I beg to move recommendation 1:—
Section 7. To delete the section.
When this Bill was being discussed on previous stages, I expressed a certain amount of doubt with regard to Section 7. I said that, on the whole, I did not intend to oppose it. The reason I put down this recommendation for the Report Stage is because I want to appeal to the Minister to reconsider the effects of the whole section. If the House agrees to accept this recommendation, I feel that the Minister, between to-day and the time when the Bill will come before the Dáil, will be in a position to obtain representations, which he has not yet been able to obtain, from various persons who may be very seriously affected by this section. To the best of my belief this section was put in at the last moment in the Dáil and the persons who may be affected by it had no proper opportunity of interviewing Deputies or bringing the matter to the notice of the Minister. I am in a certain amount of difficulty, for this reason: I do not want to be making prophecies as to ill-effects, but I am absolutely convinced that there are very grave dangers in this section and that it is quite possible it may operate in a way very much different from what the Minister anticipates.
When Senator O'Farrell raised the matter yesterday I almost spoke in support of what he said but, on second thoughts, I felt I would like to make further inquiries. This morning I made inquiries and, as a result, I am quite satisfied, not that this is going to do a great deal of harm, but that there is very grave danger of its doing harm. I am strongly of the opinion that at least some weeks, but preferably a couple of months, should elapse so as to enable the Minister to examine the whole question. There are two sets of trades that may be affected by this provision, one of them the motor traders generally. I have already expressed doubts as to how far this will enable the chassis to be put together here. The only gain to the State under this section is that if the chassis is put together there will be a certain amount of employment as a result. I think before the Minister makes this law he should go into the question a little bit further in order to see whether the gain, as a result of the making of the chassis, is anything like equal to the risk he is running as to damage being done to other employment.
There are, of course, considerable stocks of parts here and, to put it plainly, I think I may say that the motor trade, taken as a whole, simply has not had time to think out exactly how this may affect it. Considering that this was sprung on the public only a week ago, I would urge the Minister to allow himself time to hear representations as to the exact effect on the different sections in the trade. The effect on the motor trade was not the principal ground which made me decide to bring this recommendation forward on this stage of the Bill. I had decided, though I was very uneasy and doubtful about it, to let it pass but a question raised by Senator O'Farrell yesterday impressed me very much and I made further inquiry to-day. I do not know whether or not the Minister reads the "Irish Press," but I am sure he will be gratified to know that I read that paper as well as other papers. In the "Irish Press" this morning, I found a letter from two persons utterly unknown to me but from inquiries I have made I am pretty well satisfied that what is stated in that letter is substantially correct. I shall read the letter, if I may, because it states the case more briefly than I could do it:—
"In connection with the Finance Bill at present before the Seanad, we think the public should know how it will affect an existing Irish industry and a number of Irish workers.
"The Bill proposes to remove the duty on unassembled motor parts, with a view to the development of an assembling industry in this country. Apparently no account whatever has been taken of the effect on an important Irish industry. The manufacture of motor parts and the reconditioning on engines are, however, healthy, well-established industries, and some 150 hands are employed therein. In some of the concerns, capital to the extent of £5,000 has been invested;
—I happen to know that in some of the concerns a larger sum has been invested—
up-to-date machinery has been installed, and workers have been trained to a very high degree of skill. About six exist in Dublin; two in Cork; two in Limerick, and one in Monasterevan, and there may be others. They have all arisen because of the substantial tariff that prevailed, and there is no chance whatever, in view of present conditions in other countries, that they can exist without it.
"It is stated that the Minister ‘hopes for' an assembling industry as the result of his strange action. Is it fair or reasonable to sacrifice existing industries and employed people for a hope? There will be few who will not sympathise with that hope, but it was not necessary to sacrifice us to achieve it. Whatever his revenue officials may say, there would be no difficulty in arranging for the free importation under licence of parts for assembling purposes—a course which was urged, we understand, by representatives of the whole motor trade.
"It is not yet too late for the Minister to reconsider his decision. By doing so, he may avoid many a taunt and many a regret. But still more, he will avoid the bitter resentment of one hundred people who claim no more than that they should be allowed to continue in the employment that in present circumstances means so much to them and their families."
The Minister knows that I am not anything like as out-and-out a protectionist as he is, but I have always held that where an industry is protected the greatest care and inquiry should be taken before the tariff is removed. What I am asking the Minister to do is to withdraw this section for a month or two months. He can wait until the Bill comes before the Dáil or he can deal with the matter in his next Finance Bill. When the matter is investigated, he will be able to say whether there is any way by which this tariff can be maintained for this admittedly small, but not negligible, industry. Even though it is a small industry, I hold that it is dangerous to bring in this provision, which may seriously affect it. I was given particulars of one of these firms, which has doubled its trade and increased its employment very substantially since 1925 in the making of parts here.
In addition to the effect on these particular firms there is grave danger that even existing garages may be affected, because it will be possible to send over existing parts for repair to England, when—without going into the exact details of the section—the repair is concerned with welding or soldering or various other things. In these circumstances, the parts will come in free. As to that effect, I frankly do not know and I am not prepared to prophesy. What I suggest is that it should be looked into carefully. In the making of motor parts here some machinery is, of course, required, but of the total cost 80 per cent. is represented by labour. The motor trade has been so hard hit within the last few months that if these firms are crushed out the chance of the men disemployed being absorbed in any of the existing garages is practically nil. Here is the position: rightly or wrongly, by the policy carried out by this Government, the motor trade has been hit. Whether that is their fault or not, I need not argue now. Probably the Minister and I would differ as to that, but the fact that the motor trade has been hit is undoubted. This provision came to the notice of the people interested a week ago, and we are now being asked to pass it. I beg the Minister to let the matter be considered for another month. He may go on with his policy. No harm will be done. No assembling worth talking about is going to be done within the next month. He could then bring in a short Bill. That would be the proper solution. If he is not agreeable to that, let this be passed and let the matter be considered for a fortnight or whatever time will elapse before it will come before the Dáil.
I was rather uncomfortable as regards the provision at first but I decided to let it pass on the previous stages. Having gone into the matter further, I put down this recommendation because I believe there has been far too much haste and that the matter has not received full consideration. I am not attacking the Minister. I do not believe that there is any Minister who has anything like as much work to do as the Minister for Industry and Commerce. I know of my own knowledge that he is doing his best to deal with an enormous number of industries and with a great number of problems. On this matter, I think he has not got full advice. I do not think that time has been given to people who may be interested to represent their views and, as this means taking off a tariff, I ask the Minister not to rush into it. I am sorry that the Minister for Agriculture is not a member of this House because I am certain that he would support me in this recommendation. He gave us to understand that the last Government was a free trade Government and would not have protection. This is a case of having retained protection for a small industry. I am sure, therefore, that the Government will consider it carefully and will not hasten to take away that protection. I beg the Minister carefully to consider this matter. He can easily bring in a Bill in February, after he has made investigations, if he is satisfied that it is the right thing to do. I also suggest that, as stated in this letter, a way would be found by which licences would be given for the free importation of parts for assembling purposes without taking the protection away for parts that are regularly made here.