asked the Minister for Finance what quantity of dollars has been allocated for the purchase of raisins from the United States of America in each of the years 1948 to 1952, inclusive.
Ceisteanna—Questions. Oral Answers. - Dollar Allocations.
In order that the reply to this question may be understood in its correct perspective it is necessary for me to give some background information.
Before the war 45 per cent. of this country's total imports of dried fruit and 75 per cent. of its imports of raisins came from the dollar area. During the war shipping, supply and foreign exchange difficulties virtually terminated that trade. In 1945 $831,000, and in 1946 $1,300,000, were expended on dried fruit. In 1947 and 1948, except for a limited amount in respect of prunes for manufacturing purposes, dollars were not made available for dried fruit. Supplies of dried fruit, although not of such good quality and often much dearer, were available for payment in soft currencies.
At the inception of Marshall Aid it was the intention, on the assumption that sufficient Aid would be available, to resume imports of American raisins and prunes, and in respect of 1948-49 the previous Government approved an import programme which included $1,350,000 for these commodities. The amount of Aid for that year was lower than requested and actual expenditure on dried fruit was $468,000. In 1949-50 the dollar import programme approved by the Government included $720,000 for dried fruit and procurment authorisations for $540,000 were received from E.C.A. Subsequently the Government decided that this allocation should not be used but should be diverted to other commodities owing to practical administrative difficulties involved, and to the availability of dried fruit from other sources without expenditure of dollars or other hard currency.
For 1950-51 and 1951-52 Marshall Aid was to be progressively reduced and dried fruit was not included in the dollar import programmes approved for these years.
A determining factor in decisions to restrict dollar expenditure was the availability of dried fruit from non-dollar sources for payment in soft currencies. That is not now the position. The f.o.b. cost of Turkish or Greek sultanas would be at least 40 per cent. greater than the f.o.b. cost of the Californian product and, unfortunately, there is every reason to anticipate that the settlement for the former, through the E.P.U., would have to be, as to 100 per cent., in gold. So far as currency considerations are necessarily relevant to our import policies, there is now a clear advantage to be gained in buying in California instead of in the Middle East. Taking the respective costs landed at Dublin Quay, the Middle East fruit would still be 25 per cent. dearer.
To import the cheaper American dried fruit, so far as we can allocate dollars to that trade from the limited amount available to us, also benefits our balance of payments, mitigates the cost of living of our people and helps our important exports of cake and confectionery to maintain their markets.
It was for these reasons that I decided to include in the estimates of dollar expenditure for the year 1952, when these were drawn up last January, a provision of $1,000,000 for raisins and prunes. A sum of approximately $900,000 has recently been allocated to importers, who, in the past, have imported these commodities both for domestic consumption and manufacturing purposes. It is expected that this allocation, together with the existing stocks of raisins in the country, will suffice to cover requirements until the end of the year. Having regard to the other calls upon the available dollar resources and to the over-all objective, in present circumstances, of reducing dollar expenditure wherever possible, it is still essential to restrict allocations of dollars for dried fruit, as, indeed, for any other commodity, to minimum requirements.
Is it correct to say that the $1,000,000 provided for currants, raisins and prunes is equal to the entire requirements to finance the Marshall Aid repayments in the current year?
The Deputy is talking through his hat. There are no dollars allocated for currants. There are dollars allocated for seedless raisins and for prunes. The seedless raisins are required largely for the purpose of cake manufacturers who are considerable exporters of that material.
For sterling?
For sterling, yes. But the remainder of the allocations is required to cover the seedless raisins and prunes for domestic use. Did I understand the Deputy to say that the seedless raisins and prunes are a luxury and that beer is a necessity in every home?
I am asking does the $1,000,000, which the Minister proposes to spend on prunes and seedless raisins, correspond exactly to the amortisation requirements of the Marshall Aid loan in this calendar year and, if so, why does he send out his dupes to stump the country saying we are short of dollars wherewith to meet the Marshall Aid commitments when, in fact, we are spending the dollars to buy raisins and prunes? Does the $1,000,000 equate amortisation?
It does nothing of the sort. If the Deputy could only make a calculation he would know that the Marshall Aid dollars required for the interest on the Marshall Aid for one half year is of the order—and I am speaking in round figures—of $1,600,000 dollars.
You have made a million of it.
I understand that the Deputy's Leader admitted they had taxed the children's biscuits and sweets and the people's jam rather than tax porter, but now he wants us to prohibit the people from having prunes, raisins or slab cake of any kind, even the currant bun.
There is an advertisement on the front page of the Irish Independent offering 24 tons of Turkish sultanas and 30 tons of Greek currants at a large discount on account of their surplus supply in the city at the present time.
If the Deputy conducts his business dealing in job lots I do not.
asked the Minister for Finance if he will give particulars of the dollar allocation made for the importation of motor cars from hard currency areas in 1948, 1949, 1950 and 1951.
Dollar allocations to the motor assembly industry for the importation of unassembled motor cars for the years 1948, 1949, and 1951 were as follows:—
|
1948 |
$1,462,000 |
|
1949 |
$1,246,000 |
|
1951 |
$708,000 |
For the year 1950 there was no specific allocation for motor cars as such. A global allocation of $2,333,000 was made in that year, which assembly firms were free to use for the importation of unassembled cars, commercial vehicles and spare parts in whatever proportions they wished.
asked the Minister for Finance if he will give particulars of the dollar allocation made in the years 1948, 1949, 1950 and 1951 for the importation of goods which could be classed as non-essential or luxury goods.
I regret that the classification of imports for exchange control purposes, which are available in my Department, does not enable information to be given of the kind required by the Deputy. It is a matter of opinion as to whether particular imports could be classed as non-essential or luxury goods. If the Deputy requires a detailed statement of all goods imported from the dollar area during the years mentioned in the question, so that a view could be formed as to how far the imports include items of a non-essential or luxury character, it would doubtless be possible for the Central Statistics Office to prepare such particulars, but the task would take some time to complete.
Did the Minister include prunes in the essentials or in the nonessentials?