asked the Minister for Industry and Commerce the consideration, if any, given to the idea of making Lough Swilly, County Donegal a duty-free port; and if he will make a statement on the matter.

While no specific consideration has been given to the question of making Lough Swilly a duty-free port, the general question of duty-free zones has been considered in the context of industrial development policy. However, our membership of the EEC has reduced substantially the validity of the duty-free zone concept and I am satisfied that from the industrial development point of view we would have nothing to gain from the establishment of a duty-free port at Lough Swilly.

From what the Parliamentary Secretary has said it would appear that no consideration has been given to this matter. I ask him to bring to the notice of the Minister the fact that this is one of the finest natural harbours in Europe, if not in the world, a harbour not requiring any dredging or other work of an on-going cost nature and that in the context not only of the EEC but of international shipping, the duty-free element be considered rather than having merely an agreement between the countries of the community.

I understand that in regard to materials from third countries for export to member states and to EFTA, the common customs duties must be levied irrespective of whether the industries concerned are located in a duty-free zone. Materials imported from third countries for processing and re-export to third countries may be imported free of duty under bond but there is a detailed Community procedure—directive 69/73— which involves custom supervision at all stages irrespective of whether the industry is located in a duty-free zone. Therefore, it seems that the concept of a duty-free zone has not the validity it had prior to our membership of the EEC.

Will the Parliamentary Secretary agree to have the matter examined fully and will he keep in mind that the transatlantic, international, trans-shipping value of this harbour is a factor that must be kept in mind at all stages and that the matter be not related only to agreements between the Nine?

Each of the facts I mentioned in my reply would apply to a considerable degree to what the Deputy has said but I shall have the matter examined further.

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