asked the Minister for Industry, Trade, Commerce and Tourism if he has noted the recent comments of a person (details supplied) regarding the failure of Irish suppliers to make a suitable range of Irish produced goods available to supermarkets; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Irish Produced Goods.
10.
I have noted the comments referred to in the Deputy's question. The Deputy will be aware that the IDA published in January last a study entitled "Consumer Foods: Ideas for Development", which identified a range of new consumer food products which have potential for production here. The study also underlined the important role the wholesale and retail grocery trade could play in the further development of the Irish food industry.
I have met recently with representatives of the supermarket groups and I will be having discussions shortly with the independent wholesale and retail grocery trade. The purpose of these discussions is to explore what useful role the retail and wholesale trades might play in overall economic and industrial development. The IDA study is among the issues being raised in the discussions.
I must stress, however, that it is a matter for private enterprise to exploit any opportunities that arise as a result of the IDA's study and the follow-up promotional work undertaken by the IDA. If new proposals emerge as a result of the study, appropriate financial and other assistance will be provided for viable projects.
Might I correct one point? The meeting with the wholesale and retail grocery trade took place yesterday.
Will the Minister agree that there is a great opportunity there for development not alone in the food industry but in other areas of consumer goods? Will he agree with me that the supermarket chains should be more forthcoming in working with the IDA, especially the small industry section, and helping them identify market trends — something they do anyway? Will the Minister agree that if there was closer co-operation a considerable number of jobs would be created and new projects got under way? Will the Minister make his best efforts to bring those areas together and explore the opportunities that exist? In my view they can be exploited because at the end of the day it is in the interests of the supermarkets that the economy is viable and that the money is kept for jobs here.
I am glad the Deputy asked that question. I could not agree more with him. There are tremendous opportunities and a lot of good things that supermarkets can do to help Irish manufacturers, particularly in the food area, to get going by giving them an opportunity to have a guarantee of displaying their products. Own-brand products offer an opportunity for small manufacturers to get involved without having to undertake the development of their own independent brand image as an initial step. I also think that the contractual arrangements made by the supermarkets with the companies in their infancy should be such as not to impose undue cash flow problems on the companies in the early stages until they get established. I am proposing — I have already done so in one case — to meet all the major supermarkets to impress this point on them. I have got a reasonably good response from a general meeting with them. I intend to meet each one individually. I welcome what the Deputy has said and I would welcome his support, and the support of his party, for what we are trying to achieve in this area. In the interim, any influence any member of the public can bring to bear on supermarkets in this direction would be most welcome.
The Minister can be assured that he will receive our support.
11.
asked the Minister for Industry, Trade, Commerce and Tourism if he will consider allocating sums for the purpose of assisting a county trade fair based on local industries for the purpose of better marketing at home and abroad of manufactured goods in our small industries.
Marketing assistance is given to small industries by a number of State agencies notably CTT in relation to the export market, and the Irish Goods Council in relation to the home market.
The Irish Goods Council are the body who are principally concerned with providing assistance in respect of local trade fairs. I understand that their overall policy in this regard is to make organisational expertise available, together with modest funding, in certain cases, subject to there being a significant level of financial support and commitment at local level.
Will the Minister agree that a fresh look should be taken at this area because quite a number of local communities have a lot of activity going on but do not get an opportunity of showing their wares with a view to encouraging the home or export markets? I should like to refer to such an event last weekend in Ballyhaunis which was opened by the Minister for the Environment, Deputy Kavanagh. That was a marvellous success and if the Minister checks with his colleague he will learn that it was a great indication of what is possible in a small community if goods manufactured locally are put on display. It encourages extra growth in national and international sales. Will the Minister agree to have another look at this?
The Irish Goods Council are involved in assisting local fairs of this type. They have participated in exhibitions in such areas as Bray, Navan, Portlaoise, Dublin, Cork and Galway.
I am trying to get CTT interested.
There is a certain difficulty in getting a multiplicity of agencies involved. If CTT are involved with the Irish Goods Council there will be confusion of roles. I believe it is better to leave it to the Irish Goods Council if they are domestic exhibitions. Clearly, it is open to CTT to assist in flying in foreign buyers to an exhibition but helping an exhibition itself is better left to the Irish Goods Council.
Will the Minister agree that the Irish Goods Council have limited funds available for this type of work although a lot of the produce on display at such fairs is internationally orientated and aimed at the export market? Will the Minister agree that CTT could be usefully regarded as having a very important role to play in that area?
Where an exhibition has an export dimension CTT certainly have a role to play and I will encourage them to play it.
12.
asked the Minister for Industry, Trade, Commerce and Tourism the steps he proposes to take to entice the consumer to purchase more home produced goods; and the estimated total value of goods imported that could be produced in Ireland and the number of jobs that this would create.
The European Court of Justice, in a judgment made in November 1982, found that the organisation by the Government of promotional campaigns of the "Buy Irish" kind on the home market was inconsistent with obligations under the Treaty of Rome. I understand that the Treaty of Rome does not prevent such schemes being operated by private individuals or groups and that a number of private groups are in fact currently operating such schemes here. I note, for example, that the Guaranteed Irish Scheme which formerly operated under the aegis of the Irish Goods Council, was recently relaunched by private interests.
I am convinced that the maintenance of international competitiveness under the headings of price, quality and delivery performance, together with the development and availability of new products, is essential if Irish firms are to compete successfully against imports on the domestic market. The extensive services and expertise of the State agencies are available to assist Irish industry in this regard.
I understand that there are no official statistics which would enable an accurate answer to be given to the second part of the Deputy's question.
Is the Minister in a position, from the facts available to him, to give the House an indication of the estimated import penetration of the home market in the various categories of industry?
They do not seem to have this information available in the form the Deputy wants it. I am aware that certain estimates have been made in regard to the food sector.
Has the Minister those estimates?
Unfortunately, I do not have them with me. The latest figure is that there are approximately £250 million of food imports altogether. I believe that somewhere in the region of half of those would be substitutable. I am speaking from memory. I do not have the type of general statistical information the Deputy seeks. However, the various agencies are working on the production of data banks in respect of individual sectors where imports, particularly by industry, could be produced by Irish industry for other Irish industries. They are being identified on a data bank in the IIRS with the co-operation of the IDA. That type of practical information is available on a data bank. I would refer people to the IIRS. On global statistics, there seems to be a deficiency in this regard.
The Minister obviously has taken some interest in this as far as food imports are concerned. I agree with what he said particularly when one considers that fruit and vegetable imports between 1977 and 1982 rose from £52.7 million to £149 million while dairy imports in the same period rose from £10.7 million to £31.2 million. Will the Minister agree that it is time the Government embarked on an import substitution programme, similar to one that was introduced by the last administration? Will the Minister indicate his willingness to continue his efforts in the hope that he will be able to do something about the problem?
The Deputy will appreciate that under the relevant court judgment dealt with in my reply there is not the legal capacity for the Government to get involved in financing import substitution in the way the Deputy may have in mind.
Will the Minister support the confederation one?
The whole purpose of my discussions with the supermarkets is to encourage them to use their financial power to help domestic suppliers develop.
If the Minister and the Deputy wish to have a debate on this they will have to find another opportunity.
This represents about 50,000 possible jobs here. Does the Minister agree with that figure?
It is very large, I agree.
It would solve a lot of our problems.
Is the Minister aware of the "Buy British" campaign and that in Government purchasing they have been encouraged to buy British? Is the Minister aware they they have been requested to make a monthly report of their purchases to a central co-ordinating agency? Will the Minister agree that there is great scope within the Irish State purchasing situation for a similar practice? Will the Minister agree that this can be set up in such a way that it does not infringe EEC regulations?
In areas such as telecommunications and defence countries have exemption from the normal requirements in regard to the non-discriminatory purchase of goods. It is contrary to EEC rules to enter into discriminatory practices in regard to public procurement. Industries located in Ireland have suffered considerably in their export efforts as a result of contravention of this requirement by certain member governments, and I have complained about this matter. I went specially to Brussels to meet the Commissioners Narjes and Andriessan to complain about this question because of the damage it was doing to industrial development in this country. However, I do not think the best way to get rid of it is to start practising it ourselves.
Would the Minister accept that a vast amount of State purchases in both the semi-State and public sectors have gone abroad that could easily have been purchased at home if serious efforts were made and if identification of the requirements was given in time to Irish companies so that they could have geared up for it? There is room for improvement in that area without infringing any regulations.
Anything that one can do without infringing regulations we should do to make available the necessary information to Irish tenderers to put them in a position to compete and, through normal industrial development activity, help them to be in a position to produce the necessary goods.
Has the Minister a watchdog in his Department watching this?
I am very much aware of this problem, as was Deputy Reynolds when he was Minister. We are watching carefully what we can do within the law to encourage the development of Irish industry in the public procurement area. However, we are interested in exporting Irish goods to other governments as well as simply selling them to our own. Because we are a small country, 50 per cent of what we produce is exported and we cannot confine Irish industry within our boundaries.
What about EEC regulations?
I am prepared to investigate the allegations the Deputy has made about the "Buy British" campaign. If those are contrary to EEC rules certainly I will complain about them to the Commission.
Good man.
Let me interrupt the proceedings to ask, with your permission, Sir, to raise on the Adjournment the issue of 70 redundancies at Albatros, New Ross.
The Chair will communicate with Deputy Byrne.