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Dáil Éireann díospóireacht -
Wednesday, 28 Feb 1962

Vol. 193 No. 5

Committee on Finance. - Vote 44—Industry and Commerce.

I move:

That a supplementary sum not exceeding £250,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1962, 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 sundry Grants-in-Aid.

A sum of £650,000 was voted in the annual Estimates for payments by An Foras Tionscal under the Undeveloped Areas Acts, 1952 and 1957. In the event this has proved to be inadequate. Up to the 31st January, 1962, all but £4,000 of this sum had already been paid and it is expected that before the 31st of March, 1962 a further sum of £350,000 will be spent.

The reason for having to seek more money at this stage is partly due to the unusual difficulties inherent in the framing of annual Estimates of expenditure by An Foras Tionscal. These difficulties stem from the fact that the establishment of an industry involves a number of operations (such as company formation, site acquisition and clearance, provision of balance of capital, erection of factory premises and purchase of plant), the exact timing of which it is difficult to calculate with any degree of accuracy. Forecasting on an annual basis of payments likely to arise presents, therefore, unusual problems.

The excess over the estimated expenditure for the year reflects of course the beneficial results of the expanded programme undertaken by the Industrial Development Authority which has resulted in the emergence of a number of projects not foreseen when the Estimate was first prepared. In addition, due largely to favourable conditions for factory building operations more rapid progress than was expected was made on a number of projects.

Total net commitments incurred to 31st January, 1962, by An Foras Tionscal in respect of projects proposed for establishment in the undeveloped areas amount to £6,141,898 of which £2,605,264 has been paid, leaving outstanding commitments of £3,536,634. Grants paid to date in the current year amount to £646,000 and it is expected that payments to the end of the year will amount to £354,000 making a total of £1,000,000 in grant payments for the year.

On 31st January, 1962, there were 70 projects in the undeveloped areas in production which have been assisted by An Foras Tionscal and there were a further 52 projects in various stages of development. If all the latter projects come to fruition, the 122 projects approved by An Foras Tionscal to date will represent a total capital investment of £15,000,000 and will give employment to about 10,000 workers, of whom it is expected that 5,500 will be men and 4,500 women.

A very encouraging feature of the operation of the underdeveloped areas scheme has been the extent to which projects related to the export trade are being developed. Of the total of 122 projects approved, exports are envisaged in about 60 per cent. of the cases and, indeed, in the case of certain projects, the whole of the production is intended for export.

It will be recalled that a provision was made in the Industrial Grants (Amendment) Act, 1961, whereby the number of persons on the Board of An Foras Tionscal could be increased from three to five. Because of the substantial increase in work falling to be dealt with by An Foras Tionscal, it became imperative to increase the number of members on the Board and, following the Act, I have, therefore, appointed two new members to the Board.

I should, perhaps, refer again to my intention to introduce legislation dealing with the grants scheme. Deputies will of course be aware that the existing legislation is due to expire at the end of 1963 and new legislation would then be inevitable. I have previously made it known, however, that a review of the scheme is already in progress and I hope to bring proposals before the Dáil well before that date. I commend the Supplementary Estimate to the House.

Including this Supplementary Estimate, the sums of money involved total a very large figure. According to the Minister, the total involved in respect of capital investment will amount to £15 million. The House would be interested to get some further facts on the matters affected by it. The Minister states that a total of 122 projects have been approved by Foras Tionscal which will represent the sum of £15 million and give employment to about 10,000 workers. How many workers are at present employed on the projects that have come to production stage? It is also mentioned that one of the satisfactory aspects of the matter has been the extent to which it is expected the undertakings will engage in the export trade. I should be glad to know what percentage of established industries are already engaged in the export trade and what proportion of the total output of these industries is represented by sales on the external market.

Everybody recognises, once the State accepted the idea of inviting here foreign technicians, people with technical knowledge or what is sometimes described as knowhow, in order to promote, or assist in the promotion of industrial projects here, that, while there were obvious advantages, there were also certain risks inherent in it. In the main, the work that is being done by foreign industrialists who have come here has proved beneficial. On the other hand, undoubtedly there have been cases where, for some reason, these undertakings either prospered for a period or at some subsequent date those concerned, the foreign personnel, directors or technicians decided to leave. In recent times, I think there has been some public concern about the extent to which the people who have established industries here and availed of the facilities have, at short notice, indicated that they are leaving.

It may be difficult, in securing co-operation and the necessary technical and skilled personnel to establish these industries, to make it obligatory on them to stay for a certain minimum period; in certain circumstances, it may even be unnecessary because our own people will have been trained and will have the necessary skill and knowledge. It is the universal experience that they are highly adaptable and easily trained and learn quickly the various skilled undertakings which they are required to operate, but I believe there is some public concern about the fact that in a certain number of undertakings the directors or technical personnel decided to leave and return to their native country.

Obviously, certain risks had to be taken. It is conceded and recognised that in order to promote new industrial projects here, provide the knowledge necessary and the much-needed employment, it is essential to secure persons with skill and experience, but I believe the time has come when very considerable care and the most careful scrutiny should be exercised in order to ensure that persons who are establishing undertakings here can prove their bona fides without question. Otherwise, it will not merely affect the existing industries but may in turn cause doubts and misgivings about any new project that may be in contemplation and may upset some of the plans which industrialists and local groups have for particular industries in their own localities.

This Act, when it was originally passed, was primarily concerned with the undeveloped areas. That definition has been widened to such an extent that many projects have now been started in areas other than those originally contemplated, although I understand an effort is still made to restrict new projects to those which are of national importance or of sufficient significance to warrant approval being granted for their establishment in areas outside the undeveloped areas. That aspect of the matter could be further reviewed.

We all sympathise with the idea of establishing industries in the undeveloped areas and of encouraging projects in these places, but in the Programme for Economic Recovery and the comments which were made in the Grey Book published by the Secretary of the Department of Finance, reference was made to this matter and the view was expressed that the original anticipations were not lived up to and that, in fact, a change in policy in this regard might well be justified.

It is obvious for many reasons that the facilities which are needed for successful industrial undertakings are not always available in some of these hitherto undeveloped areas and that many of the facilities necessary are available only in reasonable-sized towns or in the larger centres of population. There is also the natural reluctance of persons establishing these undertakings to move them to localities where not merely is there an adequate supply of labour but also readily available the facilities and services which they need.

That aspect of the matter should be further considered and I should be interested to hear from the Minister what percentage of the new projects which are approved are confined to the areas originally designated as underdeveloped and what percentage of projects have been approved for the extended areas under the later changes which were made in that designation. It seems that if it is necessary to extend the areas further, then the whole position has been altered and the terms and conditions under which the areas were originally designated might be reviewed in the light of the working of this scheme.

It is satisfactory to note that many of these projects have come into production, but I believe it is important that we should have the actual figures of the numbers at present employed, and also the percentage of the established industries which are engaged in the export trade, as well as hearing from the Minister the Government's view on the fact that, as I say, in certain undertakings recently some of those directly concerned have decided to withdraw and to leave the country. These are matters which are exercising the public mind and they are of vital concern to our industrial development and expansion programme.

I want to support the previous speaker because I think the grading of State assistance to industry because of its location will have to be looked at more firmly and more sensibly than is the case at the moment. I do not think what we have been doing has been successful or that it will ever prove to be successful in the context of our whole economy. A very strong case could be made, particularly in view of the competitive character of our external trade, for the establishment of industries where they will be most efficient, where the population is, and where the facilities for unloading of incoming materials and shipment of outgoing finished products are available.

Our present sentimental policy will have to be discarded. Whatever it has achieved over the years, it will not in the long run prove successful. Industry must go where the labour is and where the facilities are. We have had experience in recent months of people who contemplated going into certain areas where the grant inducements were considerable, finally deciding to ignore the advantages of the high grants and going where other advantages outweighed them. The likely future of the country, viewing the entire economy as a single entity, would seem to indicate that decentralisation will become less important.

There is located in the country a factory which designs large pieces of factory equipment—I do not want to name the firm—which have to be carted 80 or 90 miles to the nearest seaport over roads which are not fitted to carry the burden that transport places on them. That seems to me to be senseless and it is time we looked at it again.

It is obvious from what Deputy Cosgrave has said that while he considers some additional safeguards might be provided, he is not against the granting of money to An Foras Tionscal for this purpose. I can readily understand the point of view of Deputy Barry who has just spoken, but I should like him to bear in mind the immense difference it makes to a small country town where a successful factory is established there.

In the town in which I live, the fact that the Electricity Supply Board are at present employing their own permanent employees and a number of local people in the area has made a considerable difference both to the economic and social life of the town, but it is a transient difference, which will disappear as soon as the Board have completed their activities in the area and moved on to somewhere else. How different it would be if the town had the benefit of permanent employment in a factory set up, shall we say, under the Undeveloped Areas Act.

It is undoubtedly easier for any person, be he a national or a foreigner, to establish a factory in Cork or in Dublin than to establish it in Bantry or Ballaghaderreen. If it is possible to establish it in one or other of the two small places, the relative difference is not comparable. One additional factory employing, say, 100 people would not make anything like the same difference to Dublin or Cork as it would make to a small town.

I cannot agree that the Undeveloped Areas Act, as originally introduced and subsequently amended, has been a failure. I cannot agree that the idea is sentimental, as Deputy Barry said. I hope I am not misquoting him in using that word.

I used it.

I understood him to say that he regarded the concept of the Undeveloped Areas Act as being sentimental. I think we must continue with it. It is vital that the second son, the second daughter, or perhaps the first daughter on a small holding in the West of Ireland, should, if possible, be provided with industrial employment there when it is perfectly obvious that their labour is superfluous on the land. They are faced with the choice of emigrating to America or England or migrating to one of the big cities. Whichever they do they are a loss to the countryside and they continue the unfortunate drain of the population of the Western counties.

One criticism that is often heard of An Foras Tionscal is that the Board are more favourable and more lenient to foreigners than they are to our own people. I myself have had the experience of being very closely associated with the application by an established company of entirely Irish people— young men who had proved their ability in business and now wished to expand—who put up what I was satisfied at the time was an unanswerable case. When, in fact, they were refused, one of them was moved to say that if he were a Japanese or a German he would probably have been better received. I should add that having reconsidered the application An Foras Tionscal granted it.

I am not saying that I personally agree with the statement that there is any bias against Irish industrialists but, certainly, there should never appear to be bias against them, because surely we should encourage our own people above all. I would say that we should be more lenient with them in their applications than with foreigners. The Minister is aware of the circumstances under which one particular town in the West of Ireland—which I do not propose to name—has for a number of years been hanging on awaiting the establishment of a factory which was to be brought in from abroad. The fact that the factory is not yet in being means that the people of that particular area have become rather cynical and have decided that neither the Government nor these people are sincere and, in the meantime, have lost courage and initiative.

Again, I am not suggesting for a moment, either, that this Government or their predecessors or the people associated with this project are in fact insincere; what I am saying is that in cases of this kind, it is undesirable that too great a time should elapse between the original application to Foras Tionscal and the implementation of the project. It is quite obvious that if a local development association have the enthusiasm at a particular time and have the necessary capital available and are ready to go full steam ahead, if possible, the steam should be used before the kettle goes off the boil and the water becomes flat. That, I should say, is a criticism that applies equally to Irish industrialists wishing to set up factories in any area. If they are not prepared to go ahead with their project within a certain time, they should be told that Foras Tionscal are not prepared to grant the facilities. Of course what I am saying is not to be taken as referring to any particular project such as the one to which I referred earlier. It is a general observation designed to protect the enthusiasm and initiative of local people from being dissipated.

I agree with Deputy Cosgrave that there has been some public unrest and misgiving about the failure and the sudden collapse of certain projects involving foreign industrialists and also involving very heavy grants from Foras Tionscal. It is only fair to add that some Irish projects have collapsed perhaps equally suddenly and that with the best will in the world, the Board cannot be certain of what is going to happen in the future. The misgiving obviously arises where foreigners are involved, that they might simply take advantage of the facilities granted here and use them to their own benefit. I am perfectly satisfied as far as that is concerned that Foras Tionscal take every possible care. Strange things happen in industry: markets may suddenly collapse; market prices may suddenly alter and a number of things can happen in a short time to change what appeared to be a viable project into a failure. As I say, I am satisfied that throughout the entire time it has been in operation, Foras Tionscal has made every effort to ensure that the project would be viable before they parted with the taxpayers' money.

In the years since the Undeveloped Areas Act was passed in 1952, a number of very desirable changes have been made. In particular, the old requirements regarding competititive disadvantage have now been dropped. It is now only necessary that one should be able to show beyond doubt that the project is likely to be a success. That surely gives a very good start to every development association anxious to provide industrial employment in their area. But I find that people who come to me from these areas are still very much in the dark as to how they should approach their work.

One tells them that the first step they should take is to go to the Department of Industry and Commerce who will be only too glad to help them and who will show them statistics of our imports and exports and thereby point the way to the type of project which would not merely be likely to be successful but would also be of benefit to the economy of the country by producing here what otherwise might have to be imported. One tells them then to go to an industrial consultant who is au fait with hundreds of industries and projects likely to be successful. Finally, one says to them that they must be willing to put up a certain amount of local capital on the basis that if they do not have faith in this project, it is hard for the public board to commit the taxpayers' money to their care.

All this, I am afraid, sounds very complicated to these people and in the end, many of them give up. They had begun with the fairly simple approach that they have a site, that they have all the required facilities, that they have plenty of labour, that they have a certain amount of capital and an endless amount of enthusiasm. They have not, of course, the necessary technical knowledge. Most of them have no industrial background whatsoever. I have often wondered if there is any way in which these people could be better helped officially. I have not managed to think out any way by which they could be helped because establishing a factory is something which starts at A and finishes at Z and you must go through the various stages before you can have the completed building.

I do know, however, as I have said, that many enthusiastic amateurs fall by the wayside because they feel they do not get sufficient help or encouragement from official sources. Perhaps if the Department were to send one of their representatives around to each of these development associations to give them a talk on ways and means of going about the matter, it might be of practical help. If officials were to go to the other towns where they do not have development associations, they could, I am sure, have a very interested general audience of people only too anxious to establish industry in the area. That is only a suggestion. I feel sure the fertile minds of the Minister and his Department will be able to think up much more sensible ideas to achieve the aim I have mentioned.

Perhaps I could finish by referring again to certain agitation, particularly in the West, regarding the activities of foreigners. It appears to me that this agitation has now largely died down. The fact is that with the probability that this country will join the European Economic Community, it is desirable that foreign capital should have an interest in this country. Obviously, a German or Dutch factory which is a branch of a parent factory within the Six will have a vested interest in the expansion of that factory and, therefore, a vested interest in Ireland's success within the community. From that point of view, the presence of capital from the Six appears to me to be obviously desirable.

I do not believe that the Department or the Board will have any greater difficulty in the future than in the past in providing the necessary safeguards. I think that a word of thanks and congratulation is due to Foras Tionscal for the work they have done and are doing. I believe they have much work still to do. My hope is that the western counties, particularly Mayo, which has not done too well industrially in recent years, will have the benefit of a greater share of the work of Foras Tionscal in the future than in the past.

The Minister told us that it was his intention to introduce new legislation in substitution for the Undeveloped Areas Act, which lapses in 1963. This is not an appropriate time to comment generally on that Act or to make any detailed suggestions as to how it might be amended.

We are all fully in sympathy with Deputy Séan Flanagan when he talks about the difficulties of small towns in regard to the establishment of industries. These difficulties are not peculiar to the West or any particular part of the country. While Ballaghaderreen and Bantry may have their difficulties, similar towns in every part of the country have their difficulties. However, I do not want this debate to develop into a contest between the West and the rest of Ireland. I think the Minister knows my views on the Undeveloped Areas Act and the views of the Labour Party as expressed at the last election.

I asked the Minister this question before and I should like to put it to him again. I should like him either to confirm or deny that in the event of our becoming members of EEC it will be possible for us to continue with this type of legislation. The Minister said in the Dáil some time ago that he did not see any particular difficulties in that, if we became members of EEC. I have seen a contrary expression of view, and I think it would be reassuring for the people interested in this matter to hear again from the Minister's mouth whether or not this is correct. It is possible that question may not yet be resolved within the EEC itself. Therefore, I do not want to commit the Minister to any definite statement if he cannot state categorically whether or not it will be possible to continue the Undeveloped Areas Act.

I share, possibly to a greater extent than those who have already spoken, the doubts expressed in regard to the investment of substantial sums of money in industries established and controlled by foreigners. Fifteen million pounds is a substantial sum of money to be paid by way of grant by Foras Tionscal. Frankly, I am concerned that we do not seem to have any control over these industries, once we pay out our money.

The sum of £15 million does not represent the grant. It represents the total capital invested, which includes private capital as well as grants.

In any event, I think I am correct in saying we have invested something over £6 million by way of grant; yet we do not seem to have any control. I do not say that Foras Tionscal or any Department of State should have overall control, but in recent times we have seen industries established with the aid of Government loans and grants folding up overnight. I do not hold the Minister responsible for that; I do not hold Foras Tionscal or any other State organisation responsible for it. But I believe the Minister, his agents or some of the institutions of State which have advanced money to these concerns should take the right, as I believe they have the right, to appoint a director, so that there will be some sort of contact with these newly-established industries, into which we have put a substantial amount of money. I do not think that is unreasonable.

I do not want to quote examples, but in the case of one industry which folded up overnight I do not believe either the Government or Foras Tionscal knew that was going to happen in such a short time. In respect of that industry, it is good to know that it has not entirely broken down and that there is not much loss of employment. Nevertheless, it came as a surprise to everybody, including Government Ministers. I am firmly convinced that the Government, or any of the institutions responsible to the Government, did not have an idea. That can happen in Limerick, Galway, Mayo, or any other part of the country in the morning.

I do not think anyone can regard it as ultra-socialist to suggest that if we put money into any concern by way of grant or loan we should have some say in the running of the concern. I do not advocate overall control or authority, but it would not be unreasonable to have at least one director to see how the money is being spent and why the money is being spent and to have a say in the general policy of the running of the industry. I had occasion to say last week or the week before that I knew one company which had got advances from the Industrial Credit Company. Whether it was the Department of Industry and Commerce which was concerned I do not know, but they exercised the right to put in a director in that industry. Surely it would not be unreasonable in the case of a company to which we had given £200,000 by way of grant to say: "You cannot object to our exercising the right to appoint a director on your board"?

I welcome the idea of foreign investment in this country but I do not think we should allow ourselves to get to the stage where foreigners may appear to have a strangle-hold on us and on the employment of our people. I do not know what some of them mean by their threats to numbers of Irish workers in recent months. Because a simple wage demand was made, they threatened to fold up and go back to wherever they came from—Germany, Japan or France. If they think that is going to make for good labour relations they are mistaken. We have ourselves to blame.

Therefore, in considering legislation, if legislation is necessary, we should take power to exercise some partial control over the policies of these companies. I do not know whether they understand labour relations in this country or whether they know what trade unionism is, but I do know they are antagonistic to it and have told some employees they should not join a trade union. Perhaps it is ignorance of trade unionism in general and of the Irish trade union movement.

Did somebody do that —advise them not to join a trade union?

Yes, they advised the workers that they would look after them. That is the old game of the employer: "We will look after you much better than the trade union". They will do that until they have got rid of the idea of trade unionism in that area and then they will exercise whatever control they like in respect of wages and working conditions.

In page 2 of his speech the Minister gave us certain information which I shall quote:

On 31st January, 1962, there were 70 projects in the undeveloped areas in production which have been assisted by An Foras Tionscal and there were a further 52 projects in various stages of development. If all the latter projects come to fruition, the 122 projects approved by An Foras Tionscal to date will represent a total capital investment of £15,000,000 and will give employment to about 10,000 workers—of whom it is expected that 5,500 will be men and 4,500 women.

Has the Minister any information as to the actual figures of employment in respect of the 70 projects that are in production? He does give the overall figure in respect of the 52 projects, but it would be helpful to the House if he told us what is the actual situation in respect of the projects in production. I do not know what other Members of the House feel about the last figures he gives in the quotation I have read to the House, but they are disturbing to me.

For the investment of £15,000,000, of which the State's part is £6,000,000, there seems to be a great tendency towards employment of women. Do not let anyone get the impression that I am against women working. Apropos of that, I would point out that I am a member of a Party which has always been in favour of equal pay for women, but it seems to me that there may be a preponderance of women in these industries for a particular purpose. I suppose I will be called something of a saboteur but I should hate to see Irish workers exploited, I should hate to see a situation where employment was given to young girls of fourteen who were kept until they were seventeen and then thrown out. I should hate to see this training of workers abused by anybody, Irish or foreign. I would prefer to see a figure of 8,000 men and 2,000 women. The man in this country is, thank heavens, still the breadwinner and this type of employment mentioned in the Minister's speech will not take the slack off the numbers who emigrate from the land, because 95 per cent. of those flying from the land are male workers.

Work in some of those industries may provide merely pin money for some girls even though they may work hard for it. But I should hate to see them dismissed when they come to a certain age and a new batch brought in. I cannot suggest to the Minister now how he could correct that situation, even if he himself thought it must be corrected, but the emphasis in employment here should be on men. There is no objection to the employment of women but it is much more important in these industries that we try to employ, in the main, adult male workers with a certain proportion of women. If we do not do that we will not do much to stem the tide of emigration.

Later on in his speech the Minister spoke about the value of these industries to our exports and he says that in respect of 122 projects approved, 52 of which are not yet in operation, exports of 61 per cent. of production are envisaged. Could the Minister give us any figures or tell us what the percentage of exports is in respect of the 70 projects we now have in operation?

That is all I have got to say except to point out that when the Minister comes to legislation in respect of the underdeveloped areas he should make certain changes designed to give a fair crack of the whip to small towns in provincial areas spread throughout the country because, as I said earlier, the distressed town, Ballina, or Bantry, need not be any more distressed than the small town in Wicklow, Kildare or Cork; and the man who is unemployed in Mayo is only as badly off as the unemployed man in Wexford, Carlow or Kildare. He has available to him the same unemployment benefit and unemployment assistance. He suffers the same sort of hardships. If there is a particular case to be made in respect of Cork and Dublin I am sure the Deputies representing these areas will make it for them. As far as the whole country is concerned, there should be equal treatment for all parts.

We on this side of the House will not quarrel with the amount of the demand made upon the taxpayers with regard to Foras Tionscal. The £650,000 with a net sum of £250,000, would be well spent if there were better results shown from the previous expenditure. The Minister opened by saying that the estimated expenditure excess over what was previously forecast reflects the beneficial results of the expanded programme undertaken by the Industrial Development Authority. The Minister need not be reminded that, when the Industrial Development Authority was set up by a Minister under whom he now serves that Minister threatened to close it up the first time he got the power to do so. He said it was the wrong way to go about the development of industry. He warned those taking employment with the Board that their term of office would be short. It would only last until such time as he was in a position to abolish the Industrial Development Authority, sack the members and establish something in its stead.

It is also of interest to note that the export side of the enterprises of Foras Tionscal has been stressed. I remember when the 1956 Act was introduced. Again, the present Prime Minister under whom the Minister serves told us it was the wrong way to approach this whole matter. He thought, first of all, that no good result would accrue from it and in any event it was likely from his previous experience, to be the wrong way to deal with the development of Irish industry, even on the export side.

Now we have a testimonial, first of all, to the Authority itself and, secondly, to their success on the export side. I had taken the Minister's asking for a net sum of £250,000 as being very simple but the interjection he made to Deputy Corish makes me wonder whether it is as simple as I first thought. Towards the end of the first page the Minister states: "Total net commitments incurred to 31st January, 1962, by An Foras Tionscal in respect of projects proposed for establishment in the undeveloped areas amount to £6,141,898." Then he divides so much as being paid, leaving so much as outstanding commitments. I followed that down to the second paragraph where I saw reference to the total capital investment. I thought that meant the capital investment on the part of An Foras Tionscal. I gather that is not so.

I should like to find out what is the total capital investment as between the firms themselves and Foras Tionscal in regard to the first 70 projects. What is the first capital investment that has to be added to the £6 million which represents a commitment by the body set up by ourselves? What is the likely commitment by Foras Tionscal in respect of the final capital investment of £15 million?

I am struck by one figure in relation to the total capital investment. Is that supplied by the firms themselves or is the division as between the firms themselves and our own board to give employment to about 10,000 people? Deputy Corish pointed out it is rather surprising that that employment is divided almost equally as between men and women. I do not know what the end of the matter was. Certainly, in the last couple of months, I read of certain trouble in the Shannon Industrial Estate in relation to certain firms who are accused of employing almost entirely juvenile labour and getting rid of the juveniles when they come to the point at which they are entitled to ask for a man's wages. There seems to be some reconciliation between the trade unions and the firms themselves, but the public is not aware of what the real situation is. It is one which caused disquiet and anxiety.

That will be increased when we find that for this £15 million investment, the employment is to be roughly half and half as between men and women. The figure emerges that about £1,500 is needed to put a worker into employment in this country. How does that compare with similar types of opportunities held out to industrialists in the Six Counties and, I think, in England? In the Six Counties. I saw a calculation made as to the capital investment required per worker employed. I do not know whether that varies when one thinks of the number of women as opposed to the number of men. There is a wage element there. The capital investment side might be of importance also.

In the end, we are presented at the beginning of 1962 with 70 projects in production and 52 more somewhere coming along the line. We are told that if all the 122 projects come to fruition, we will get 10,000 people employed. I make the calculation that the 70 projects must be giving employment to about 6,000 out of the 10,000. The Minister at many of these functions to which he has dedicated a lot of his working life spoke of an increase of 6,000 in industrial employment. That figure would appear to be appropriate enough to the 70 projects already in existence. Let us see where we are to get——

The Deputy forgets that all new employment is not confined to grant——

This is what we are talking about now—an increase of 10,000. When is it expected that these projects somewhere under development will come to a head? When will we get the 10,000? From what date does this matter run? The Minister need not be reminded because it was mainly in his constituency the promise was given that there were plans said to be in hands by the Government to put into employment 100,000 people. We now get a boast in relation to 10,000. We have already achieved about 6,000. At some time, when these 122 projects are working merrily, we may have 10,000 in employment.

It means a considerable period of delay before we get to the 100,000 which was promised nowhere more emphatically than in the Cork constituency which the Minister represents. It will be another two generations before that 100,000 mark is achieved, if the rate of progress is to be measured by what the Minister boasts about in the demand for these extra moneys. We are told that the operation of the scheme has one very encouraging feature—the extent to which the projects relating to the export trade are being developed. All these incentives stem almost entirely from the 1956 Act. They were not welcomed by the group to which the Minister belongs.

I should like to find out the division which Deputy Corish asked for. What native firms, as opposed to foreign firms, are brought under review here? To what extent are we depending upon foreigners coming here bringing in technical advice and, I hope, their capital? It reminds me that there was a time when one of the pivotal points of the policy of the present Prime Minister was to exclude foreign capital, to regard it as something which was a disgrace and something which was a weakening of the nation. We were told in those days in relation to foreign firms coming here with capital that the trouble, particularly with branch factories, was that any little disadvantage occurring here would cause them to close down entirely and clear out.

I should like to know if any division can be made between native firms and foreign firms who are brought under review. I did not know that the question to which Deputy Corish referred had already been raised and an answer given, but I should like to put the question again. I read the Rome Treaty as indicating that there is to be a free trade area and it is to be a free trade in the most emphatic meaning of that term. There is a phrase to be found in the Rome Treaty, that anything that distorts free competition or provides an advantage for the people of one country over the people of another will be frowned on and prohibited. I should like to know if the Minister has been advised whether or not the export facilities given under the 1956 Act, before the Rome Treaty was on the horizon, will survive the application of the Treaty of Rome. The very words used in the Treaty of Rome indicate that anything that distorts competition and prevents the fullest freedom of competition will be regarded as contrary to the Treaty itself.

We should get a clear understanding of these matters, instead of running along under a false impression and then having to correct the matter at considerable cost to the country at a later stage. I presume that some of these arrangements will be regarded as not contravening the Treaty of Rome because they were made before we applied to join the European Community but that any further development along these lines, once the implications of that Treaty were known and we had applied to come under it, will probably be dealt with much more harshly than those started earlier.

The Minister said, towards the end of his speech, that on account of the extended operations of this Board, he has appointed two new members. I seem to have a recollection of the appointment of a Mr. Barry as one of the new members but I do not remember the appointment of the second being announced. Would the Minister inform me of that?

He is a Mr. Herlihy. He was then Chairman of the Irish Assurance Association. He was not a civil servant.

Has he ever been?

He was at one time.

At the time of his appointment, he was in some outside occupation in which he still continues?

The demand for this £250,000 as the net sum that is required would not frighten anybody who has industrial development at heart but I do find myself in agreement with what Deputy Corish has said in regard to the way these moneys are being distributed. It seems that we part company with Foras Tionscal the moment the moneys are provided here and all our efforts here to get information about some of these outside bodies are frustrated. The Minister hides behind the old phrase that he cannot interfere with the day to day operations of these companies.

Nobody wants him to do that but surely there is a different case when one has to deal with the natural desire to get some idea of the operation of these companies? Surely one should know whether any conditions attach to these loans such as the amount of the interest and the terms for repayment? There are a whole number of things, information on which would be available to the members of the House if the Minister appointed nominees to these companies. If he did that, he would then be open to question in the House as to what his nominees did or did not tell him. There ought to be a new look taken of this matter by the Government and we ought to have some touch through the Government which would enable members of this House to get information about the operation of these companies. What Deputy Corish has said is worthy of appreciation and some thought should be given to the appointment of nominees on the boards of these companies by the Government.

I do not propose to detain the House very long, over and above making a few points on this Estimate. I think it will be generally agreed that the Minister, in seeking to extend the operation of the Undeveloped Areas Act, is doing good work. We should not be deterred by the plea of the old Manchester school of economics that industry should be sited in big built-up areas. The trend now is to spread out industry as far as is possible. That is happening in a great many countries and we are not the only country endeavouring to locate industries where there are large pockets of unemployment and where the potential exists for the training of the youth.

One could say at this stage that the emphasis in technical instruction is on the teenager. Regardless of whether they be male or female, the teenager is the best investment that could be made at the present time. That is generally admitted. Our natural resources have to determine where our industries will be located and the trend is to try to develop areas hither to considered barren and I think we should make every effort, regardless of whether we join the Common Market or not, to go on in this direction.

The Deputy who has just spoken mentioned the Rome Treaty. He said there was a provision in it to compel a country indulging in activities which might distort the pattern of the Treaty to cease those activities. There is also a provision in the Rome Treaty to help out undeveloped countries. In fact, that is its primary purpose. If we believe in human effort, we must believe, if we are to enter the Common Market, in the articles laid down in the Rome Treaty. I would not accept the defeatist attitude that we should pause at this stage and consider whether our action in developing and siting industries in the poorer areas is right or wrong. I think it is right and most members will agree that Foras Tionscal are doing quite a good job of work.

In the course of the debate, the point was made that quite a big proportion of a large number of applications is refused. That will happen in any effort of this description. If a proposed industry clashes with an existing industry, especially an industry catering for the home market, then it is out. All the emphasis is on exports; all the emphasis in Europe is on exports. Regardless of the Common Market, we must always bear in mind that most of the European countries lined up in the Common Market are exporting countries. To that extent, it behoves us, therefore, in catering for the location of industries and training workers to man them, to invest heavily in technical skills. The Minister, in conformity with the Programme for Economic Expansion, is quite right in moving forward, regardless of what the trends outside may be, provided, and there is always a yardstick by which to measure, that exports can be stimulated and the new industries are able to find a market either in Europe, North America, or elsewhere.

Thirty years ago, if Mr. Heuston, the head of the Universal Stores, had considered the competition he had to meet, his concern—it was a very small unit in those days—would not be the concern it is today. I submit there is nothing to be gained at this stage by being hesitant. Rather, we should be the other way. Those who never made a mistake never made anything; in the years ahead, our investment in technical skills, plant and machinery will pay dividends in the face of allcomers.

I think the Minister will recognise the justice and reasonableness of the requisition upon him to tell us how much of the £15,000,000 to which he refers in one paragraph as the total capital investment, represents grants from An Foras Tionscal, how much represents foreign capital investment, and how much represents domestic private capital investment. It may not be possible to give a figure accurate to a couple of thousand pounds. A global figure representing these three elements would, I think, help us materially to weigh up the value of the investment that has so far taken place because we will then be able to look at it in the context of an expected employment of 5,500 men and 4,500 women.

I have heard it said that if you are a citizen of Japan, or Germany, or Greece, you will be received with a red carpet in Foras Tionscal; but if you are a citizen of Mayo, or Cork, or Waterford you are treated with scant respect. In so far as my experience goes, and in so far as my information goes, there is no truth whatever in that suggestion. So far as I know, Foras Tionscal will receive a proposal for industrial development from people at home or abroad with equal enthusiasm and with an equal readiness to help in its realisation.

I think, however, the Minister should face another problem, which is being mooted at the present time and which is causing a certain amount of anxiety; that is, the employment of juvenile labour without the intention of retaining it after its training has been completed. If there is no substance in that apprehension, then let it be explained and dismissed. But there is no doubt that many people believe that of that 4,500 women and 5,500 men, a not inconsiderable proportion will be more aptly described as boys and girls. That, in itself, may not be wholly objectionable if these trainees are going to be retained in adult employment when their period of training has been completed. If, on the other hand, a high proportion of that employment represents apprentices who will not be offered permanent employment at the end of their apprenticeship, then I think such a labour practice would have to be investigated.

Deputy Corish said a very grave thing. He said he understood some of the foreign capital coming in here came in with a strong prejudice against normal trade union practice. That would be a very grave situation and the Minister will have an obligation to remind Foras Tionscal they should inform intending investors that our practice is to regard the trade union movement as a responsible and permanent element in our society and that there is no section of our community which would look with favour on any proposal to initiate a movement designed to destroy trade union activity in normal labour relations in this country. The sooner that is made perfectly clear to everybody, the better industrial relations we can look forward to. Any misapprehension in that regard will simply give rise to labour unrest and upheavals which could spread and create endless trouble for all concerned. It is much better for people who intend to invest in industry here to know that industrial relations here are largely based on a responsible trade union movement and that any attempt to short-circuit or avoid that will only beget labour unrest, which nobody wants, and which rational labour relations can easily avoid.

There is another matter to which Deputy Corish referred. Maybe I am too understanding in this regard. He spoke of a letter that had received a good deal of publicity in which a firm had seemed to imply that it challenged the right of a trade union to plead on behalf of its employees. I saw a copy of that letter. It was widely circulated. If one wants to understand it in that sense, then one certainly can, but the impression I got of that letter was that it was written by somebody who thought he spoke and wrote English perfectly but who in fact did not. He spoke it fluently and wrote it fluently but he did not understand fully the idioms he sought to employ.

Having a bowing acquaintance with more than one foreign language myself, I realise how extremely dangerous it is to try to be idiomatic in any other language than the language which one learned as an cliabhán, as we say in our own language. That letter struck me as the letter of a person who overestimated his own mastery of the English language and in his attempt to inflect idiomatically, he in fact used turns of phrase which were well calculated to give grave offence to somebody who fully understood the language: yet the letter was so fluently written that it might mislead many who read it into believing that the man who wrote it understood all the implications of the turns of phrase he elected to employ.

That is a serious danger. There can be no more deplorable misunderstanding than to take a false meaning from what another man says, because, although many people have not yet learned it, it is not what a man says that really matters—it is what he means. Therefore, before losing one's temper with one's neighbour, one ought to be quite certain not only that one has heard what he actually said but that one understands what he really means.

I know nothing is easier than to say that is all hooey but labour relations can be poisoned on either side. The employer can be misunderstood just as readily as the worker. If we enjoin strictly on employers the obligation fully to understand the problems of their workers, there is a corresponding obligation on responsible trade union officials and workers fully to understand what their employers say and, more important, what their employers mean.

I have asked the Minister to give us certain particulars by way of breakdown of the £15 million referred to. I will ask him for another specific piece of information. He said on 31st January, 1962, there were 70 projects in the undeveloped areas in production which have been assisted by Foras Tionscal. Could he tell us at this stage what assistance those have got and what actual employment they are giving as at 31st January?

In addition to those specific matters, I want to raise a much wider matter. It is not primarily associated with the Common Market; it is associated with the whole development of the world around us. We are passing through an extraordinary revolution and I am conscious of a certain Cassandra gift which haunts me. It is some considerable time since I first told Deputies in this House that they would live to see the day of the free passage of men, money and goods throughout the free world. When I first told Deputies that, I was looked upon as a traitor by the Fianna Fáil Party and as a visionary by a great many others. Of course, if anybody suggested now that the free passage of men, money and goods was not a good thing, the Fianna Fáil Party would all obediently stand up and denounce him for treason again. I told you that was coming; now it is here, the free passage of men, money and goods throughout the whole of Europe and the younger ones amongst you may well see it not only throughout the whole of Europe but throughout America, Canada, Australia, New Zealand and most of the free nations of the world.

That development is relatively insignificant compared with another development that is silently creeping in upon us like the tide, that is, the process of automation. Many of us have heard the word "automation" and have read about it, but I think very few people in this country realise what a monster it will be if we do not prepare a suitable cage to contain it and suitable harness to control it. Taking the long view, I believe if suitable measures are taken by mankind to make automation serve mankind, it can bring great blessings in its wake, but if it is allowed to march in upon us unprepared, it can precipitate as great disasters as the industrial revolution did 150 years ago, and the tragedy of it is that I do not think people will wake up to this situation.

Let me tell a story. I went recently to Germany and in the course of my peregrinations in Germany, I visited some large factories. One factory was a great steel factory which consisted of four great workshops, each of them 200 or 300 yards long built around a square. In the first workshop, there were 200 or 300 men working. They were making steel pipes. In the second workshop there were 200 or 300 men making steel pipes of a different diameter. In the third workshop, there were 200 or 300 men working mainly at the production of steel pipes but with a certain diversification into contract jobs as well, and that was very significant. Then we came to the fourth workshop which had been built within the past four years. I saw the sheet steel come in at one end and I went to the other end of the factory and I saw coming out, like drops of water falling, a 40 foot length of steel pipe every second of every minute of every hour of the day. How many men were working in that workshop? Fourteen: fourteen men in white coats. I said to the proprietor of the factory: "This fourth unit must be a great economy to you." He said: "It is, provided one thing—that I have a customer waiting for every length of pipe that comes out every second of every minute of every hour of every day because, if I have not, this workshop must close down. In regard to the other three, I have all the flexibility of a labour force. If the demand for a particular pipe is not there that any one of these workshops is producing, I can get contract work. They are all skilled men and I can put them to that. I can even lay them off for a while, if that is necessary. At present, we are working three shifts a day. I can always cut down one shift in that shop but in this shop it must not stop because, by reason of the vast capital investment, it will eat up in a week the profits of a month. Therefore, I must have a demand to keep it working its entire normal working time."

What does that mean if we look far ahead? Does that not mean that over a whole vast range of industry, production must be matched to immense consumption? One might think that this was a peculiarity of one particular branch of industry, if one did not read the current literature of the situation that is developing in the United States of America.

I think I am right in saying that in the past ten years the production of coal in America has increased by 25 per cent. and the labour force involved has declined by 50 per cent. The menacing character of this whole development is that while one can understand it in relation even to steel pipes or bars or coal it is now passing beyond that stage to the point where, by the most elaborate processes, the very manufacture of electronic equipment, which heretofore had been regarded as involving the very quintessence of human skill, is becoming automated. It is coming to be discovered that once you get the prototype, automatic equipment is more reliable in the manufacture of complicated delicate machinery, which heretofore was indissolubly associated with human skill, than the most skilled operative because it can so be fixed that if it begins to do something wrong, alarm bells will ring, lights will go on and the machine can be stopped until the error is detected. It eliminates the possibility of the human frailty which may falter at some stage of a difficult technical process.

How are we going to fit large-scale industrial development here with that prospect of automation? I think you will find that the sorts of large industries that developing countries such as ours yearn for at this time will be wholly impossible for us ten or fifteen years from today.

I saw another process in one of those factories, which I shall not describe in detail, which, up to six months ago, had occupied 40 men in three shifts per day. The entire process is now carried out by two men sitting at a thing like an organ console and pressing buttons. Every step that hitherto occupied the close attention of forty men in three shifts is now discharged by two men sitting at a newly-installed machine which, for a variety of reasons, could replace forty men. Very well. What are we to learn from that?

It seems to me that we have to learn a lesson. I am not so sure that the economists or the scribes of the Grey Book are infallible. The economists and the technicians only too often allow themselves to be dazzled by the statistical information they now possess. It is the fate of the unfortunate politicians to be the people who have to think not only of tomorrow but of people as well as things.

I am wondering if we have not got a very valuable industrial potential in the very areas Foras Tionscal are designed to serve. May I put it this way? In our special circumstances, might we not be better to make gaskets rather than motor cars? I do not think, if you take things like gaskets, that it will ever be economic to automate that process; the capital investment bears no relation to the end product; and, probably, for all foreseeable time, an end product of the value of a gasket will be met by all the ordinary industrial processes with which we are familiar today whereas an end product as valuable as a motor car will become more and more and more the subject of an automated process.

I suggest that there is a real prospect for relatively small industries concerned to produce an essential but not readily automated product in a country such as ours.

There is another thing. Are we not better employed producing blankets from Irish wool rather than yarn from imported Australian merino? Our future in the industrial picture rests largely upon industry founded on our own natural resources in which I include agricultural produce and its by-products such as native wool, the processing of meat and the production of industrial goods the nature of which virtually excludes them from the possibility of economic automation. But what I want to warn this House of is that the future industrial policy of this country—and not only of Ireland but of every country—can be formulated only in the light of the knowledge of what is going on and in the realisation that the silent tide of automation is rolling on much more quickly than anyone in this country at present suspects.

I have recently seen it alleged on high authority in the U.S.A. that their present level of unemployment is going to continue for the foreseeable future because no inroads that expanding production can reasonably be hoped to make upon it can keep pace with the progress of automation and the consequent displacement of labour. One body of trade unionists in New York have recently established the necessity, I think, of a 24-hour working week. I do not say that is directly the result of automation—I do not believe it is— but I believe that we are moving into a world which many of us in this House will live to see where a 30-hour working week will be regarded as nothing remarkable in a fully-industrialised community.

That will give rise to other social problems which it may be profitable to discuss on another occasion but the point I am trying to bring to the Minister's attention and especially to the attention of my colleague, Deputy Barry, is that what seems today a highly-skilled industrial area may be the first to suffer when the full impact of automation comes upon us and what seems today to be a deplorably underdeveloped area into which an industry is being brought by the operation of Foras Tionscal may prove in the day of wider automation the more stalwart survivor in the icy blast of automated competition.

I think there is a great social advantage in placing an industry in a small country town. You would want to live in and know country towns to understand the full significance of that proposition. Our whole structure of society in rural Ireland has been built up on a populous countryside, with towns and villages mainly occupied in the service of the surrounding families living on the land. In the past five years, a quarter of a million of those people have gone; between 200,000 and 250,000 have left the country and they were the biggest consumers in the families from which they went and they have mainly gone from the areas which Foras Tionscal is concerned to serve. I do not see any of my colleagues from Monaghan here: if they were, they would tell you of the spectacle of Newbliss——

There will be a small quota there the next time.

It is not a happy thought. When I first went to Monaghan, I do not think there was an unoccupied house in Newbliss; I think one house in every three in Newbliss is now abandoned and in the surrounding countryside, the houses are abandoned. No doubt, the reason is that the disappearance of the people from the countryside has meant a reduced demand for services—and I have seen it happen. I have seen the small shop which sustained the family in prosperity and which sent the children to the primary and secondary schools and also to the university, gradually sinking in status from being a shop to being a hucksters. I have seen the family in that home, which I knew when I was young, comfortable, proud and independent, becoming poor and in the most distressing poverty, the poverty that was too proud to show its rags, the poverty that kept up a brave front, the poverty that went smartly dressed to Mass on Sunday but often went without its midday meal on weekdays in the backroom of what used to be a prosperous establishment. The process is not too long delayed. They close; the family goes and is forgotten except by those of us who remember them and who grew up with them. But the accumulation of the disappearances means the beginning of the decline of the town. I suppose people who have grown up in cities cannot feel as we feel about the disappearance of a town we have spent our lives in and the scattering of the neighbours among whom we grew up and whose presence constitutes home. Is that sentiment——

Highly coloured and exaggerated.

I wish Deputy Barry would accompany me to Newbliss and see for himself that it is neither highly-coloured nor exaggerated. I doubt if there is any Deputy from rural Ireland who, if he felt free to tell the whole story as he knows it, would not say that what I say is true, that the population of rural Ireland has declined and that the small towns of Ireland are dying.

They are a very valuable element in Irish society; the small farmer is a precious asset and the small businessman in the rural towns has been one of the most stabilising influences to hold our society together. I want to say this on good authority—I often heard it said by the leaders of the Land League—if it were not for the money from America, and the publicans of rural Ireland, they could never have fought the land war. That is not so hard to understand. It was very largely the small businessman of rural Ireland who financed the land war, because the people for whom the Land League were fighting were the fathers, sisters, brothers, cousins or nephews of the small businessmen of rural Ireland.

I do not think it is a good thing to tear up the whole social pattern of the life we have in Ireland. I have travelled the world and lived in many foreign countries, and I think the life we have in Ireland is pleasant. I might have lived in America if I had elected to stay there. I lived there when I was young and, with the exception of Ireland, there is no country in the world I would prefer to live in than America. I think probably people can have a better life in Ireland than almost anywhere else in the world, if it is the kind of life they like to live. It is probably objectively a better life, and it is a better life because of the social pattern we have got of property-owning people in which there are no rich and no poor, founded very largely on the property-owning farmers of Ireland and the small towns of rural Ireland.

I believe those small towns probably can be salvaged from the consequences of emigration by the establishment of small industries and when the full story comes to be told and automation has had its way throughout the Continent of Europe, and in the presence of the free passage of men, money and goods, I venture to foretell that it is the relatively small industries that some of the economists now describe as uneconomic that will survive the storm and challenge of automation, and that some of the glossier industrial units that hold their heads high today will go down before that challenge.

Therefore, so far as I am concerned, I will take a chance on the establishment of industries in rural Ireland. I will take a chance that I see this problem in better perspective than some of the dry-as-dust economists who would use statistics to prove that industry outside a city of less than 50,000 population is an anachronism. I think the small industrial unit may have a real, permanent place in the world of tomorrow. The more I see of developments in the world around me the more convinced I am that it is in that sphere the industrial future of Ireland lies and that the sooner we hitch our industrial wagon to that star, the more secure the future of our investment will be.

The last thing I want to say to the Minister is this: It is very easy to peg rocks at every failure with which Foras Tionscal are associated. Failures are inevitable in connection with the programme Foras Tionscal have been directed to carry on. We may see a thing quite clearly here because we are constantly discussing such matters and are in intimate contact with them, but there is a thing that we in this House sometimes forget and should not forget, that in our form of society we have not only got to do the right thing, and we have not only to persuade the Dáil and the Oireachtas that what we are doing is right, but we have to keep the people persuaded that we are doing the right thing on their behalf, because without the people's support anything we resolve to do could not long continue.

It is from that aspect that I think there is real value in the suggestion that we should at least examine the question as to whether on the occasion of the investment of public money in an enterprise by Foras Tionscal there should not be some representation for Foras Tionscal in the undertaking. I throw this out merely as a thought. I am not sure how it would work, but we are all familiar with the practice that has grown up in Great Britain, mainly since the war—and it was in operation before the war—of issuing what are called A shares in a company, that is, shares which are entitled to the full dividends payable on the ordinary share capital of the company, but have no voting rights. I wonder could we turn that concept upside down and, if we want to give a company a grant under this scheme, make provision that the company should issue to Foras Tionscal a corresponding number of what we could call X shares. These would be shares which would be entitled to no dividend but which would have an equal vote with the ordinary shares of the company. We should not have greater influence on the destiny of the company than our investment entitles us to. We need not make the investment if we do not want to.

If we make our minds up that it is desirable to contribute £40,000 to an enterprise the total capital investment of which involves £250,000, is not there something to be said for entitling Foras Tionscal to receive 40,000 shares with full voting rights which they could use at the annual general meetings or for such other purposes as the Companies Act allows?

The Minister will say, naturally: "Well, even if you had 40,000 shares in a company with a capital of £¼ million, what good would it do?" It would give the right to receive the accounts and attend the annual general meetings and, possibly, to combine with other minority shareholders to make your views prevail against the views of the principal shareholders if it was necessary and desirable to intervene in the management of the company. In any case it might have— I am not sure of this at all—the very desirable effect of reassuring the public that their money was not handed over to someone without leaving behind it any lien in the hands of the donor on foot of which he could from time to time call for an accounting of what had become of the money the State had put up.

We do know of cases where foreign investors have suddenly withdrawn and as a result of holdings which the State has, either directly or indirectly, they have been able to keep the enterprise going. That is a desirable thing, rather than to create in the public mind the impression that the whim or sentiment of the foreign investor could create a situation in which a number of people employed here could lose their employment when, if Foras Tionscal or the Department of Industry and Commerce, or the Minister for Finance, had had an adequate say in the control of the enterprise, that employment could have been preserved.

Lastly, I want to say this: my interest in promoting industry is primarily to provide good employment for our own people, in decent conditions, in their own country. I know of no other valid reason for the artificial stimulation of industry in this country and this is artificial stimulation of industry, and when we endorse it, we should remember that it is an illusion to imagine that this kind of thing was always necessary to get industry going in Ireland. The greatest industries here were all established under the full blast of free trade. Guinness's Brewery, Jacob's biscuit factory, Harland and Wolff, all the shipbuilding industry of Belfast.

Mr. Barry

Not in Ballyhaunis, though.

No, but how many ships are on the slips of Harland and Wolff? Ask Rotterdam. But the blanket factory in Foxford that was started on a thráneen 70 years ago by a Sister of Charity is making more blankets today than it was making in 1885 when it was first established. There is a lesson to be learned there. In the times that were in it, this country was capable of producing great industries but those were the days when industry depended very largely on the skill of men's hands and when they were wanted, they were found in abundance and there was genius enough here, native genius, sufficient to match the best that could be brought from the four corners of the earth. It was the stimulation of full free trade that brought those great industries to their glory. I am not so sure that in the time that lies ahead, the age of automation, the prospects are the same but I believe there is an alternative and I believe that Foras Tionscal may be laying the foundation for something that will long survive, if it chooses wisely, and that it has an immense additional advantage in that in addition to making a contribution in physical wealth, it is helping to save the social pattern of society which I think is the equal, if not the superior, of any other on earth.

I think the Minister and the Board of Foras Tionscal deserve our greatest appreciation and support. Since 1952 the progress they have been making has been good. It may not have been as spectacular as we would have wished but it is only when one is closely associated with the amount of work and research necessary to bring a scheme to fruition that one appreciates the sometimes annoying delays that take place. I am glad that the Board is being enlarged and I shall welcome any future assistance the Minister can give to the Board.

Many Deputies here are anxious to get industries for their various areas. I should like to add that the placing of industry is not just the simple process many people take it to be. I have met people in the west of Ireland who say: "Place an industry with us" and in that town there is neither an organisation nor any body prepared to receive such an industry. I may say that in some western towns development associations are helping considerably to ease this problem. Nevertheless it does require, even in those towns, one or two individual leaders who are prepared to back their enterprise with their own finance, skill and knowledge.

Industry requires more than just a dream. It requires more than just money and more than just a building or machinery. There is the technical know-how, the background and the experience that is necessary. Industrial thinking is also required, which is the fundamental of industry. Even when you have established industry for years, those earning their living from it have not come to realise how important they are to that industry or how large a part they play in it. They do not realise that their contribution and skill is needed and that if an industry is to succeed, they must acquire that skill and must apply themselves to the job. These, to my mind, are some of the most fundamental requirements.

The most important and essential factor in all industry is manpower, the right type of manpower, and that manpower must be equipped with the right outlook and be capable of the right sort of thinking, if industry is to go ahead. Public representatives everywhere should take careful note of what I am saying. They will save themselves a lot of trouble if they encourage those who have the ability to read and take note of these ideas and they will then be much closer to getting that industry which they so desire.

Deputy S. Flanagan praised the siting of industry in any small town where there is a surplus of workers coming off the farm. They all know that apart from one or two who may remain on the farm, the remainder will inevitably leave. There is no place for those people to go except to the nearest town or to the city, to get a job, or to emigrate. It is only right to sponsor and encourage industry to absorb these people.

Reference was made to the red carpet being put down for foreigners rather than Irishmen. Anybody who has any experience of Foras Tionscal will know that to be nothing more than the disgruntled bleatings of somebody who did not get his own way. I have heard it only from someone who was turned down for one reason or another. There is no fundamental truth in it whatever. This criticism of foreigners coming here should stop. A lot of harm is being done by people who do not understand but who talk too glibly.

Foreigners come to this country with a lot more than merely their hands out to take our money. They come with skill and technical knowledge. They have something to give us and to leave behind them when they go. If they fail sometimes, there is not a complete loss because they leave trained people behind them and we benefit by their industrial experience. Foras Tionscal should not be judged by the failures that have taken place—and they are few— but rather by the magnificent advances that have been made.

A foreigner coming to set up an industry here is naturally welcome, if he brings a market with him. Today no industry can hope to achieve anything, unless it has a market or knows where it can get one. I laud the efforts of Foras Tionscal quickly to locate such industries here, whether they be Japanese, German or from any other country. There are many safeguards to protect our property and to exercise control, and we should not frighten off these people.

Frequently it happens that information is given to foreigners coming here that our wages are inordinately low. That may be true in the case of road workers and other rural workers. However, we should inform these people that we have trade unions here and that they make what might be termed inordinate demands but which are, in fact, based on the wages paid in Ireland and elsewhere. Development associations should not tell foreigners they can get workers to work in engineering or textile factories here for 2/- or 2/6 an hour. That may be true before the plant is established, but after that, the local trade union organiser will make his demand. I do not object to organised labour but rather do I welcome it. I always have and I always shall.

I heard Deputy Corish criticise the employment of juvenile labour. I have no doubt that from his wide experience he knows of such incidents, but I think they are only isolated incidents and that, in relation to the matter we are discussing, his remarks might well have been left out. They, too, may go abroad and give the impression that boys and girls of 14 and 15 are being exploited here. By and large, that is untrue and should be repudiated.

I want to deal now with the matter of female labour. There are some industries for which the woman worker is more suited than the man. She has, for instance, greater dexterity in many ways, especially in the handling of small parts. Many industries coming here are engaged in the assembly of small parts and are used to employing female labour abroad. I do not see anything wrong in employing such labour here. We might as well employ them at home rather than have them go to Birmingham and other industrial centres to do the same kind of work. I do not think we should discourage them. We should, of course, welcome greater employment of male labour, inasmuch as the men are the breadwinners.

A thing we probably forget here in our striving for industry is that the same race is going on in every country of the world. Recently I was in the New England States of America and I was surprised to find in Massachusetts and New Hampshire that the local authorities were offering great inducements to people to establish industries in those areas. I saw there the results of the decline in the woollen industry when hundreds of factories closed down. They were anxious to get these people back to work. This is another aspect of the migration that took place to the Mississippi and New Orleans areas. These demands for industries are similar to ours, and I must say our inducements compare favourably.

Deputy Dillon sees a great change coming over the world: the age of automation. As he was talking, I was thinking that this is the Space Age and that we expect even greater things than automation. I was pleased to hear him say that he felt that in the western areas, in the undeveloped areas, the small industries would inevitably be the ones that would survive. In Ireland, we can handle only very small industries. Even though we face the age of automation, man has faced many crises before and there is no reason for us to back away from our task until the horrible giant envelops us. Let us work and do what we can. We can deal with that problem as it arises, because I have no doubt that man will find an answer to the age of automation.

Today we see demands by trade unions and workers for a shorter working week. On the papers every day of the week, we see the results of a shorter working week on the great industrial empire of America. Today, because of the shorter working week and the high cost of production, their people cannot sustain themselves on one job but now have to work 80 hours a week instead of the ideal 25 hours a week or even 40 hours a week. No matter how gloomy is the picture of the future painted by the economists, the practical thinkers know that ultimately man will have the last say.

I shall conclude by wishing the Minister, Foras Tionscal and all concerned with industrial development every success in their efforts. I shall do everything I can, both here and down the country, so that we may be able to reduce, by even one person per day, the number of those who have to seek employment abroad.

If there is one thing which has become obvious from our deliberations here and from what we have heard and read in the news in recent weeks, it is that we must have capital invested in large measure before any grant or loan from Government sources or from Government-sponsored institutions is warranted. I shall point to particular items that come to mind. One is the necessity last week to provide money for the development of St. Patrick's Copper Mines. I felt it was a very good thing for us to provide a direct loan of £250,000 for this company which had been floated on the Canadian stock exchange so that there was a sum of 6,000,000 Canadian dollars in Avoca as well as approximately the same amount from a credit company here and a direct payment from the capital side of the Budget.

When we give these loans and grants, if we are in for a penny, we are in for a pound, and we go into something which becomes a social benefit—something related to the employment of hundreds of men and girls in a project. From that point of view, I think it could not be stressed sufficiently strongly that we should insist on a pretty large measure of capital investment by industrialists before we put beside it sizeable grants and loans from Government institutions.

It must be remembered that the idea of the Undeveloped Areas Act is a social concept and while I am entirely behind such a concept—indeed, from my experience in County Louth where we have successful rural industrialisation, I can speak with some authority —anybody who has been in the villages Deputy Dillon mentioned can realise the necessity for bringing some employment there. I remember in a bye-election visiting Dromod, Dromsna and Jamestown in Sligo-Leitrim and finding that two houses in three in those villages were closed. It is quite important that something in the nature of this Act exists to try to do something about a situation like that.

I do not think this is a pipe-dream because in the village of Dunleer, we have 600 people employed in a G.E.C. plant and not five miles away, in two or three industries in Castlebellingham, we have another 150 employed— two areas where there were no industries of any kind heretofore. I met the principal of one of those factories which employed only girls. He spoke of the 50 girls working there and said: "I can tell you the standard of the work I am getting here is so far ahead of the parent factory at Stockport that we can undersell the parent factory as far away as Canada and the West Indies."

That is proof that we have here a pool of good workers in rural areas, something they have not got on the continent of Europe. Therefore, I believe if we do this thing well, we shall go from success to success and employ more people in these industries. But do not forget the situation also has its trouble. I am quite certain that if the Drogheda Chamber of Commerce heard me speaking now, they would immediately go for their guns because they will tell you they lost a factory because of the lack of the extra grants paid only in the case of underdeveloped areas.

They will tell you there was a proposal for a factory in the town to produce a type of fuel on the dockside but that they needed extra grants. The nearest place the sponsors of the industry could put up a factory and qualify for the extra grants was Athlone but that would mean moving this waste fuel to Athlone and the finished product back again to Dublin for consumption and shipment so that the cost of the operation would far outweigh any advantage there was in getting the extra grants and establishing the industry in Athlone.

That means that everything in the garden is not so rosy and I think we must look at this in a more flexible way—that no matter what Government is here in the next five years, unless some flexibility is introduced, it will be a case of all the Deputies of the undeveloped areas yelling to keep the status quo and all of us who are not in these areas shouting the other way. There will have to be flexibility, and the instance I suggested to the House where we lost an industry entirely because the extra grant was not applicable to a place which had a particular label on it is proof of this necessity for flexibility. How we are to do that, I do not know, but there are types of industries which suit undeveloped areas and some which do not. Is it not quite obvious that the Aspro factory should not have been established on the Naas Road but somewhere like Belmullet, because you can put enough Aspros to cure all the sick heads in the country into one lorry?

The Deputy is not suggesting we have not got any sore heads in the west?

The Taoiseach suggested there might be some sore heads in Claremorris.

The factory I mentioned which employ 600 people in Dunleer spent a fortune round the corner from Earlsfort Terrace on a building which was to be its distributing centre because they thought they could achieve more efficient distribution from Dublin to all parts of the world. They found, however, that the range of their products was such that they could not do it, that they had to keep their stock at the point of manufacture. That is one industry which would not be suited at all to Belmullet. It just would not exist if it were not established somewhere like Louth or Dublin.

My point is that you can get far too hidebound and that legislation as it stands is, in fact, far too hidebound and too tight. We must not approach this matter in a parochial way but in a manner which will benefit the country as a whole. My view is that whoever does it in the next five years, if this legislation still stands and we enter the Common Market, it will be changed and made more flexible. You will find you are losing industries because of what I point out. That does not mean I do not want to see an industry based in the three villages I mentioned where two out of three houses were empty and where I saw fine shops which had not seen a coat of paint for some ten to 15 years.

Deputy Corish made a point with regard to juvenile labour. One of the criteria of a good employer is that he does not employ a small boy, unless he feels there is some hope of giving that boy a man's wage when he reaches man's estate. If you watch factory employment and employment which is not messenger boy employment, you will find that the badge of a good employer is that that is what he does. He does not have three or four boys around the place for money saving purposes. He has, perhaps, one or two boys and what he is trying to do is to bring them to the stage of 17 or 18 years when he takes them on.

The fact was mentioned that from an expenditure of £15 million, we hope to get 10,000 new jobs, of which 5,500 will be for men and the balance for women. The expenditure is £1,500 per worker. I do not know whether that figure includes trading capital. Some people thought that figure was high. I am quite certain it is extraordinarily low and I am also certain that it does not include trading capital. If you had them putting rubber bands on bundles of match sticks which are extremely scarce at the moment, as well as sick heads, you would find that, if trading capital is included, you could not look at employing one person for £1,500. The figure would be nearer £3,000 or, perhaps, in some industries, it would be far greater. I hope we will have this pool of workers and the flexibility. I should like to see that introduced in this Act.

We are merely passing a Supplementary Estimate and I wish it the very best. I hope the money will be well spent. I know that the people in Foras Tionscal are doing their best. Whoever is here this day five years, flexibility will have to be introduced. Did we or did we not lose the Dupont people to Northern Ireland? I do not know. I can only base my views on rumour and if rumour is right, we did, because we did not compete outside the undeveloped areas with the incentives offered in Northern Ireland. One does not legislate here as if one could pontificate as well as legislate. It is not a case of giving these people what you were going to give them and that they had nowhere else to go.

What counts here is a change in the legislation to give greater flexibility, not for the purpose of looking after places like Louth or Kildare even though unemployment could possibly be more unpleasant especially for a man with a family in those places than in the undeveloped areas. It is not for the purpose of giving them the advantage. It is not for the purpose of stopping development in the undeveloped areas. It is for the purpose of getting all the fish we cast our net for and making sure that some do not escape.

Cuirim fáilte roimh an Meastachán seo mar leanfar leis an airgead atá dhá iarraidh nó leanfar leis an obair mhaith atá ar siúl.

The Minister in his opening statement indicated that the provisions of the Act would expire in 1963 and that long before that time, he would introduce a new Bill. I was wondering whether, in the event of our entry into the European Economic community, the grants and subsidies would be permissible. I think it is one of the principles of the Rome Treaty that not only tariffs but subsidies will disappear. I should like a statement from the Minister indicating whether I am right in suggesting that it may be necessary for us to withdraw what may be regarded as subsidies and which are, in fact, subsidies to the industries not alone in the western areas but in other parts of the country as well. That is something we should know in advance for industrialists, especially foreign industrialists.

I do not think the facilities given by the Undeveloped Areas Act are at all the greater attraction. Having met some of these people, I find, as I am sure many people who have been in touch with them find, that the chief attraction for these people in this country is the free availability of labour. Such labour is capable of being trained very quickly and is very receptive of training in the industrial field.

I find that is the major attraction. That gives rise to a situation in most parts of the west for which the 1952 Undeveloped Areas Act was passed. It gives rise to this situation. While larger numbers of children are at school, we find that part of the population is migratory and that the figures registered at the labour exchanges are not, in fact, true figures of the potential availability of labour at all.

In any town in Donegal, there are a certain number of unemployed ready to be put on the labour exchange, if an industry is started. Some of those would not be employable. Some of them are possibly too old for industrial work but that number is not the number that would be available for employment but a far larger number, especially of the younger people, boys and girls, who emigrated over the past few years and who have not settled down in employment in Britain, who, indeed, do not like the employment in Britain and who would prefer to live in their own home surroundings in Ireland, if they could get continuous, steady, all-the-year-round work.

I maintain that in our efforts to attract industrialists to the West of Ireland, special emphasis should be laid on the fact that not alone have we the registered numbers on the labour exchanges available, but, over and above that, there are those who have emigrated and who would come back in the morning if suitable, fairly decently paid work were available. This idea of grants and subsidies has, due to the over-employment which the Western European countries have at the moment, been relegated to a place of secondary importance. The important item now is the availability of labour and the type of labour that can be readily trained.

I have just been wondering over the past couple of years, looking at Press reports of industries which were started under the aegis of Foras Tionscal, whether any direction was given to industrialists who came here to establish an industry as to where they should go. I feel that the three Ulster counties of Donegal, Monaghan and Cavan have not received a fair percentage of the overall industrial development under the 1952 Act. That is a mistake. Special emphasis should be given and special efforts made in respect of the setting up of industries in these three border counties, in view of the situation in the Six Counties. We should show here that progress is being made all over the country, so that the people up North cannot say that everything is going to the south of Ireland. That is an everyday statement up there.

While we welcome and encourage foreign investment in industry here and especially in industry in the West of Ireland I think that the dice should be loaded in favour of Irish enterprise. I think that if Irish businessmen come forward with a proposal the grants they get should be that little bit more generous than in the case of a similar proposal backed by foreign capital. It is only right that we should try to have Irish capital invested in this country. We all know that Irish capital is going outside and being invested in Britain and we should encourage our own people who have the capital to invest it here by leaning over a bit in their favour in the way of higher grants. The statement has been made here that we welcome the foreigner with a bigger smile than we do the Irish. I do not believe that but I do suggest that we should encourage our own people by giving them higher grants.

When proposals are brought before the Industrial Development Association and Foras Tionscal, it should be remembered that the people who have got together to make these proposals have put much effort into their work. Many pots are scraped to get together the necessary local capital. I do not think it is right that these people should be told in a very brief note that their proposal has been rejected. They should be told on what grounds it has been rejected and we should go so far as to suggest to them what could be done to improve the proposal.

If the proposal is a dud, they should be told in what respect it is so. These people may try to get further capital together and go ahead with such a project, despite the fact that it has been turned down because of the expert opinion of Foras Tionscal and others who have an intimate knowledge of the set-up and the export market. Why should that expert opinion not be passed on to the small group of people who are doing their best to bring industries to the western counties? It is only fair that they should be told why the proposal is bad and if it is really very bad, they should be told that it has no hope of success. If a proposal is such that it nearly reaches, but does not quite reach, the winning post, they should be told the reason, so that they may be able to come up with sufficient ammunition for success.

I do not know whether any effort has been made to interest people in the fishing industry. I do not know of any industry which has such a source of raw material available and I wonder if any aid has been given by Foras Tionscal to the establishment of a fish processing industry. If no such aid has been given, it is an awful pity. Here we have a raw material freely available at home and, with the experience we have had since 1952, it is a pity that we should not try to develop it. That reminds me that when an application is made for a grant to set up an industry, the grant should be slightly bigger if that industry is one which uses raw material produced here, from the farm, the sea or elsewhere. The grant should be bigger in that case than if the raw materials have to be imported.

The previous speaker more or less blamed the Government and Foras Tionscal for not having done more to capture the Dupont industry which went to the Six Counties. I do not think he was right. I do not think anybody here is to blame for that. There was a rumour that we could have got that industry but that we missed it. He suggested that if we had allowed them to start in a certain place rather than in the West of Ireland, we would have got the industry. I can say that, looking across the Foyle, on one side, you have the Dupont industry and on the other side, you have an area which qualifies for these grants. The fact is it was not a case of their not wanting to go to a place like Donegal; they actually did go to a place right across the Foyle which probably had the same drawbacks as any of the undeveloped areas on the northern bank have.

I welcome this Supplementary Estimate. I hope the good work will continue. We have had failures, and these failures have been mainly associated with foreign investors. The latter have an unfortunate habit of pulling out, and their pulling out means that the know-how is gone; the industry comes to a full stop. I suppose one must take a chance with these. As far as I know, greater care is taken now to ensure that the mistakes made in the past do not occur in the present or will not in the future. I understand that before any grant is given, a complete checkup is carried out. Experts are sent to investigate the parent company. That ensures that we know what they are like in their own environment; if they behave in a similar fashion here, all will go well.

I have spoken to the Minister about a proposal concerning my own part of the country. I think he is putting too many difficulties in the way. He may know better than I do; he may have all the facts before him. I know that there is always a difficulty where a new industry is established and people are put into employment, settle down and build houses, etc., etc; if the industry folds up after a few years, then the last state is worst than the first.

I share some of the misgivings expressed by previous speakers in relation to the operation of the industrial grants policy. I should like to make it clear at the outset that I think the Minister should avail of this opportunity to proclaim once more our willingness to receive foreign industrialists and should make it clear to all who may be in doubt that both sides of this House agree it is a good thing to bring in foreign industrialists. There has been too much ill-informed criticism in recent months. We have heard references to the German invasion. It is regrettable that some of our people thoughtlessly take their cue from the British Tory Press, deploring foreign industrialisation of this country.

Like my colleagues in Fine Gael, I welcome the turn-about of Fianna Fáil policy in relation to foreign investment here. The Government should pursue that turn-about to its logical conclusion and repeal in toto what remains of the Control of Manufactures Act. That is another day's work. I can recall that one of the first effects of Fianna Fáil coming into power in 1932 was the closing down of Gallaher's tobacco factory at East Wall Road because it was British controlled. Fianna Fáil have learned a great deal since then. That is a good thing for the country as a whole.

I am glad Deputy A. Barry has returned because I want to express my agreement with his general remarks on the social policy upon which we are basing our industrial grants system. There is a good deal in what he says when he speaks of the sentimental approach to the industrialisation of the West of Ireland. It is futile to look to industry for the revitalisation of small towns and villages where many obstacles confront those who start a manufacturing industry.

The total investment by the State and foreign participants is, the Ministers tells us, in the region of £15 million representing 122 companies. I consider all these industries far too small. Deputy Dillon pointed out that the industry which will succeed in the future is the automated industry. Automation requires vast capital. We are all familiar with the concept and the economics of large-scale production. In order to have any chance in export markets resulting on entry to EEC, our industries will have to be based on large-scale production. Establishing a small factory employing 50 or 60 people, many of them girls, in a country town for the purpose of revitalising that town is not based on sound industrial economics.

It is generally accepted that the industries that will succeed in the future are those which manufacture for a world market on a large scale. They have tremendous differential advantages and lower costs of production per unit produced. Too many people, including members of this House, sometimes get involved in local agitation for an industry here and an industry there; there is too much of that clamouring going on between one town and another.

Put them all in Dublin.

If employment opportunities are created in the country as a whole, we should welcome that evolution. Artificial inducements to locate industry in one place rather than another can be overdone. I am sure the Minister is aware that a growing number of people are thinking on these lines. There have been too many failures of small-scale industries established with the aid of Government grants in recent years and a number of those failures are causing many people serious concern.

There is too much talk about failures. There have been very few but every Deputy who stood up spoke about failures and left it at that.

How many have there been?

There are just two failures we know of.

Even two are too many. The question of transport costs is a very serious one for these rural industries. I was talking to a German industrialist recently who told me that transport costs in Ireland were higher than he had experienced in any other country in Europe and he has factories in most countries in Western Europe. It might be worth considering providing a transport subsidy for these rural industries on a revenue basis rather than providing them with issued capital in the first place which may result in their entering into industry, as other speakers have pointed out, in an under-capitalised state.

The principle of providing State grants is a very sound one. We must industrialise, but I feel very strongly that it should be done on a larger scale, through larger companies. As I have said before, if the Minister would save up all the money he has in mind for making grants, instead of giving small grants of £50,000 here and £40,000 there, and come along with £1 million or £2 million in his hand for some of the industrial giants of America or Britain, firms like I.C.I, and say to them: "There is £2 million. Match it pound for pound with your own money and start an industry, anything you like, in Ireland——"

We have not baulked yet at any capital sums.

I welcome that, and I should like to avail of this opportunity of congratulating the Minister on the recently announced aircraft industry which has been established with French participation and with Irish Government grants. I feel very strongly that these large-scale industries are the ones which should avail of what should be the basic raw material for Irish industry in the future, namely, brain power. Other speakers have expressed the idea that the best natural sources for our industries are agricultural products. The industries which succeed in other countries are those which engage in considerable research. The industrial worker of the future will need to be a highly skilled technician. We have no lack of brains in this country and if they are properly developed by industrial training courses and apprenticeship schemes, I am convinced that the industries which make most use of this highly developed brain power are those which will succeed.

We all know the story of terylene, the wonder fabric, which is being used more and more and which was discovered after years of research. The firm which discovered it could afford to employ workers on research and their policy has paid off in ample dividends. However, the small-scale industry working on capital of £25,000 or £50,000 cannot engage in such research and is unable to avail of highly-developed Irish skill and brains.

Accepting the fact that foreign industry is desirable, I agree with previous speakers, particularly Deputy Corish, that we should endeavour to maintain some measure of control over these industries. The precedent of appointing a Government-nominated director to private industry is one with which we are all familiar. The Industrial Credit Company, when it takes shares in a company, invariably appoints its representative to the board of directors and, as Deputy Dillon said, even if the State does not draw any profit out of these companies, it is very desirable to have a watchdog-director there representing the public interest.

There is another aspect of that which I should like to impress upon the Minister. We should make it clear to foreigners coming here who are not familiar with our way of life that we are not trying to create a haven for wealthy industrialists, that we are plain simple people who live modestly, that we are not trying to create here a playground for millionaires, that we expect our workers to be well treated, that our fabric of industrial relations is based on the trade union movement and we will not countenance any failure on the part of foreign industrialists to deal with Irish workers organised in the usual manner through trade unions.

There is another suggestion I wish to make to the Minister. We have too few industries which operate profit-sharing schemes with their employees. The worker who has invested years of labour in an industry is as much entitled to a share of big profits, if they are made, as much entitled to a share in the control of that industry, as a small investor who puts £100 or £200 into it. The Minister should use all the influence he can to persuade foreigners coming in here to operate their industry on a profit-sharing basis. He would thereby be protecting the position of the worker and setting a very sound example to Irish industry on a global basis.

Coming back to this point of the size of the industrial unit, it seems to me the Minister should concentrate his efforts on one or two towns which he should endeavour to industrialise fairly largely. I am not for one moment suggesting that industries which should be coming to Dublin are going to other parts of the country. On the contrary, I deplore that parochial approach. Dublin is already too big for the size of the country, but it is about time to start considering the building of new towns, which we know of from England where they built completely new towns of 50,000 population, towns like Harlowe and other places. If the Minister were to take one or two towns in the West of Ireland and try to develop them intensively, he would find it a policy which would pay dividends.

We must at all costs avoid the romantic approach in our endeavours to industrialise rural parts. Business cannot be built on sentiment and romance, and the idea of revitalising some of these small towns in very pleasant parts of the country does not appear to be sound business in the light of current economic development.

Progress reported; Committee to sit again.
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