asked the Minister for Industry and Energy in view of the continuing increase in the volume of imported materials which could be produced here, the action he proposes to take.
Ceisteanna—Questions. Oral Answers. - Imports Increase.
3.
The Deputy will be aware that as a member of the European Communities, Ireland is generally precluded from restricting the import of materials produced in other member states and may act against non-EEC imports only within the framework of Community policy. The maintenance of international competitiveness under the headings of price, quality and delivery performance, together with the development and availability of new products, are essential if Irish firms are successfully to compete against imports on the domestic market. The extensive services and expertise of the State agencies are available to assist Irish industry in this regard.
Would the Minister agree that in the 1980-81 Foras Forbartha review they identified areas of imported building materials to the extent of £170 million which could be substituted here? In the review published a few weeks ago following a big drop off in building they said the amount has increased by £20 million. Instead of making headway the Government seem to be going backwards in reducing imports of unnecessary building materials and components.
There is definitely a problem here which is widely recognised. There could be a greater development of home supply for the building industry and other industries. Successive reports not just on the building industry but also on multinational industries located in Ireland have indicated very large markets for small Irish firms which are not being filled. For that purpose the IDA have established a project identification unit. They use a computerised record of all the components brought in by industries located here. People who think they could produce something on that very extensive list are given all the assistance possible with regard to specifications, and so on, to enable them to get into production. I agree strongly with Deputy Leonard that there is considerable room for expansion in this area. People who think they might be able to set up an industry supplying anything being imported at the moment should contact the IDA, because at present they are laying special emphasis on this type of work.
Would the Minister agree that, from the pathetic reply he has given, it is obvious his Government have no policy in the area of import substitution? He and his Government continue to give us this excuse of the European Court decision despite the fact that other European countries, particularly Britain and France, have got around this situation and are very active in their policies of ensuring import substitution.
The Deputy will probably be aware that I have taken a number of initiatives on behalf of the Government to counter protectionism in Europe. I believe, the Government believe, and Deputy Fahey might also believe if he reflected for a moment, that protectionism such as he is advocating is directly contrary to the interests of a small country like Ireland. There is no other country in the EEC, except Belgium, which relies as much on exports as we do—almost 50 per cent of all we produce is exported. If we take action which leads to retaliatory action somewhere else, we have more to lose than they do. It would be very foolish for us to provoke action in a war we cannot win. I believe very strongly, therefore, in pursuing the approach I have outlined, which is a positive one, not of seeking sanctions against imports but of developing and giving incentives to existing Irish industries to supply needs which could be supplied from the home market but which are imported simply because nobody here has produced the quality product needed.
Would the Minister agree that most of the products used in the building industry—bricks, concrete products, floor covering and so on — can be manufactured by low technology industries and we have the necessary factory space lying idle at present? Does the Minister think the IDA are doing all they can in this area? Would he also agree, since 80 per cent of the materials used in this industry are heavily subsidised by State agencies, that it is incredible that the Department cannot insist that Irish made materials are used? According to the reports on the timber industry, we should be self-sufficient in timber by 1984. This year we are importing materials and timber components for the building industry worth over £100 million. Rather than trying to meet this demand, the Department appear to be falling down ——
I would like to ask for the co-operation of the House in handling Question Time in a reasonable manner. Thirty-five minutes have passed and we are still on Question No. 3.
This is primarily the responsibility of the Minister for the Environment. However, I agree that the point made by the Deputy is reasonable. As to his advocacy of discriminatory practices against imported products, I would like to tell the House that, as estimated by the IDA, these practices by other countries have cost us 2,400 jobs. We have been trying to eliminate discriminatory State purchasing practices in Europe because, as a country with high unemployment and with a greater reliance on inward foreign investment than other European countries which have established industries, we believe we have more to lose as a nation from the building up of protectionist walls in Europe than we have to gain. That is a judgment I made. It may not be a judgment Deputy Leonard or his friends agree with, but I believe it is the right judgment.
On a point of order, the Minister has gone off on a tangent. He is not answering the question he was asked.
I answered the question I was just asked.
We must move to the next question. We could spend all day discussing this, but I am calling Deputy Mac Giolla and then Deputy Brennan.
Accepting the Minister's views in regard to EEC imports, would he not agree that a source of major concern today for Irish industry is the amount of non-EEC imports? Could he quantify that for me? Can he do anything about the situation?
I do not have the trade figures here to give the Deputy the information he wants, but as he knows imports from non-EEC countries by EEC members are governed by overall Community policy.
What are the Government's positive policies in relation to the timber industry? Is the Minister aware that the timber factory in Fermoy closed down five or six weeks ago with a loss of 70 jobs? This factory was closed down because they could not get contracts——
That is a specific question and the question on the Order Paper is of a general nature.
What does the Minister intend to do about the timber factory which had to close down because it could not get contracts for timber from the Department of Forestry?
That is a separate question. I am calling Question No. 4.