asked the Minister for Economic Planning and Development the nature of the off-setting action contemplated by the Government in line with paragraph 4.3 of the White Paper on National Development to aid Irish firms faced with competition from abroad.
Ceisteanna—Questions. Oral Answers. - Aid for Irish Firms.
22.
Aids such as the UK temporary employment subsidy have put some Irish firms in the older labour-intensive sectors of industry at a trading disadvantage. As announced in the budget speech on 1 February 1978, the Government have decided that Irish firms engaged in clothing, footwear and certain areas of the textile industry will, with effect from the beginning of April, be assisted by a payment of £5 per week in respect of each worker on their payroll. This is intended to offset the effects of the UK scheme on Irish industry. Details of the scheme will be announced as soon as possible.
I find it difficult to hear when two people are speaking at the same time.
We all do.
Would the Minister mind repeating the reply?
It is not my fault that you could not hear the reply.
There is no necessity to shout at people. I asked you courteously if you would mind repeating the reply. If you do not want to do so, just say no and I shall accept that.
I am quite happy to repeat the reply if the Chair so wishes.
The Minister will please repeat the reply to No. 22.
Aids such as the UK temporary employment subsidy have put some Irish firms in the older labour-intensive sectors of industry at a trading disadvantage. As announced in the budget speech on 1 February 1978, the Government have decided that Irish firms engaged in clothing, footwear and certain areas of the textile industry will, with effect from the beginning of April, be assisted by a payment of £5 per week in respect of each worker on their payroll. This is intended to offset the effects of the UK scheme on Irish industry. Details of the scheme will be announced as soon as possible.
Would the Minister not agree that our effective capacity for intervening is sharply limited by our international trade obligations to the kind of temporary, short-term financial measures he has described, and in consequence would he not agree that the impression given by the White Paper that we can give a substantial measure of relief to these firms is deeply misleading?
No, I do not agree with the Deputy's remarks. I have always held that any sovereign government has a significant amount of power and discretion in the way in which it exercises that power either to promote or to hinder the development of its own industry. The subject matter of the question relates to policies and programmes of other member states of the Community which are in our view at variance with any obligations as members of the EEC. To that extent, therefore, it is possible for this Government to take effective action.
The Minister said there were some conditions attached to this. It is being brought in on 1 April —is that correct?
Yes.
One of the conditions —the Minister will correct me if I am wrong—announced by the Minister for Finance in his budget speech was that they would operate only as long as the British scheme remained in operation. Is that correct?
Yes.
One of the conditions —the Minister will correct me if I am wrong—announced by the Minister for Finance in his budget speech was that they would operate only as long as the British scheme remained in operation. Is that correct?
We said that was our intention because it was introduced due to the adverse effects of the British scheme.
The Minister for Finance was more definite. He said it would operate as long as the British scheme continued to operate. The British scheme goes out of operation at the time of the next British budget, which will be some time in the middle of April. Does this mean that if it goes out then the Irish firms will get the benefit for only approximately a fortnight?
No, I do not accept that at all. The Minister for Finance's statement was not an exclusive condition. He was making the point that so long as the British scheme operated in its present form we would guarantee the continuation of our scheme. But there is no reason why we cannot also continue our scheme if there is any other scheme, of the British or other governments affecting our industry——
If the British scheme is terminated at the time of the next United Kingdom budget will our scheme continue?
The Deputy can be assured that the Government will continue to take whatever action is needed to safeguard the interests of our industry.
Does the Minister think the measure announced by the Minister for Finance will be decisive in restoring the position of competitiveness in these sectors which has been lost in consequence of the British temporary employment subsidy?
The only way to find out if it is decisive is to see the scheme in operation. The action is intended to help restore Irish industry to its previous position. If for any reason the scheme does not succeed in that objective then we are in a position to come forward with whatever revision of policy is necessary.
The remaining questions will appear on tomorrow's Order Paper.
Could I have Question No. 404 as a written reply?
That will be arranged.