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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Irish Produced Goods.

Promoting Irish goods and import substitution

Summary

The Minister said EU rules prevent government-run Buy Irish campaigns and discriminatory public procurement, though private promotion and lawful help for Irish tenderers remain possible. He cited roughly £250 million in food imports, about half potentially substitutable, and said supermarket discussions and agency data work could support domestic suppliers.

asked the Minister for Industry, Trade, Commerce and Tourism the steps he proposes to take to entice the consumer to purchase more home produced goods; and the estimated total value of goods imported that could be produced in Ireland and the number of jobs that this would create.

Comment on this
John Bruton Mr. J. Bruton Fine Gael

The European Court of Justice, in a judgment made in November 1982, found that the organisation by the Government of promotional campaigns of the "Buy Irish" kind on the home market was inconsistent with obligations under the Treaty of Rome. I understand that the Treaty of Rome does not prevent such schemes being operated by private individuals or groups and that a number of private groups are in fact currently operating such schemes here. I note, for example, that the Guaranteed Irish Scheme which formerly operated under the aegis of the Irish Goods Council, was recently relaunched by private interests.

I am convinced that the maintenance of international competitiveness under the headings of price, quality and delivery performance, together with the development and availability of new products, is essential if Irish firms are to compete successfully against imports on the domestic market. The extensive services and expertise of the State agencies are available to assist Irish industry in this regard.

I understand that there are no official statistics which would enable an accurate answer to be given to the second part of the Deputy's question.

Comment on this

Is the Minister in a position, from the facts available to him, to give the House an indication of the estimated import penetration of the home market in the various categories of industry?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

They do not seem to have this information available in the form the Deputy wants it. I am aware that certain estimates have been made in regard to the food sector.

Comment on this

Has the Minister those estimates?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

Unfortunately, I do not have them with me. The latest figure is that there are approximately £250 million of food imports altogether. I believe that somewhere in the region of half of those would be substitutable. I am speaking from memory. I do not have the type of general statistical information the Deputy seeks. However, the various agencies are working on the production of data banks in respect of individual sectors where imports, particularly by industry, could be produced by Irish industry for other Irish industries. They are being identified on a data bank in the IIRS with the co-operation of the IDA. That type of practical information is available on a data bank. I would refer people to the IIRS. On global statistics, there seems to be a deficiency in this regard.

Comment on this

The Minister obviously has taken some interest in this as far as food imports are concerned. I agree with what he said particularly when one considers that fruit and vegetable imports between 1977 and 1982 rose from £52.7 million to £149 million while dairy imports in the same period rose from £10.7 million to £31.2 million. Will the Minister agree that it is time the Government embarked on an import substitution programme, similar to one that was introduced by the last administration? Will the Minister indicate his willingness to continue his efforts in the hope that he will be able to do something about the problem?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

The Deputy will appreciate that under the relevant court judgment dealt with in my reply there is not the legal capacity for the Government to get involved in financing import substitution in the way the Deputy may have in mind.

Comment on this

Will the Minister support the confederation one?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

The whole purpose of my discussions with the supermarkets is to encourage them to use their financial power to help domestic suppliers develop.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

If the Minister and the Deputy wish to have a debate on this they will have to find another opportunity.

Comment on this

This represents about 50,000 possible jobs here. Does the Minister agree with that figure?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

It is very large, I agree.

Comment on this

It would solve a lot of our problems.

Comment on this

Is the Minister aware of the "Buy British" campaign and that in Government purchasing they have been encouraged to buy British? Is the Minister aware they they have been requested to make a monthly report of their purchases to a central co-ordinating agency? Will the Minister agree that there is great scope within the Irish State purchasing situation for a similar practice? Will the Minister agree that this can be set up in such a way that it does not infringe EEC regulations?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

In areas such as telecommunications and defence countries have exemption from the normal requirements in regard to the non-discriminatory purchase of goods. It is contrary to EEC rules to enter into discriminatory practices in regard to public procurement. Industries located in Ireland have suffered considerably in their export efforts as a result of contravention of this requirement by certain member governments, and I have complained about this matter. I went specially to Brussels to meet the Commissioners Narjes and Andriessan to complain about this question because of the damage it was doing to industrial development in this country. However, I do not think the best way to get rid of it is to start practising it ourselves.

Comment on this

Would the Minister accept that a vast amount of State purchases in both the semi-State and public sectors have gone abroad that could easily have been purchased at home if serious efforts were made and if identification of the requirements was given in time to Irish companies so that they could have geared up for it? There is room for improvement in that area without infringing any regulations.

Comment on this
John Bruton Mr. J. Bruton Fine Gael

Anything that one can do without infringing regulations we should do to make available the necessary information to Irish tenderers to put them in a position to compete and, through normal industrial development activity, help them to be in a position to produce the necessary goods.

Comment on this

Has the Minister a watchdog in his Department watching this?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I am very much aware of this problem, as was Deputy Reynolds when he was Minister. We are watching carefully what we can do within the law to encourage the development of Irish industry in the public procurement area. However, we are interested in exporting Irish goods to other governments as well as simply selling them to our own. Because we are a small country, 50 per cent of what we produce is exported and we cannot confine Irish industry within our boundaries.

Comment on this

What about EEC regulations?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I am prepared to investigate the allegations the Deputy has made about the "Buy British" campaign. If those are contrary to EEC rules certainly I will complain about them to the Commission.

Comment on this

Good man.

Comment on this