asked the Minister for Industry and Commerce if he is aware of the danger of collapse of the shirt industry in County Donegal; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - County Donegal Shirt Industry.
7.
As I have stated on a number of occasions during the past few months, I am seriously concerned about the difficulties at present confronting a number of sectors of industry in Ireland, including the shirt-making industry. I have been endeavouring to ensure that everything possible is done to relieve these difficulties in so far as they are due to trading conditions in the home market. However, in the case of the shirt-making industry it appears that one source of difficulty is depressed demand in the industry's major export market.
As regards the home market, I have explained on a previous occasion the constraints imposed by our international obligations and the steps I have taken within these restraints. These include: an arrangement for the limitation of the volume of shirts imported from Korea; the investigation by the Dumping Commission of possible dumping of shirts from various sources; an intensification by the Revenue Commissioners of their existing systems of control and scrutiny of import documentation; proposed introduction of a system of surveillance of all clothing, including shirts— that is being done now and discussions with the British authorities.
To what period do the 30,000 referred to in a previous supplementary relate?
The figure was 3,000 dozen.
The figure which the Minister gave me for shirt imports from Korea alone was 67,000. Can the Minister say whether the restrictions and constraints to which he has referred in his last reply and in reply to the previous question apply to all third countries?
They do not apply to all third countries. There are two specific restraints, one is the low cost quota system which applies to 16 countries in the low cost category and many of which are Far Eastern countries. The arrangements with South Korea are unique to Ireland and are separate from those other arrangements because at the time of the arranging of the low cost quota South Korea was not a significant exporter. There are other arrangements at Community level with other very numerous countries of the world where, in very low cost circumstances, there is the development of the textile industry and the endeavour by exporters to build up markets in the Community. These are the common external arrangements of the Community as a whole and all of them are in force.
Is the Minister aware that of the dozen or so shirt factories in County Donegal two or three have closed, that others are about to close and that all remaining ones are on short time? The Minister's refusal to meet a joint deputation from the Buncrana Urban Council and of other representatives of that area, together with people involved in the shirt industries, is totally out of line with what Britain is doing. Is the Minister aware that the British Government have come to the rescue of shirt factories in Derry and in Northern Ireland generally in a big way?
This is a very long question.
Can the Minister say what restrictions apply to this country which do not apply to other member countries of the EEC, such as Britain?
Regarding imports from countries outside the Community, we operate the same regime as all other member states. Other countries engaged in the shirt and textile industries are experiencing the same difficulties as ourselves but they have all avoided having recourse to the sort of restrictions of trade which Deputies on the other side of the House are calling for. Regarding movement between members of the Community, with the rapidly eroding tariffs that exist, free trade exists, but the forms of aid to which the Deputy referred in respect of Derry were in the nature of direct financial aid.
What is wrong with that?
There is nothing wrong with it. I would remind the Deputy that in 1974, the last period for which I have figures, the amount of grants paid to the textile industry was £2.3 million while the amount of grants approved was £33.6 million and the amount of loans from Fóir Teoranta was £1 million. For a country of this size and for an industry of the size in question, those were substantial sums. They indicated a real effort to help those industries in difficulties.
Question No. 8, please.
Is the Minister aware that the statement he made indicated that the main cause of the closure of factories was the failure of the Irish shirt industry to get into outside markets? Would he not admit that the main causes of the shut down in the industry are (1) direct imports from third countries and (2) the indirect imports to Britain from third countries and their re-exportation from there to this country?
This is becoming a debate. We must move on to the next questions.
Has the Minister taken any action to deal with these two matters?
I do not agree with the Deputy's diagnosis. In my view there are two major reasons for the situation. There is the decline in the level of orders, the decline in purchasing in our export markets and its intensification of difficulties for shirt producers and for comparable industries in every country of the Community and also in every country of the world.
We have the added difficulty of a rate of wage inflation which is presenting a real problem of cost for our producers. That, too, is a very major cause of the situation. Before leaving my office today I prepared notes on 13 separate heads of activity in which we have engaged so as to help the shirt and textile industry, starting with grants, going on to loans, to export promotion, to design service, to management advice through the confidential evaluation service of the NPC, reorganisation studies, to control of South Korean imports, of imports from the low cost areas, to the surveillance mechanism, to the Revenue Commissioners mechanism of intensification of scrutiny of documents, to the EFTA negotiations and to the anti-dumping investigations and the approaches turned down, regrettably, by the European Commission. The efforts to invoke article 135 of the Treaty were turned down.
Is the Minister aware——
The Chair is anxious to make progress on the other questions.
——of the number of factories that are closing their doors and, since Donegal is a major shirt producing county, would he be prepared to meet a deputation of the interests involved who will be able to give him any advice he may need regarding the plight of the industry?
The Chair has allowed a lot of latitude on this question. Only seven questions have been dealt with in half an hour. I am calling Question No. 8.
There is not much point in the Minister talking of something that might be of benefit to someone in 20 years' time.
Would Deputy Cunningham allow questions to proceed?
Would the Minister say, having regard to what he describes as the very real efforts and the substantial investment made in 1974 and the hopeless position which exists now and the fact that no efforts are being made now, what are his hopes for 1976?
The purpose of giving the 1974 figures is that they are the most recent I have. I talked about the year for which the figures exist. I do not have figures for this year. There is no slackening of effort. While the situation is very serious, it would be much worse without the steps taken. I do not accept that it is hopeless. The position is difficult but not hopeless.
Would the Minister meet a deputation of the people who are suffering?
Yes and I have no knowledge of ever having refused to do so.
The Minister has.