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Dáil
‹ Ceisteanna—Questions . Oral Answers . - Industrial Employment .

Irish response to British employment subsidies

Summary

Kelly questioned claims about the cost and reach of Britain’s latest subsidy and argued Ireland had offered no further response. Desmond questioned whether the Irish scheme had Commission approval and could achieve its intended impact; Fitzgerald said it would operate from early April, with retrospective payments in July, and that only details remained to be settled.

: May I leave that topic and move to the substance of the Minister's reply? The question related to response to the most recent British measure. Is the Minister aware that six weeks after the budget statement here the Employment Secretary in London announced a new scheme— that was on March 15—of industrial employment subsidies? In that connection is the Minister aware that there is a difference between what the British Minister and his Department say will be the cost of that scheme and what Deputy Burke, Minister of State at the Department of Industry, Commerce and Energy, said here a month ago?

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Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

: Some weeks ago the Minister of State, replying to Deputy Kelly, pointed out the position regarding the latest proposed change in the British subsidy scheme.

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: Obviously, the Minister has a copy of that reply before him but may I remind him that on the occasion in question the Minister of State told the House that in response to representations made by the Irish Government, the British scheme had shrunk from £306 million to £190 million? Will the Minister accept from me that I have heard personally from the Press Officer of the British Department, whom I telephoned, that that information was not correct and that the scheme will still cost £300 million and also that the number of workers supported by the scheme in Britain and at the expense of Irish jobs will increase from 328,000 to 400,000?

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: Will the Minister accept that at this stage our proposed scheme is in very serious difficulty with the Commission in view of the fact that the Minister announced in the budget that the scheme would apply to certain industries, that now it is to apply to eligible firms, that currently the scheme is with the Commission, that it is languishing with them and that there is no indication that in any way it will have the kind of impact it was designed originally to have?

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Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

: It is extremely mischievous of Deputy Desmond to make that suggestion. What he alleges is totally without foundation.

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: It is the truth. The scheme is in considerable difficulty at Commission level.

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Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

: As I said in reply to the question the scheme will have effect from 3 April 1978 and the first payments, which will be retrospective, will be made in July. In relation to the question put by Deputy Kelly I cannot be held responsible for the comments of any press officer from anywhere other than the one from my Department and certainly not from a British officer. The new schemes as announced have serious restrictions compared with the previous schemes, those that existed during the Deputy's term in Government when no temporary employment subsidy was given here to these industries.

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: Will the Minister accept that a new British scheme was announced on 15 March, that it was to operate from 1 May and that no additional Irish response has been promised in order to counteract the effect of that scheme on Irish employers?

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Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

: Again, I should tell the Deputy that the curtailment of the British scheme resulted from pressure from the present holder of the office of Minister for Industry, Commerce and Energy. Our scheme was announced in the budget. It will operate from a date in early April and will be paid retrospectively in July.

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: How long——

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Joseph Brennan An Ceann Comhairle Fianna Fáil

: We cannot spend all day on this question.

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: Perhaps I will be allowed a final supplementary.

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Joseph Brennan An Ceann Comhairle Fianna Fáil

: Yes, but the Deputy must be brief.

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: For how long has the Irish Government's proposal been with the Commission and have the Commission sanctioned the Irish scheme yet?

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Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

: I have informed the Deputy that there are no major problems with regard to the temporary employment subsidy as announced. Certain details have yet to be finalised but I assure the Deputy that what is involved is merely a matter of detail.

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: Will the Minister accept that no further Irish response has been forthcoming since the latest British scheme was announced?

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Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

: That is repetition.

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: The answer, as usual, is a duck egg.

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