asked the Minister for Industry and Commerce if he will state what steps it is proposed to take to combat and/or offset the growing trade depression in this country, and if he will arrange the most immediate expedition in respect thereof before irreparable harm has been caused.
Ceisteanna—Questions. Oral Answers. - Trade Depression.
It is not easy to ascribe to a single cause the recent reduction in sales to the public which has caused a set-back in business, particularly in the textile and clothing trades, and which appears to be almost world-wide in its scope. The most generally accepted explanation is the development of "consumers' resistance" to continuing high and rising prices. As the price level is becoming stabilised it seems probable, in view of the over-all economic conditions, that this situation is not likely to be of long duration.
In this country, the position in some industries, notably textiles, is accentuated by the existence in the hands of merchants of exceptionally heavy stocks accumulatel for stockpiling purposes under the facilities afforded earlier in the year.
In so far as the position may be affected by a preference for imported as against home-produced goods, with a consequent fall in purchasing power through a reduction of employment, steps to rectify the position have been taken. In the case of textile goods subject to import quota restrictions, the quantity of goods permitted to be imported under quota has been drastically reduced and in the case of other goods, certain protective tariffs which had been suspended have been brought back into force.
Consideration is being given continuously to further measures which might be taken to expand trade in home-produced commodities.
Can the Minister state whether the steps he has outlined in his reply will be sufficient to remedy the present situation?
I hope so.