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Dáil Éireann díospóireacht -
Tuesday, 16 Dec 1969

Vol. 243 No. 9

Ceisteanna—Questions. Oral Answers. - Anglo-Irish Free Trade Agreement.

1.

asked the Taoiseach if he will make a statement on the talks between Irish and British Ministers on the Anglo-Irish Free Trade Agreement; and what proposals were made to the British Government to help redress the adverse trade balance between Ireland and Britain.

2.

asked the Taoiseach if he will make a statement on the recent Ministerial discussions which took place in London on the Anglo-Irish Free Trade Agreement.

3.

asked the Taoiseach if at the recent discussions on the Anglo-Irish Free Trade Agreement the question of EEC membership was discussed; and, if so, if he will make a statement on the matter.

4.

asked the Taoiseach if he will make a statement on the outcome of the recent Anglo-Irish trade talks in London.

5.

asked the Taoiseach whether in the light of the trade talks recently concluded any revision of tariff reductions under the Anglo-Irish Free Trade Agreement is contemplated by the Government.

6.

asked the Taoiseach what progress, if any, was made at the recent Ministerial discussions in London.

7.

asked the Taoiseach if he will make a statement on the Anglo-Irish Free Trade Agreement talks which took place recently.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 1 to 7, inclusive, together.

Deputies will have seen the text of the statement issued following the meeting of Irish and British Ministers in London on the 10th December: copies of the statement are available in the Library.

As indicated, the Minister had an exchange of views on the applications of the two countries for membership of the European Communities. In the light of the Free Trade Area Agreement, arrangements were made for continuing consultations during the coming months and for close liaison during the course of the negotiations.

Ministers had a further discussion on access to the British market for Irish agricultural products and on developments affecting trade in industrial goods. They also had a general review of other aspects of the operation of the Free Trade Area Agreement and economic relations between the two countries.

Irish Ministers reiterated their concern at the extension of the British import deposit scheme. British Ministers explained the circumstances which had led their Government to extend the scheme, though at a reduced rate of deposit. They emphasised that it was their Government's intention to terminate the scheme as soon as the British balance of payments position permitted.

As discussion of these matters is to be continued at a further Ministerial meeting to be held at the beginning of the New Year, I feel it would not be appropriate for me at this stage to indicate the specific submissions made by the Irish Ministers.

In view of the fact that the import deposit scheme is a breach of the Free Trade Area Agreement, have the Government considered making representations to the British Government to accept liability for the charge which the Exchequer here has to bear in refunding the amount to exporters?

The British Government have never accepted that this was a breach of the Free Trade Area Agreement and, because of that, there would be no possibility of their accepting liability for compensation in that way. However, we have been trying and, to some extent with success, to get compensation in other ways as the result of the position.

In view of the recent statement by the Minister for External Affairs to the effect that, in his view, we will be in the EEC by 1972, would the Taoiseach say whether there was any specific discussion on the further reduction of our tariffs on British imported goods in July next?

As I have said already, the full details of the negotiations as they have taken place have not been disclosed. It would be imprudent at this stage, since the meeting was only the first day of a continuous meeting, to disclose the details but I can assure the Deputy that that matter and other relevant factors will be taken into account.

May I take it that submissions will be made to the British Government to the effect that we should not further reduce our tariffs because the reduction of next July will have an adverse effect on Irish industry and on Irish employment?

The question of a reduction of tariffs was a matter under discussion and I would not like to comment on it further.

Would the Taoiseach agree that, when the Government originally signed the agreement, we assumed that the full effects would not come into operation prior to our becoming a member of the EEC and that it now looks, whatever the Minister for External Affairs may think optimistically, that we will not be in membership of that Community for, possibly, three or four years? Therefore, could the Taoiseach give an assurance to the House that this question about which Deputy Corish asked —that there should be some amelioration or reduction in the tariff position on our side—will be discussed at the next meeting to ensure that those tariff reductions do not take full effect next year because chaos will result in Irish industry if they continue?

The Deputy has made a number of assumptions in asking for this assurance. I can only tell him that, in so far as is possible, cognisance will be taken of the fact. In any event the full effects of the agreement or, might I suggest, the full benefits of the agreement, will not be felt until 1975 which is later than the Minister for External Affairs suggested we might become members of the EEC.

Question No. 8.

Would the Taoiseach agree that we must seek a lessening of the effects of that agreement? The Taoiseach knows that our balance of payments position is bad and that it will be worse next year and the agreement will make its own contribution to that worsening balance of payments position.

I would not attribute the balance of payments position entirely to the agreement.

Would the Taoiseach not agree that the agreement is working far more favourably for Britain than for Ireland and that imports from Britain to this country have been increasing at an alarming and even dangerous rate during the past five or six months? They are increasing at a rate that is dangerous for our workers and our industrialists.

Our imports from many parts of the world are increasing much too quickly and the Government will have to take account of the situation whether in the Free Trade Area Agreement or in the handling of the economy generally.

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