asked the Minister for Industry and Commerce if he is aware of the worsening situation in the footwear industry; whether he has held discussions with Irish trade union and employer interests and the British authorities concerning the need to stem the volume of imports; the outcome of the various discussions; and if he will insist on the Anglo-Irish Free Trade Area Agreement being amended to deal with the situation.
Ceisteanna—Questions. Oral Answers. - Footware Industry Situation.
36.
I am fully aware of the situation in the footwear industry and I have had discussions with both union and employer interests.
There have been discussions also with the British authorities at official level about the footwear industry, in accordance with the provisions of Article 1 (15) of the Anglo-Irish Free Trade Area Agreement, which makes provision for dealing with industries that have encountered or are threatened with difficulties as a result of the operation of the agreement. These discussions have not been concluded. In the meantime, the tariff reduction on leather footwear, due to take effect on 1st July, 1971, has been suspended until the report of the Committee on Industrial Progress on this industry becomes available in a few months, when the discussions will be resumed.
There are adequate provisions in the free trade area agreement for dealing with any difficulties that arise in the footwear or other industries as a result of the operation of the agreement. The question of amending the agreement for dealing with the position in the footwear industry does not, therefore, arise.
Would the Minister agree that the representations made to him by the interests in the trade, the union and the employers, were of a strong, compelling and unanimous nature and indicated clearly that already serious dislocation has taken place and that the continued operation of the Anglo-Irish Free Trade Area Agreement constitutes a serious threat to the future of this industry? In the circumstances will the Minister tell the House why he has been unable to impress on the British authorities the urgent need to stem the large volume of imports into this country? Why has the Minister not been able to do for the footwear industry what his colleague, the Minister for Foreign Affairs, has been able to do in respect of the motor assembly industry?
In one case it is our application for membership of the EEC that is concerned while in the other what is involved is the alleged effect of the Anglo-Irish Free Trade Area Agreement.
Alleged?
The situation is that the volume of employment in the footwear industry at present, by comparison with the volume of employment in the industry at the time that the Anglo-Irish Free Trade Area Agreement was entered into, compares favourably. In fact, there are more people employed in the footwear industry now than there were at the time of the signing of the agreement.
Would the Minister not agree that the British authorities themselves have considered it fit from time to time to act unilaterally in order to protect their economy especially in respect of the recent levies applied? In the circumstances why is the Minister so reticent to act strongly on behalf of this industry?
I would point out that I am not being reticent in acting on behalf of the industry. Arising from what has gone on so far in the discussions, we have introduced a standstill in the reduction of import levies. In fact, the levy was due to be reduced from 22.5 per cent to 18 per cent. This had not happened as of 1st July of this year and as I explained in my reply we await the report on the footwear industry which must come to hand before any final steps are taken.
The volume of imports is not being stemmed.
I would not accept that.
Can the Minister say whether the interim measures that have been taken in this respect and in respect of other cases are all confined to simply not reducing tariffs further and that none of them involves any measure of reprotection?
As I have stated in the reply, the discussions have not yet been completed but we have reached an interim stage. Until such time as the negotiations have been completed it would be wrong of me to give any impression as to what I expect to be able to achieve.
Can the Minister say if, in all these measures, the interim measures involve no more than the further reductions in tariffs and do not involve the reintroduction of formal protection?
The interim measures that have been taken have already been announced publicly and, in a number of cases, they involve a standstill. They involve no more than that.
Can the Minister say what proportion of the Irish footwear industry has been lost during the period of the Anglo-Irish Free Trade Area Agreement? Has the Minister any figures to suggest what proportion has been lost?
I have not got figures of the percentage of home market lost, but I reiterate one of the things I said on so many occasions, that we are still exporting almost twice as much in footwear as we are importing.
Could I ask the Minister when he thinks his talks with the British authorities will come to a conclusion?
I have already stated this in the reply.
Where?
The tariff reduction has been suspended until the report of the Committee on Industrial Progress on this industry becomes available in a few months when the discussions will be resumed.
I am not concerned with when they will be resumed but with when they will be concluded.
The conclusion of the discussions on footwear?
Yes.
The conclusion of your Ministry.
It will certainly be done before then—that is 1975.
Question No. 37.
I cannot allow the Minister to treat this important question in such a flippant fashion. I am asking him when his deliberations with the British authorities will be concluded amending the Anglo-Irish Free Trade Area Agreement.
There are no discussions at the moment with regard to amending the Anglo-Irish Free Trade Area Agreement. I also stated that in my reply and I do not think I have been flippant about it.
Are these continuing?
The discussions in respect of footwear will be resumed when we have the report of the Committee on Industrial Progress.
What will they talk about? Not about the Anglo-Irish Free Trade Area Agreement.
I am talking about footwear. The Deputy asked me if the discussions were with regard to amending the Anglo-Irish Free Trade Area Agreement. I told him that there was no question of amending the agreement.
The Minister is going to talk about something. What is he going to talk about?
Question No. 37. Could we talk about something else now?
He is putting his foot in it now.
My feet are always in footwear—Irish.