Committee Reports::Report - Appropriation Accounts 1935 - 1936::09 December, 1937::Appendix

APPENDIX XX.

PAYMENT OF SUBSIDY AND BOUNTY ON EXPORTS OF MACADAM AND GRAVEL.

The circumstances which led the Minister for Industry and Commerce to seek sanction from the Minister for Finance for the payment of a subsidy of 6d. per ton on exports of macadam and gravel in addition to the payment of a bounty equivalent to the British duty were as follows:—


An application was received from the Granite Company, whose quarry is situated in a remote part of the Saorstát, for the payment of a subsidy on its exports on the ground that if the subsidy were not paid the quarry would have to close down.


The Company’s products have been within the scope of the bounty arrangements of this Department since the inception of the scheme.


The grounds which weighed with the Minister in deciding to recommend the application for a subsidy to the Minister for Finance for his sanction were:—


(a) the probability of the quarry being closed and its workers disemployed;


(b) the inability of the Company to develop a home market: the Company’s products, although superior to those of other quarries, were dearer and practically no local demand existed;


(c) the location of the quarry also militated against the development of a home market; and


(d) the amount of employment being afforded or likely to be afforded in relation to the subsidy requested, as well as the corresponding relation between the cost of such a subsidy and employment on any relief works which might have to be started in the area.


It may be added that the payment of the subsidy appears not only to have ensured the preservation of the industry, but to have resulted in an actual increase in the amount of employment given.


(Signed) JOHN LEYDON.


Department of Industry and Commerce,


Dublin.


30th December, 1937.