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Dáil Éireann díospóireacht -
Thursday, 4 Dec 1969

Vol. 243 No. 3

Imposition of Duties (Confirmation of Orders) Bill, 1969: Second and Subsequent Stages.

I move:

"That the Bill be now read a Second Time."

An explanatory memorandum has been circulated for the information of Deputies.

The purpose of this Bill is to confirm eight orders made during 1968, under the Imposition of Duties Act, 1957, and the Finance Act, 1962. It is a statutory requirement that such orders must be confirmed not later than the end of the calendar year following that in which they are made if they are not to cease to have statutory effect at the expiration of that period.

The first of these Orders, No. 169, provided for the remission of the customs duty on imports from Canada of certain conifer wood. The order also provided for an increase in the rate of customs duty for imports of certain motor cars of Canadian origin. The Canadian Government agreed to the amendment of the trade agreement between Ireland and Canada to provide that Canadian goods, on importation into Ireland, would continue to be entitled to admission at the special preferential rates of duty to which they were entitled before the Anglo-Irish Free Trade Area Agreement came into force, subject, among other things, to the remission of the duty on conifer wood. If left unamended, the agreement between Ireland and Canada would have required the extension to Canada of the reduced rates of duty applicable under the Anglo-Irish Free Trade Agreement to goods of United Kingdom origin. The reduction in duty on imports of this wood from the United Kingdom and other countries was necessary in order to comply with the provisions of the Free Trade Area Agreement and the General Agreement on Tariffs and Trade. It was also provided that the special preferential rate enjoyed by Canada in respect of certain motor cars should be eliminated. This was desirable in connection with the scheme for ensuring the continuation of the Irish motor assembly industry.

Notice taken that 20 Members were not present; House counted, and 20 Members being present,

The next Order, No. 171, restored protection for certain solid fuel stove-type boilers and for certain shaped pieces of polyurethane material. These goods had inadvertently become free of duty as a result of the introduction of the new Brussels nomenclature form of tariff classification. During the negotiation of the Free Trade Area Agreement an understanding was reached with the British Government about the restoration of protection in such cases.

The third Order, No. 172, enables the rates of duty at which fully builtup motor vehicles may be imported under licence to be varied, in accordance with the scheme for the motor assembly industry. The purpose of this scheme, which was agreed with the manufacturers and assemblers of British motor vehicles, is to ensure the continuation of the Irish motor assembly industry on a long term basis.

Order No. 173 provided for a reduction in the minimum specific duty on stockings of silk or man-made fibres of United Kingdom origin. Before the Free Trade Area Agreement was negotiated, all stockings of silk or man-made fibres were subject to import quota restrictions and to ad valorem duties. It was originally intended that when the agreement came into force these quota restrictions would be abolished. Following representations by the Irish stocking manufacturers, British agreement was, however, secured to a proposal to make stockings of a value not exceeding fifty shillings per dozen pairs subject to a quota arrangement and a minimum specific duty, in addition to the existing ad valorem duty. The British Government later requested the abolition of the minimum specific duty on the grounds that it prevented British manufacturers from availing of the import quota to which they were entitled under this arrangement. Following further negotiations with the British Government and consultations with the Irish industry, the minimum specific duty was reduced from sixteen shillings to twelve shillings per dozen pairs, this rate to stand still until overtaken by the normal reductions under the Free Trade Area Agreement.

Order No. 174 was made by the Government on the recommendation of the Minister for Finance. It provided for the third tariff reduction on goods of United Kingdom origin in accordance with the terms of the Free Trade Area Agreement. In addition, the Order provided for the maintenance of the special tariff concessions in favour of certain goods of Northern Ireland origin and gave new tariff concessions on cellulose tape and tyre valves of Northern Ireland origin; reduced import duties on rose bushes and certain bulbs, tubers, et cetera, and certain rubberised textile fabrics, in accordance with commitments made by the Government in the Kennedy round of trade negotiations; it raised from 2,000 to 3,000 copies the average circulation limit for exemption from the import duty on daily newspapers and made a number of editorial changes in the form of customs tariff.

Order No. 175 imposed a duty on imports of tufted material. In 1965, the Government imposed a minimum specific duty of 15 shillings per article on tufted bedspreads, in addition to the existing ad valorem duty, in order to protect the Irish manufacturers against imports of tufted bedspreads made from low-cost cotton. Subsequently, a new trade developed in the export from Northern Ireland of tufted material in the piece, made from low-cost cottons, which was not itself liable to duty. This material could be converted into bedspreads at a minimal cost, thereby circumventing the duty on tufted bedspreads. Following representations from the Irish manufacturers and negotiations with the British Government, it was decided to impose a duty on imports of the tufted material.

Order No. 176 provided for the restoration of customs duties on imports of coated copy-making film. This film is another item which had inadvertently lost protection in the changeover to the Brussels nomenclature form of customs classification and protection was restored in accordance with the undertaking with the British about such cases.

Finally, Order No. 177 imposed a duty against imports of certain crown corks from sources other than the United Kingdom and increased the rates of duty applicable to certain plastic footballs imported from countries other than the United Kingdom. In order to simplify the new tariff, that is, the Brussels nomenclature form of tariff, certain suspended duties, among them one on crown corks, were removed on the introduction of this tariff in 1963. It was found, however, that the home manufacture of crown corks was threatened by large-scale low-priced imports from the Continent and a duty was reimposed at the request of the manufacturers. The duty on certain plastic footballs from sources other than the United Kingdom was increased following an application by the home manufacturers who were unable to compete with imported plastic footballs, particularly those from East Germany. This increase brought the duties on these footballs into line with the duties payable on other plastic balls.

I shall be glad to give any further information required in connection with the Bill.

We appreciate the fact that the Minister wants to have this Bill before the end of the year. We will facilitate him in that, but there are some points on which I should like clarification. Order No. 169 deals with conifer wood. Would the Minister tell us the amount of duty involved? I have an idea that we import a good deal of wood from Canada. Motor cars are very rarely imported, and then only privately, from Canada. I do not see why this is necessary.

I am assured it is.

Last year, the Minister said this was introduced in connection with a scheme designed to assure the continuation of the Irish motor assembly industry. For the peace of mind of those engaged in the industry, it is, I think, now time that we should be told what this scheme is. There are about 5,000 employed in the industry and it seems to mean certain articles of the EEC will militate against the continuation of the industry and, if the Minister has a scheme, I should like to hear what it is. The workers involved would also like some information and so would a very well-paid section of the community.

Order No. 173, silk for man-made fibre stockings from the United Kingdom, seems to be something the Minister has given rather freely to the British. I am wondering if he got any concessions in return or is there some other thinking behind it? Before the Free Trade Area Agreement these were subject to import quota restrictions. It would look as if the Minister has conceded something here. Did we get any concession in return? Was this freely given on our part? Were we bargaining or, when the British asked, did we just concede it?

Order No. 175 deals with tufted bedspreads. It seems rather a pity that, in protecting our industries, we should hit industries in Northern Ireland. I have always felt that trade between the two parts should be encouraged to show our goodwill. However, I accept it was necessary to impose the duty in this particular case.

With regard to the coated copy-making film, there was another instance in which goods were inadvertently included in an abolition of duty. I believe there will be a number of these. I would ask the Minister to make the order as quickly as possible because difficulty could be created if too many of these things came into the country at the same time.

I did not know we were making plastic footballs, but I am delighted we are.

To take the last point first, the reference to plastic footballs may sound slightly comical, but I happen to know something of the background. The firm making these is in the west of Ireland and it is the second largest manufacturer of plastic footballs in this country and Britain.

I am delighted to hear it.

It is well worth looking after. With regard to the motor assembly scheme, I gave full details to the House of this scheme when dealing with the Motor Vehicles Registration Act which was introduced to give legality to the arrangement arrived at; the Bill was fully discussed and full details were given. The future of the industry here in the long term is assured.

Even under the Treaty of Rome?

Yes. We believe it is. On the question of the stockings, Deputy Barry wonders if we gave something away to the British. Originally, under the Free Trade Area Agreement, quota restrictions designed to protect the Irish manufacturer were to be abolished but we subsequently got the British to agree to the retention of the quota. This was their concession. As a result of the arrangement made they found they could not avail of the quota; they could not even supply what we were allowing in by quota and they came back to us and said: "Look, we agreed to what you asked and now we cannot even use the quota." We did, in fact, negotiate with them and consulted with the industry. So I think it can be taken that we have not given anything away that we should not have given away. In fact, this originated out of the British concession to us.

The bulk wood would come in under the 50/- category?

Yes, that is right.

It is no trouble to the British to breach an agreement and get away with it.

Not that kind of arrangement, no, I am sorry I did not quite get the Deputy's inquiry about the Canadian wood.

What is the amount of duty involved there? Without knowing, I would guess that there is quite a large amount of wood imported from Canada which is not free of duty now, as far as I can see.

The actual receipts from the duties—is that what the Deputy wants?

Mr. Burke

Yes, how much are we going to lose?

I am afraid I have not that figure.

Could the Minister say if it would be substantial?

I do not think so, as far as I know. The rate of duty on conifer wood of net finished thickness of one-and-a-half inches and over, planed but not further manufactured from Canada and the UK would be reduced to nil and the rate for imports from all other countries would be reduced to 13.3 per cent; so that the 13.3 per cent, relatively, is not a huge duty and I think the Deputy could take it that there would not be a great deal involved for us.

It would depend on the quantity of wood.

Yes, I am not speaking with authority on this but from what I know I think the bulk of our wood comes from Scandinavia rather than Canada. I am open to correction.

I also am open to correction but I think a very large proportion of our wood would come from Canada although I think the Minister is correct and that the largest amount comes from the Scandinavian countries.

I am sorry but the figures for receipts from that duty are not available to me at the moment.

Question put and agreed to.
Agreed to take remaining Stages today.
Bill put through Committee, reported without amendment, received for final consideration and passed.

This is a Money Bill and is so certified under Article 22 of the Constitution.

As regards No. 15 (Vote 41) on the Order Paper, owing to the unavoidable absence of the Minister this item is postponed by agreement with the Whips of all parties and will be taken in the morning. The House, therefore, moves to the question on the Adjournment, notice of which was given by Deputy Clinton.

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