asked the Minister for Industry and Commerce if he has examined the extent of the participation by multi-national corporations in the economy of this country; if he regards such participation as a cause of anxiety; and, if so, whether he proposes to take any action to deal with the situation.
Ceisteanna—Questions. Oral Answers. - Multi-National Corporations.
150.
There is not sufficient statistical material available to enable me to determine the extent of the participation by multi-national corporations in the economy of this country. A particular difficulty arises in this connection from the fact that there is as yet no sufficiently precise and internationally accepted definition of a multi-national corporation.
A certain amount of anxiety has been expressed in many countries, developed and underdeveloped, about the phenomenon of the multi-national corporation. International organisations of which this country is a member, including the EEC and OECD, are considering a number of measures designed primarily to keep this matter under review in the interests of workers, shareholders and consumers and also to ensure that more useful comparative statistics will be available in future. This country will be taking an active interest in these proposals.
Is the Minister aware that the Commission of the EEC have submitted a draft resolution to the Council of Ministers on the question of a policy towards multi-national groups? Can he give us any information regarding that resolution or regarding our attitude towards it?
The information I have here indicates that, in answer to a question from a British Member of the European Parliament as to how much of industry in the EEC is held by American-based multi-national companies, the following reply was issued and I quote:
(1) At the present time, no provision in the EEC Treaty or in Community legislation authorises the Commission to ascertain the nationality of persons controlling undertakings established in the whole of the Community. Thus, the statistical facilities required to supply the information requested by the honourable member are lacking
(2) The Commission has made no forecasts and, moreover, forecasts would be extremely unreliable, particularly because of changes in the exchange rates of the dollar and the uncertainty surrounding the flow of investments on both sides of the Atlantic.
I do not know when that reply was given in the European Parliament but there has been prepared a draft resolution dated 7th of November, 1973. This resolution was submitted by the Commission to the Council of Ministers and deals with such matters as the protection of employees in multinational groups.
Could we have a question please?
Is the Minister aware of the existence of this draft resolution and can he say what is our attitude towards it?
As I said in my original reply, the EEC, as well as other international bodies, are considering a number of matters designed primarily to keep this matter under review in so far as the interests of workers are concerned. This includes a draft directive which is under consideration at present by the EEC envisaging measures designed to protect both shareholders and workers and to ensure that adequate competition is maintained. I have no additional data on that.
Would the Minister not consider it desirable, indeed essential, in view of the all-important role which these multi-national corporations are now assuming in modern trade and commerce that we should prepare as accurately as possible information as to the extent of their participation in our economy, the sectors in which they are operating and whether or not our economy is to any extent vulnerable because of this participation by these multi-national corporations? I am not just talking about oil in this context. Does the Minister not think that it is a situation of which we should be taking very important notice and on which we should be compiling our own statistics and our own information?
The Deputy will understand in circumstances of which he is aware a Minister who is deputising for another Minister would not be wise to make broad announcements on general policy. I shall try to answer the Deputy as far as I can.
I thought the Minister was an expert on everything.
Order, please.
I should like to try to answer Deputy Haughey's question as far as I can.
I will raise it again.
Very well. In partial answer to the Deputy's inquiry a departmental report on State participation in industry here is now nearing completion. This will contain a certain amount of data about the extent of foreign penetration in Irish industry and commerce.