Seanad Éireann díospóireacht -
Tuesday, 9 Jul 1974

Vol. 78 No. 12

Export Promotion (Amendment) Bill, 1974 ( Certified Money Bill ): Second and Subsequent Stages.

Question proposed: "That the Bill be now read a Second Time."

Minister for Industry and Commerce (Mr. Keating)

The principal purpose of the Bill is to increase the statutory limit of the amount of grants which may be made to Córas Tráchtála to enable that body to continue the work of promoting, assisting and developing Irish exports.

The Export Promotion Act, 1959, under which Córas Tráchtála were established, fixed at £1 million the total amount of grants which might be made to the board out of moneys provided by the Oireachtas. Subsequent Export Promotion Acts raised this limit. The latest one, in 1971, raised it to £15 million and the present Bill proposes to raise it to £25 million.

It is 15 years since the Export Promotion Act of 1959 set up Córas Tráchtála as a statutory board, taking over the functions of Córas Tráchtála Teoranta. During that period Córas Tráchtála have made a notable contribution to developments which have brought total exports from the level of £130 million in 1959 to almost £870 million in 1973.

There is little need for me to emphasise to this House that moneys made available to Córas Tráchtála are well spent. Senators are well aware of the vital importance of the board's task and of the efficiency of their operations. As industrial activity expanded in volume and range over the years Córas Tráchtála's operations were extended to provide exporters with the aids and services they needed to assist them in opening up new markets and consolidating their position in existing ones. The board have been quick to respond by the provision of new services as they saw exporters' needs for them developing, and they keep those services under constant surveillance to ensure that they cater for changing trends in marketing.

While exports to all our markets are showing sustained annual increases, those to the original six EEC member states show the greatest rate of increase —up by 75 per cent in value terms last year compared with 1972. In addition Irish exporters have begun to aim at new targets in Japan, the Middle East, Eastern Europe, Australia and South America. Ireland is also concerned in the movement towards free trade between the Community and other nations, and is progressively participating in a trading complex involving the EEC and more than 90 other countries. While all of these developments manifestly signify further opportunities for Irish exporters, they also create the need for an increasing degree of marketing intelligence and other facilities.

Córas Tráchtála are playing a very important role in this area. In addition to the many and varied services provided at home, an invaluable source of assistance to exporters is the overseas office network of Córas Tráchtála which is at their disposal. Córas Tráchtála now have 15 overseas offices—in Britain, USA, Canada, Australia, Lebanon, France, Austria, Germany, USSR, Belgium, Italy and Japan, with plans advanced for a further office in Copenhagen.

All of these developments create opportunities for exporters but they also call for an ever-increasing level of expenditure on the part of Córas Tráchtála, especially as they are subject to inflationary pressures at home and abroad. From its establishment in 1959 to 31st March of this year the aggregate of payments to the board by way of grant-in-aid amounted to £13,800,885, which left a balance of £1,199,115 out of the existing statutory limit of £15 million. This is less than the board's financial requirements up to the end of the current financial year, which amount to £1,755,000.

I am sure that Senators will agree that Córas Tráchtála must have adequate funds for their work, on which successful export promotion depends so much. I confidently recommend an increase of £10 million in the statutory limit on the grants which may be allocated to Córas Tráchtála.

Mr. Dolan

I welcome this Bill. I fully realise the important role that Córas Tráchtála play in the development of the national economy. The Minister is looking for £10 million extra to ensure that they will be able to carry on the work they have already in progress. Everybody must realise that, no matter how excellent or efficient our workers are, no matter what amount of expertise they possess, no matter how good our raw materials are, if we are unable to sell in a competitive market at a price that will compensate our workers and those promoting these industries it will be useless for us to continue in existence. It is true that many people could produce a variety of quality goods, could sell such products abroad but the price would probably not be up to our expectations and we would therefore, not make much of a success of it. It was for that reason that the Government in days gone by set up Córas Tráchtála, a body that have rendered a very good account of themselves. The Minister mentioned in his speech that they have premises in some 15 countries and that is certainly to be commended because there is no salesman or no method of selling as good as having people actually on the spot meeting customers, establishing personal contacts and so selling our manufactured goods at a good price. They are also probably able to make contacts with industrialists who might feed back into this country some of their expertise.

It is a great compliment to our workers and to our industrialists that we, as a young nation are able to produce goods of a quality to sell in competition with many of these old-established industrialised countries. It is a great tribute to those who established industries in this country and to the thinking behind that effort that we now have an industrial arm and we are able to benefit our workers and the economy as a whole by exporting such large quantities of manufactured goods in a competitive market.

There is something which I know is agitating the minds of many people in this country at present and it may, in one way or another, be connected with Córas Tráchtála and that is the price which obtains at present abroad for some of our agricultural produce. There has been a complete flop in price in the last 12 months for our cattle abroad. I know this is aggravating to the farmers: it is something that must be tackled immediately if the farmers are not to face complete ruin.

With regard to milk and butter and various other merchandise produced on the farms we have been doing reasonably well but so far as the animals themselves are concerned—and that is part of our economy—somebody must be at fault somewhere. I do not know whether one can lay the blame on Córas Tráchtála, on the Minister himself or on those who represent us in Brussels but it is definitely true that the cattle position at present is chaotic and that very much of the economy of this country is completely tied to it. If things continue as they are, with the scarcity of fuel and with low prices for produce there may be a drop in our milk supplies and consequently a drop in our processed foods and dried milk, milk powder and in butter. This would be a calamity. Thanks to Córas Tráchtála and their excellent salesmen abroad, we established a good name, not alone in England, where we had been the traditional suppliers of sausages, bacon and agricultural goods, but we also established in Europe markets for our butter and other dairy products. It would be a calamity if for any reason we lost these markets that were so hard to obtain.

Córas Tráchtála have done well over the years. I would ask them to interest themselves in this matter. We have built up an industrial arm in this country and although many of our industries for a long time have been only limping along, we know that a breakthrough was made in recent years and that they have improved their techniques through expertise and education, through the vocational schools and regional colleges of technology. We know that end of it is reasonably good but we know that the agricultural end of it is certainly not what it should be and agriculture being our main industry it is one that Córas Tráchtála will have to keep a very sharp eye on. They are asking here for £10 million.

Some mention has been made regarding free trade between EEC countries and the rest of the world. While we would all like a fair amount of facilities so far as free trade is concerned, and be able to get every article as cheaply as we possibly could, nevertheless we have to be rather sceptical regarding opening all the outlets and throwing ourselves completely into the mainstream of world competition. In the last 12 months we have the experience of what has happened inside the Common Market countries and I fear that even greater calamities would await us if we ventured out into the free-for-all market.

I welcome the operations of Córas Tráchtála in the 15 centres mentioned here. There is a great amount of goodwill in the United States, Canada and South America for our products. The benefits derived should be channelled to the producers of this country. A former Cathaoirleach of the Seanad—go ndéana Dia trócaire air—told me that in Canada on one occasion he saw on sale at 98 dollars an Aran sweater that had been knitted here. The cost of manufacture was £4 4s. There must have been a slip-up to have such an exorbitant profit on goods without any benefit to the country of manufacture.

A good deal can be accomplished by Córas Tráchtála by encouraging many of our people abroad to ask in the shops for products manufactured here. The large numbers of our people in Britain could do a great service to their country if they bought Irish products such as butter and alcohol. The same applies to America. Many of those who are so patriotic on Saint Patrick's Day during parades would do more for their country by taking home a bottle of "Paddy". This would boost our economy by helping the distillers and the farmers who grow the barley.

We have many products of which we can be proud. Those who have travelled abroad know that our shoes, clothing, whiskey and so on can compete with any article manufactured abroad. The Irish workers while they may not have the same opportunities adapt in a very short time when given the chance.

There are other articles produced here which should be publicised such as Beleek china, hand-knitted garments and other decorative articles of Irish design. When presenting souvenirs to tourists or when exporting them we should ensure that they are manufactured in this country. It is detrimental to Irish manufacture to have "Déanta sa tSeapáin" written on a supposedly Irish article. We should be more patriotic in our outlook and those going abroad could dress in Irish manufactured clothing. In other countries people ask for food manufactured in their country.

Various Governments have fought hard down the years to ensure that industries would be attracted to our country. We have just passed the Electricity (Supply) (Amendment) Bill, 1974 and have spoken of the help received from the ESB in spreading industries throughout the country. We have, as the Minister has stated, an excellent team of dedicated and efficient personnel abroad working to sell our exports. I, on behalf of my party, compliment Córas Tráchtála on the efforts they have made towards helping our economy abroad.

Professor Quinlan

I welcome the Bill and should like to pay a tribute to Córas Tráchtála for their excellent work. I suggest to the Minister that perhaps Cóas Tráchtála could be the vehicle to make the teachers in business, commerce and marketing in the regional technical colleges and in the universities conscious of the necessity for both quality and competitiveness in our products. This could be done if Córas Tráchtála had a policy of taking on staff from those institutions for tours of duty of say, six months or one year or of recruting them on a leave basis. They could serve six months or a year in Córas Tráchtála, work abroad, and this would ensure they got something of real benefit which they in turn would communicate to the pupils when they returned. It would be a two-way process and they could assist with home promotion.

Minister for Industry and Commerce (Mr. Keating)

I know, from the sense of élan and esprit which exists inside Córas Tráchtála that the welcome and good wishes which have been expressed here are important to them. We take for granted sometimes those who work well and hard. All who do a good job need some praise and in this case I am pleased they got it. It is merited.

I should like to comment briefly on some of the points raised. We are at one on the need to sell abroad as well as at home. I was interested in Senator Dolan's statement about the value of the large number of establishments— now 15 and soon to be 16 with the opening of the office in Copenhagen— which Córas Tráchtála operate around the world. In the recent difficulties regarding the supply of raw materials we had what one might call a lash-up temporary organisation made up of the Confederation of Irish Industry, the IDA and the CTT, both of which have an international network of offices to obtain for Irish industries scarce raw materials. This was put together rapidly on an ad hoc basis and it worked very well. It is another source of pride.

As an indication of my estimation of the value of the 15 offices to Irish exports I have calculated that during the period of 16 months in office I have personally visited eight of these offices. I have seen the personnel and I know the great spirit which exists and the sense of the quality of Irish goods. They do not have to sell world-wide on anything other than quality. This reflects in their attitude and vigour and the way in which they do their work. In the five years from 1969 to 1973, while our total exports increased to nearly £870 million, more than doubling, our industrial exports in that period increased from £102 million to £420 million. In that period of five years they trebled. This is a magnificent performance and it has brought us to the situation where industrial exports are very nearly half of our total exports.

While I agree with some of what Senator Dolan said in regard to agricultural produce, I ought, in fairness to Córas Tráchtála, point out that cattle and meat are the responsibility of Córas Beostoic agus Feola and that milk, butter and such items are the responsibility of Bord Bainne. Could I say in defence of all those organisations—the latter two are not responsible to me as Minister—that there is a desperate difficulty about cattle? In my view the difficulty stems from the structure of the Community in regard to beef. I say that with regret and not to open old controversies. I see that there have been signs of some wisdom in recent days, but I do not think it proper to attribute the desperate difficulties of people rearing, selling and exporting cattle and meat at present to a failure of the promotional organisations. They are working hard in desperately difficult circumstances not of their making.

While I agree with the need of the Irish people overseas to be as proud of their products as they are of their traditional songs and dances, the overseas Irish could express our culture in our food and drink to the great benefit of Irish exporters. While we have magnificent products in items such as shoes, drink and textiles, as Senator Dolan mentioned, we have also magnificent products in pharmaceuticals, in fine chemicals, in computer components, in hospital equipment and in certain sections of light engineering. We have this marvellous diversification into the very forefront of world technology. This is welcome to all of us.

In reply to Senator Quinlan, I have been academid myself and am now Government, but I would happily think that if we had a different type of system I might spend a period in either commerce or in the State service as a civil servant. We know of other countries where people move around. I think in a small country it is extremely important. If we only had proper pension arrangements people could trade around. In Sweden a fellow is a civil servant one year and he might be in management next year, in teaching the year after and he might be in politics the year after that. That is a good system. I entirely agree with the suggestion the Senator made. The students would gain and maybe Córas Tráchtála would gain. Anything of that nature of course presents technical difficulties, but it is an idea I will pass on with the comment I have made here: it is a sensible and practical suggestion and a very good one.

I would urge that the Seanad consent to give the Bill a Second Reading.

Question put and agreed to.

Agreed to take remaining Stages today.

Bill put through Committee, reported without recommendation, received for final consideration and ordered to be returned to the Dáil.

The Seanad adjourned at 10.15 p.m. until 10.30 a.m. on Wednesday, 10th July, 1974.