than the official exchange rate, thus undercutting potential Irish exports to the U.S.A.; and, if so, if he will state whether the Government intend taking any steps to prevent the consequent loss in dollars to this country, particularly in view of the need for developing a dollar trade to the fullest possible extent.
Ceisteanna—Questions. Oral Answers. - Re-Exports of Irish Wool.
As regards the first part of the question, I am aware that, in some instances, Irish wool sold to the Netherlands has been re-exported from that country to the United States of America at prices below those at which Irish wool can be sold economically in the dollar market, but I am not aware that such circumstances always arise from the use of "cheap" sterling by the Dutch merchants.
As regards the second part of the question, there is no control over exports of wool, and presumably an Irish exporter who sells to the Netherlands rather than to the United States of America does so because he receives a better price for his product. I understand that recently the Netherlands Government have agreed to take measures to restrict transactions of the kind referred to by the Deputy where sterling area products are concerned. The situation is being kept under review having regard to the importance of maintaining and expanding our dollar exports.