I move:—
That a sum not exceeding £5,990,240 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1955, for the Salaries and Expenses of the Office of the Minister for Industry and Commerce, including certain services administered by that Office, and for payment of certain Subsidies and sundry Grants-in-Aid.
I take it, it is agreed to take all the Estimates in this group together. It is customary for a Minister, when introducing the annual Estimates, to furnish an account of the activities carried on and the services administered by him in the preceding year. It is also usual for him to give an outline of the developments planned and the extensions or alterations of services contemplated for the year to which the Estimate relates.
Since I have only recently taken over responsibility for the Department of Industry and Commerce and its associated services I think it would be inappropriate for me to undertake a review of the activities of the Department over the past 12 months since this would amount to rendering an account of the stewardship of my predecessor. If Deputies have any questions to raise on the Estimates I shall endeavour to answer them or to inquire into them. My desire is to provide the fullest information to Deputies on the work of this very important Department of State. Deputies will also understand that, in the short period since I assumed office, it would have been quite impossible for me to ascertain in detail the activities of the Department for which I am now responsible. I propose, however, to refer to a number of matters which seem to me to be of immediate concern and to give some indication, in respect of these matters, of what my general policy and the policy of the Government is going to be.
We have now reached a stage of industrial development at which it is permissible to hope that while there may be minor disagreements on certain aspects of our national development programme, there is broad agreement as to the main objectives to be achieved. It would, I think, be harmful to our future development plans if there should be acute and acrimonious discussions on our industrial aims. I hope that whatever our disagreements may be on other aspects of policy it will be possible to secure a substantial measure of agreement among all Parties that our industrial resources should be developed to the full. Such agreement, and the assurance of no violent changes in our objectives, will, I feel sure, make a substantial contribution to promoting conditions of stability which will stimulate further industrial development.
Tariff reviews: A policy of protection has been pursued here by successive Governments and many of our Irish industries have enjoyed the benefits of protection for many years. I think that the time has now come to review and assess the results of this policy, and I think that view is shared by my predecessor. At all events, this matter has been under consideration by my predecessor, and I have now decided that a review of tariffs should be initiated immediately and I have entrusted this task to the Industrial Development Authority, which, as the reviewing body for the purposes of article 8 of the Anglo-Irish trade agreement of 1938, has already had experience in this direction.
I have given the Industrial Development Authority a first list of tariffs for review and it is my intention to add further items to this list from time to time. I have informed the Industrial Development Authority, however, that the selection of industries for review should not be interpreted as implying that the industries concerned are inefficient. The object of the review is to explore the possibility of securing expanded production, higher efficiency and improved methods generally, to reduce unit costs, to give the consumer the benefit of such improvements as it is possible to achieve, to develop or expand exports and, consistent with the foregoing, to secure maximum employment.
It should not be necessary for me to say that the fact that I have initiated this review of tariffs does not mean that I have any doubts about the need for protection for Irish industry. Nevertheless, in case anybody should have any doubts in the matter, I want to make it quite clear that it will be my policy to ensure that Irish industrial enterprises will be given every reasonable assistance and protection against foreign competition and against dumping from abroad. As I said recently in a public speech I want to assure industrialists that it is my aim and the aim of the Government to promote Irish industrial expansion on all fronts and those industrialists who desire to increase production and expand opportunities for employment will be warmly and sympathetically received by me as Minister. I am well aware of the difficulties facing anyone who wants to establish and maintain an industry in Ireland in the face of competition from bigger and more highly industrialised countries. I am also aware of the urgent need for the provision of more opportunities for employment in field and factory and it is and will remain the policy of this Government to seek to provide these opportunities by stimulating increased industrial and agricultural production.
Let me repeat, therefore, that I am determined to maintain an adequate and reasonable degree of protection for existing industry and that I will welcome proposals for the expansion of existing industries and for the establishment of any new industries which can be set up in this country on a sound economic basis. Any industrial promoter who comes to my Department with a sensible proposal can be assured of a warm welcome. He can also be assured that all the advice and information at my disposal which will be likely to assist him in formulating concrete propositions will be freely and gladly made available. Where it is clear that protection is needed for the establishment, maintenance or expansion of Irish industries on a sound basis I am prepared to recommend to the Government that the necessary protection should be provided.
Price Control: My policy in regard to prices and price control has already been clearly stated, but in case there might be any doubt in the matter, I wish to repeat that it is my intention to take-all possible steps to reduce the cost of living in relation to the people's incomes, and, in particular, to effect a reduction in the prices of essential foodstuffs. A reduction in the cost of butter has already been announced by the Government, and an examination of the prices of other commodities will be undertaken as quickly as possible. My aim will be to ensure that the investigation and control of prices will be operated in the interests of the consumers and to this end, I propose to take an early opportunity of meeting the members of the Prices Advisory Body. In the year ended 31st March, 1954, eight commodities were freed from price control on the recommendation of the Prices Advisory Body, and the Orders relating to these items revoked, mainly because adequate supplies of the goods concerned had become available. It must, however, be clearly understood that if there is any evidence of an unwarranted increase in the price of any commodity so freed, or, indeed, of any commodity, I will have no hesitation in reimposing and enforcing price control.
As Deputies are no doubt aware the Prices Advisory Body was established under emergency legislation which is due to expire on the 31st March, 1955. I am convinced that, in our circumstances, it will always be necessary to have in existence a body on the lines of the Prices Advisory Body whose function it will be to act as watch dog on behalf of the consumer, while acting fairly towards those engaged in the manufacture, importation and distribution of essential commodities. I am, therefore, examining the position to see if it would be necessary in making permanent arrangements to widen the functions of the Advisory Body.
Tourist Boards: I have no difference of opinion with my predecessor regarding the importance of the tourist industry as a factor in our economy, or the need for Government assistance towards the development and promotion of that industry. I am most anxious to give every assistance in ensuring the fullest development of the tourist industry. The need for two separate statutory bodies to carry out this development and promotion work has not, however, been established to my satisfaction, and I am considering if an arrangement can be made for the amalgamation of these two bodies in the interests of efficiency.
An Tóstal: There has been a good deal of public discussion about both the merits of An Tóstal and of the advisability of holding it so early in the year. I have not yet had an opportunity of examining this matter fully, but I have asked An Bord Fáilte as a matter of urgency to let me have their views on the scheme generally in the light of the experience of the last two years. Until I have received and examined these views, I would prefer not to say anything further.
Córas Tráchtala Teoranta: On the recommendation of an advisory committee set up by the previous inter-Party Government, Córas Tráchtála Teoranta was established towards the end of 1951 to assist in the promotion of exports to the dollar area. I think it will be agreed that the company has been doing very good work in this direction and that its efforts deserve governmental encouragement.
I am at present considering the desirability of extending their promotional activities in the national interest to cover exports to other areas including certain overseas parts of the sterling area. I hope to reach an early decision on this aspect of their activities.
C.I.E.: Deputies will recall that, in his Budget statement, the previous Minister for Finance referred to the provision of £1,000,000 for C.I.E. in the Estimate for Transport and Marine Services. That sum was made up of two parts, namely:—
1. Grant towards operating losses and revenue charges £463,000
2. Repayment to Central Fund of advances to meet interest payments on transport stock for the year 1953-54 £537,000
The former Minister for Finance indicated that in view of an improvement in the finances of C.I.E. and of the fact that certain payments charged to revenue should more appropriately have been charged to capital, it would not be necessary to make any payment to C.I.E. this year towards operating losses and revenue charges. The financial relationships between C.I.E. and the Exchequer are somewhat complicated, and I have not yet had an opportunity of going into this matter fully. I cannot say what action will be taken in relation to these particular transactions until I have had an opportunity of studying the matter and consulting the Minister for Finance about it.
Factories Bill: Deputies will recollect that the Factories and Workshops Bill had not been passed before the Dáil was dissolved. A large number of amendments to the Bill had been put down for consideration on the Committee Stage of the Bill, and I propose to re-examine the draft Bill in the light of the amendments submitted for the Committee Stage before reintroducing it. I hope that it will be possible to reintroduce it in the next Session, and I trust it will be possible to secure the agreement of the Oireachtas to the improvement of our present code of factories legislation.
Holidays (Employees) Act: Representations have been made to me from quarters for an amendment of the Act relating to workers' holidays with a view to increasing the minimum period of holidays with pay at present laid down by law and also with the object of making certain other amendments. I am at present examining these suggestions.
Air Services: On the question of air transport, the Dáil is aware that at the request of the British Government discussions have taken place between representatives of my Department and representatives of the British Ministry of Transport and Civil Aviation about the provisions of the Air Transport Agreement of 1946. These discussions have not yet concluded, and I am not therefore in a position to-day to make any statement about them.
A separate and indeed a serious problem arises in connection with the financial position of Aer Lingus. The company's accounts show a net loss of £83,313 in 1952-53; and I am informed that the accounts for 1953-54 will show a loss of the order of £105,000. For 1954-55 the indications are that the accounts will show a loss on the present basis of approximately £220,000 and this figure may even be exceeded Moreover, there is no indication that the company can get back to a profit earning basis in the immediate future. I have made arrangements to discuss this disquieting situation with Aer Lingus and I hope it will be possible to take steps to reduce this heavy deficit. I think, however, the Dáil should be informed at once of the gravity of the position. It may be necessary to take a Supplementary Estimate during the current financial year to provide for the deficits in respect of the two earlier years mentioned.
Bord na Móna: I would like to refer briefly to the activities of Bord na Móna as I think the importance, from the national point of view, of the developments entrusted to the care of that body can scarcely be exaggerated. In this matter I hope I will have the wholehearted co-operation of all Parties in the House in the fullest development of our turf production programme. Bord na Móna is carrying out simultaneously two large development programmes. The first, which was commenced in 1946, was aimed at the achievement in ten years of an annual. output of 1,000,000 tons of sod peat.
The second programme, which was commenced in 1950, is designed to achieve an annual output of 2,250,000 tons of milled peat by 1960, and, as in the case of the first programme, the bulk of the output will be used for firing the generating stations of the E.S.B. These two programmes, which between them are estimated to involve a capital expenditure of £14,000,000, are proceeding simultaneously and it is expected that the first generating station to use milled peat at Ferbane will come into commission in 1955-56. The bulk of the work at present in hands under the second development programme consists in initial development work such as drainage.
The importance of this turf development work cannot, as I have said, be exaggerated. In the first place, it involves the utilisation of native resources which, for centuries, had lain virtually untapped and, to a large extent, despised and derided. That, in itself, would have been a sufficient justification for a scheme for the development of our bogs on a national scale but, in addition, there are numerous other advantages. Peak employment by Bord na Móna in the 1953 season amounted to approximately 7,000 persons and this was a valuable source of employment in the rural areas.
By utilising our own natural resources, we can supply power to industry and agriculture at a lower cost than if we relied on imported coal, while, at the same time, we can reduce substantially our dependence on imported fuel. Not the least of the benefits to be derived from turf development is the ultimate addition to our resources of land which should be suitable for agricultural or forestry purposes.
As Deputies are aware, the first international peat symposium will be held this month under the auspices of Bord na Móna, and will be attended by representatives of practically all the nations of Western Europe, as well as by representatives of Canada and the United States of America. The fact that the symposium is being held in this country is, I think, a notable tribute to our achievements in the field of peat development.
I have confined my statement to the main activities of the Department. If there are any other aspects of the Department's work on which Deputies desire to get information, I shall be happy to provide it.