asked the Minister for Industry, Trade, Commerce and Tourism the level of import penetration in textiles for 1983.
Ceisteanna—Questions. Oral Answers. - Import Penetration.
7.
The information sought by the Deputy on the level of import penetration in textiles for 1983 is set out in the form of a tabular statement which I propose to have circulated with the Official Report.
Following is the statement:
|
Year |
Clothing |
Textiles |
Clothing & Textiles |
|
(i) |
(ii) |
(iii) |
|
|
1983 |
|||
|
All Countries |
73% |
89% |
81% |
|
Other Member States |
58% |
57% |
58% |
1. The above are approximate figures based on best estimates.
2. Import penetration is the estimate of Imports as a % of Apparent Home Consumption (Imports + Production — Exports).
3. Column (i) comprises articles of apparel and clothing accessories including knitwear.
4. Column (ii) comprises textile fibres and their wastes, textile yarn, fabrics, made-up articles, and related products, a large proportion of which are raw materials for further processing.
Not having seen the tabular statement yet, will the Minister agree——
That is the difficulty in asking a supplementary question in such a case.
Yes, but I have a fair idea of what is in the tabular statement. I think the Minister will agree that it will show a very extensive level of import penetration in the area of textiles. Will the Minister agree that it is due largely to the conditions of competitiveness that apply here and have done for the past number of years? Further, will he agree that the recently announced increase in ESB charges will make that competitive situation considerably worse. Is he concerned about that situation?
I dealt with this subject quite comprehensively in May 1984. By far the most significant share of imports are of EC origin and, because of our membership of the community, they must remain unrestricted. Furthermore, it is important to realise that a large proportion of our imports of textiles are raw materials for further processing and reexport. The complex nature of the industry must be appreciated.
Will the Minister not agree that the level of textile production here has decreased substantially year after year for the past decade? Does he accept that it is open to him and to his Department to make representations to the EC both so far as their own production is concerned and also so far as imports into the EC are concerned for a special arrangement for Irish textile producers that would enable a reasonable level of employment in that sector to be maintained here?
I will give some export figures for the Deputy's information.
The question relates to imports.
In 1981 we imported £565 million worth of clothing and textiles and we exported £419 million worth. The comparable figures for 1982 are £579 million and £436 million respectively, and for 1983, £628 million and £475 million respectively. As can be seen from those figures, while imports have grown successively in those three years so also have exports grown. I give those figures to emphasise the complex nature of the clothing and textile industry.
8.
asked the Minister for Industry, Trade, Commerce and Tourism if he will indicate the extent of building material imports into this country; the number of job opportunities lost because of these imports; and the steps he proposes taking so as to reduce the level of these imports.
It is estimated that building material imports in 1983 amounted to about £370 million and that some 50 per cent of these imports could be manufactured here and generate direct employment of about 10,000 additional jobs.
The development of the building materials sector is a matter primarily for individual firms themselves. However, there is a wide range of incentives and services available from the state agencies to encourage their development, and these agencies are already working closely with firms towards this objective, including the exploitation of the significant import substitution opportunities which exist.
I understand that the sectoral development committee is at present finalising a report on the building and construction industry, including recommendations for the future development of the building materials sector. This report will be carefully considered by the Government, on receipt, with a view to taking appropriate action to assist the development of the sector.
Can the Minister indicate the major countries supplying these imports and the major products being imported from those countries?
I have not got in my brief the origin of the imports. I have figures in general.
The major countries.
Having increased both in 1980 and 1981, imports of building materials declined by 6 per cent in 1982 and by a further 1 per cent in 1983. This reduction is due to the continuing recession in the building and construction industry, and also because there is a greater realisation on the part of Irish manufacturers of the importance of increasing their share of the Irish market. The principal imports in 1983 were timber and related products, £80 million, iron and steel, £34 million, electrical, £33 million, and floor covering £31 million. I will be happy to try to get some indication of the origins of the imports for the Deputy.
Is the import substitution unit now functioning in the Minister's Department, and what is the level of the staff complement?
I have not got that information here but, as I said, the Sectoral Development Committee is at present finalising a report on the building and construction industry. The Department will take full cognisance of the contents of that report.
The Minister mentioned import substitution. What units have been set up to deal with import substitution?
The Deputy can be assured that the State agencies are very much aware of the need for import substitution and are active, especially the IDA——
Is the Minister aware that in 1982 it was indicated to this House that an import substitution unit would be set up immediately for this purpose in the Department of the Environment? Surely he must be aware whether or not it is functioning. I want to know if it is.
I am not the Minister for the Environment.
What about the Minister's own unit?
I am sure the Deputy is very well aware of the ruling by the European Court of Justice in regard to Buying Irish. The less said about the matter the better.
It was indicated to the House on numerous occasions that import substitution units would be set up which would not contravene the EC Treaty. Is such a unit functioning in the Minister's Department? Yes or no?
Such a unit is not functioning in my Department.
A final supplementary.
The Minister mentioned the incentives which are available to companies to get involved in decreasing the level of their imports. Would the Minister care to outline a few of the incentives to which he has referred?
The Deputy will be aware of the activities of the IDA in this sector. There are other activities outside my Department which are also relevant, but upon which I do not wish to comment because primarily they affect the Department of the Environment.
9.
asked the Minister for Industry, Trade, Commerce and Tourism if he is aware of the increasing amounts of concrete products being imported into this country at unrealistically low prices, which is causing job losses here; and the action he proposes to take in this matter.
I am aware that some concrete products manufacturers, especially in Border counties, have been experiencing competition from imports from Northern Ireland. However, data available to me suggest that the level of imports has decreased in 1984.
The recession in the construction industry has been the main factor contributing to the problems of the industry here, though I recognise that imports have not helped in a situation where there is already considerable overcapacity in the sector.
While we all accept that the very deep recession in the building and construction industry has brought down the level of imports, would the Minister agree that there have been very serious job losses in Border counties? Will he accept from me that special facilities were made available at a specific custom post in Ballyconnell in County Cavan to accommodate importers of those types of products which are causing job losses down here?
I understand that a question about customs and excise matters has been put down to the Minister for Finance. Obviously it is not a responsibility of my Department to answer for the Minister for Finance. I have no proof that concrete product imports from Northern Ireland are at unrealistically low prices. The IDA are willing to talk to companies facing difficulties in the concrete products sector. They are encouraging companies to use feasibility or R & D grant programmes to identify new products and processes. The majority of concrete products are non-traded and large-scale export opportunities do not exist. I want to assure the Deputy that the IDA are very well aware of the position.
Further arising from the Minister's reply and a reply he gave to a previous question, would he agree with me that the very good reason behind the setting up of the import substitution unit in his own Department by me in 1982 was specifically to take note of what was happening in relation to imports and to replace them by import substitution products? Is he now saying that unit has been disbanded? If so, when was it disbanded, and does he not see a reason for its existence?
There was a ruling by the European Court of Justice on this matter.
I cannot accept that totally unsatisfactory response to my question. I ask the Minister whether he has disbanded the import substitution unit in his Department. That is directly relevant to the question on the Order Paper. Will he answer yes or no?
I have given an answer and I do not wish to expand upon it.
So it is disbanded. Shame on the Minister.
10.
asked the Minister for Industry, Trade, Commerce and Tourism if he is aware of the increasing amounts of cement being imported into this country; and the plans he has, if any, to ensure that only cement complying to specific standards is used in all Government assisted projects.
I understand that the volume of Portland cement imports in the first seven months of 1984, the latest period for which data are readily available from the Central Statistics Office, shows a reduction of about one-third over the corresponding period in 1983.
As regards the second part of the Deputy's question, so far as my Department and the bodies under its aegis are concerned, measures have already been taken with a view to ensuring that only cement certified to the appropriate Irish standard is used.
Is there a general directive from the Government in relation to the type of cement to be used not alone in State projects but in State-sponsored and grant-assisted projects?
The Department of the Environment issued a circular to local authorities stating that from 1 July 1984 Portland cement to be used in local authority building works in which they were involved, either by way of total or part financing, should be certified to the appropriate IIRS standard, which is IS 1/1963, as amended.
Is the Minister aware that cement is being imported and that there is no way of knowing at the point of entry whether it conforms to the standards about which he has already spoken? What measures does he intend to take to ensure that at the point of entry imported cement does conform to these standards?
At least the Minister brought in the requirement for the standard.
But do we know what standard the cement is?
I do not wish, a Cheann Comhairle——
That requirement already existed back in 1982, if the Deputy wants to know. A directive was sent out. I am surprised that a Labour Deputy would go along with the Department and not be interested in import substitution.
I am surprised that Deputy Reynolds had not brought in the standard.
I brought in the standard and set up two institutions which this Government have disbanded, if the Deputy wants to know.
Order, please. Deputy Reynolds is being disorderly.
Perhaps the Chair might have a talk with Deputy Taylor.
Deputy Taylor is being provocative.
For the information of Deputy Reynolds——
Order, please. Would you let the Minister reply?
——the Department of the Environment issued a circular to local authorities in 1983.
And back in 1982, if the Minister wants to check the records.
I do not want to over-stress this matter, Deputy.
Is the Minister denying that a circular was sent out in 1982?
Please, Deputy Reynolds will have to learn to control himself in the House. He finds it difficult, I know, but he will have to do it.
There is no point in putting false statements on the record.
I will state some facts, a Cheann Comhairle, if I get the permission of Deputy Reynolds to do so.
The Minister says it is 1983 and I say a circular was issued in 1982.
Deputy Taylor started up all this.
Irish Cement Limited supply 95 per cent of the Irish market. If Deputy Reynolds has specific complaints with regard to the operation of the IIRS standard——
Not with that.
—— he is quite at liberty to inform my Department, or the IIRS. It is a serious matter if in our buildings we are using substandard materials. If the Deputy has information, there is no point in his making political play out of it ——
I am not making political play.
—— on the floor of the House. If he wants to give information about specific cases, whether to my Department or the Department of the Environment or, more properly, the IIRS, then he is welcome to do so.
I resent the scandalous suggestion by the Minister that I am making political play out of this matter.
That is not a question.
If the Minister had listened properly to my supplementary question, he would have heard that it was in relation to the importation of cement that I was speaking, and at point of entry, not in regard to the standards set by the Institute of Industrial Research and Standards. Cement is getting in at the point of entry, to which those standards are not being applied. However, the Minister is not interested in that type of question.
I invite Deputies on all sides of the House to consider whether they think that they are making the best use of Question Time. In three-quarters of an hour we have dealt with ten questions. Would they just think of that?
I only ask supplementary questions of my own. The Chair should direct that to other Deputies.
I am directing it to everybody in the House.
Thank you.
11.
asked the Minister for Industry, Trade, Commerce and Tourism if he is aware of the serious level of food imports that exists at this time; the considerable job opportunities that are lost because of these imports; and the steps he will take to deal with the matter.
The Deputy will be aware that the question of food imports has been under serious consideration for some time. It is clear that the level of these imports, which reached £845 million in 1983, should provide opportunities for the provision of jobs and import substitution.
I have been seriously concerned, as indeed has my colleague, the Minister for Agriculture, about the apparent lack of success in supplying the market from home sources. Opportunities for import substitution are constantly studied, and there are several on-going activities relating to efforts to expand the food processing sector.
A number of actions have been undertaken which I feel have clarified the true position in regard to the level of substitution which may be possible. An interdepartmental committee was set up to carry out an in-depth study of imports, based on the 1982 figures. It is interesting to note that this committee concluded that, of the £753 million worth of food imported in 1982, only £200 million worth could reasonably be said to be substitutable. This indicates that the situation in regard to imports, while serious, is not as bad as might be generally believed.
At another level, last January the IDA concluded their study of imports as revealed at retail outlets. This study more or less confirmed the level of substitutability mentioned previously. It also indicated specific areas of opportunity for private enterprise to exploit. The Deputy may be assured that the appropriate financial and other assistance will continue to be made available in respect of viable projects in this area.
An important initiative in the food area which has been undertaken by the Government is the establishment of the Ministers of State Co-ordinating Group on the Food Industry. This group, which consists of the Ministers of State at the Departments of Foreign Affairs, Fisheries and Forestry, Agriculture and Industry, Trade, Commerce and Tourism have been given the task of examining the roles of the various Departments and State agencies involved with industry, with a view to streamlining their activities and maximising their contributions to the development of the industry.
Finally, I would point out that membership of the EC means that we are in a free trade situation. This means that our market is open to imports, but it also entitles us to free access to other EC markets and to the benefits of the Common Agricultural Policy. These have enabled us to export £1,743 million worth of food in 1983, that is, over twice the value of imports to this country.
The Deputy will appreciate that, while efforts will continue to be made to achieve the maximum level of import substitution, we must remember that, if the Governments in our principal export markets pursued a similar strategy, serious difficulties could be caused for our food processing industry, which relies so much on export markets.
That is a very comprehensive reply from the Minister. Would he include in it, if possible, the type of statistics he gave in answer to Question No. 8? That is, the value of the total amount of food imports competing with the home manufactured product and also the number of jobs which could be created?
That seems to be a separate question.
He gave that information in answer to Question No. 8, which was a similar type of question.
Perhaps it was put that way.
No, it is the same thing. He mentioned 50 per cent, giving 10,000 jobs.
I cannot indicate the number of jobs, but I have given a clear indication of the value of imports that could be substituted. That is around £200 million. How that would reflect on employment is difficult to ascertain.
Would the Minister agree that the estimated value of competing products would be in the sum of £600 million and that food imports have grown eight-fold in the last eight years? Would he agree that with fruit and vegetable imports totalling £155 million last year, he should be taking some positive steps? I must reiterate what Deputy Reynolds said — it is a pity that the imports substitution unit has been disbanded. Would the Minister agree that the Government have thrown in the towel as far as imports in this area are concerned?
Really, the Deputy should realise that we are in the EC and that we rely on markets in the EC being open to our products, as well as our products being open to the markets in the EC.
"This entitles us to free access to EC markets" Is the Minister suggesting that there is free access to the French market for all lamb products in this country? Is he suggesting that there is free and unrestricted access to the French markets?
While I would have some personal historical knowledge of this I would suggest that that question is proper to the Minister for Agriculture.
Arising out of the Minister's reply, which was interlaced with comments like "serious consideration for some time", "constantly studied", "ongoing studies", "interdepartmental committees", and ended with a flourish saying that in-depth studies were going on in this area, is one single food technologist employed by the IDA who spent £3 million during 1983 on the development of industry? Will the Minister take some positive steps to reduce the "only £200 million" which he says could be substituted in food imports?
I am satisfied that the necessary expertise needed by the IDA is available. Indeed, they produced their report in January of 1984 entitled Consumer Foods — Ideas for Development which is primarily identifying areas of import substitution. We are a free trading nation——
Nobody is disputing that.
It is up to the business acumen of the people in this country to grasp the opportunities that are there in relation to food import substitution.
What about IDA spending?
If we want to go on to IDA policies, IDA expenditure on grants is extremely high and I do not think that the Deputy would wish to belittle it.
I would think that they would employ a number of food technologists.
Is the Minister satisfied that enough expertise exists already within the institutions? Perhaps he will explain to the House why in the plan Building on Reality they say they are now going to employ an international consultant in the food industry.
This was a concept that was proposed to the committee — and we welcome it — that we would take an independent consultant with specialised knowledge in the marketing area who would help us in our work of identifying the needs of the food industry and also ensure the maximisation of the use of the resources of Government. The appointment of a consultant would be very helpful to the food committee in reaching a constructive and positive report.
(Interruptions.)
Would the Minister of State agree that the only inescapable conclusion from the answer and the figures he has given is that private enterprise has failed lamentably to cope with this problem and that the only reasonable course forward now would be to call upon the semi-State bodies under his aegis to intervene actively in this field?
We are a private enterprise country. Many co-operatives are involved in the food industry and I feel that they are tackling the opportunities fairly well. I hope too that the establishment of the NDC will be of assistance in this area over time.
(Interruptions.)
I am calling Deputy Foley and Question No. 12.
The Minister of State quoted £200 million as being substitutable at home. What items of food does he include in that figure?
I imagine that that is a separate question.
Perhaps the main items would be cereals, cereal preparations, vegetables, fruit and feeding stuffs for animals and that would constitute nearly three-quarters of the total figure.