Joe O'Toole (Independent)

I welcome the Minister of State and the legislation which I consider to be progressive, forward thinking and extraordinarily necessary. I take issue with some of the views expressed to the effect that the legislation might present a difficulty for producers or industry. People, especially politicians, should recognise that the chemicals industry employs almost 30,000 people. The Minister and Senator Carty realise the importance of the industry to their county.

The reason the chemicals industry continues to grow in this country and is responsible for approximately 10% of gross domestic product is there is confidence therein because of regulation. With respect to my friend and colleague, Senator Quinn, he should note that the running of the industry in Panama is such that there would not be the same market for its products outside the country as in it. This is a very important point to remember. Far from coming in the way of entrepreneurship, properly organised regulation enhances confidence in the industry, makes entrepreneurship more effective and the industry more acceptable. It becomes more acceptable on many levels, which points to the importance of the REACH regulation. Regulation is important to those living in the area of production. They want to know that all of the work is being done to the highest level of safety in laboratory conditions.

I am sure the Minister of State and Senator Carty know exactly what goes on in the chemicals industry. Every chemicals industry I know of in Ireland has its own reservoir and, where it is making medicines, it uses its own filtered, treated and distilled water in laboratory conditions. No conditions are accepted other than laboratory conditions. That is the effect of regulation. Were it not for regulation, we would not be able to sell our products. Not only would we not be able to sell them in Irish pharmacies and veterinary suppliers and to the Irish food industry, we would not be able to sell them in any other country.

Even as we are debating this Bill, there are those in the chemical industry who are extremely conscious of the fact their premises could be visited by an official from the Department as early as tomorrow or that they could be contacted by telephone and informed that an audit of their companies will be carried out on Tuesday next or whenever. Those to whom I refer are also aware that this could lead to their factories being closed, all staff being laid off and production brought to a halt as a result of the proper procedures not being observed. That is the pressure which exists on both sides. However, the procedures that apply are in place to ensure that everyone, including end-users and — if another industry is involved — those in the middle of the chain, is protected. They also ensure protection for Irish products which are sold abroad. The audit regulation, which incorporates the REACH directive and other directives, is acceptable throughout the global marketplace.

I become extremely bothered when I am obliged to listen to a debate in which people state that legislation such as that which we are discussing is something of a nuisance. Such individuals inquire as to whether this type of legislation gets in the way and whether a regulatory impact assessment is really required. I suspect the reason there is no such assessment is because provisions in the Bill go far beyond anything that would normally be required in the context of a regulatory impact assessment. I read the previous Government's White Paper on this matter, which I welcomed at the time and which I still welcome, some five, six or seven years ago. People should recognise how the chemical industry functions. They should also recognise the risks, gains and requirements involved. They must be aware that establishing operations in this industry is not similar to setting up a corner shop. Huge demands are placed on those involved.

Some of those in the industry and certain commentators and consultants have stated that the problem with the EU's REACH directive is that it will add between 4% to 15% to the cost of production. Let us place that matter to one side and state that it is a pity. However, if one considers the other aspect, one realises that with the directive those in the industry might not be in a position to sell their products. One difficulty with a product from this country could cast a doubt over 10% of our gross domestic product. That is the scale of what we are discussing. It would be a pity if politicians, above all others, did not realise that. Most people in this House do not see the connection between that and employment, unemployment, marketing, exports and economic growth.

Our focus must be on ensuring we get the type of legislation that is before us right. I compliment the Minister of State and the Department on drawing up the Chemicals (Amendment) Bill 2010. It is a complex and awkward measure. The Minister of State and the Department received little encouragement from those in the industry who should have been providing leadership in respect of this matter. Industry leaders and commentators should always be the first to consider issues of this sort.

It is worth remembering that we have been listening to people refer to regulation stifling development for ten years. In the context of the banks, it is this type of argument that got us into the position in which we now find ourselves. What we need is to develop regulation that is correct and that is properly weighted and costed. Such regulation should be costed not just in financial but also economic terms. Do people realise the importance of the chemical industry to the country? We discovered at the weekend that if people want to take a shot at us, they will do so if it suits them. If the Germans are the major holders of Irish bonds and if they want money to be obtained in order that they can be paid off quickly, surely there is a conflict of interest. The position is the same in respect of the matter under discussion. If, despite the fact that their are our European friends and colleagues, those in the German chemical industry were of the view that they could put one over on us by stating that their regulation is more transparent, effective and acceptable, they would do so and we would then be in trouble.

Ireland must be a global leader in respect of this issue. That brings me to the point that we are above suspicion in that regard. Members might not believe it from what I have said to date but I am no great supporter of the chemical industry. All I have done is provide a hard, practical view on how I, as a public representative, a politician, a trade unionist and someone who is interested in protecting employment, perceive this matter. I wish we could live in a world where certain chemicals did not exist but it is not possible to do so. In the context of issues such as health, however, chemicals allow people to live longer, more safely and free of certain illnesses. The agriculture industry has also been assisted — in many and ever-changing ways — by the use of particular chemicals. The pesticide DDT is no longer used in agriculture but a replacement for this product have been developed. The fact that the agriculture industry is well regulated is the reason DDT is no longer in use. The product which replaced DDT is not a carcinogenic and is, therefore, safe to use. We must welcome developments of this nature.

I welcome the provisions in the Bill which relate to the biodegradability of detergents. However, I would go the whole hog in respect of this matter. Detergents can be the cause of major difficulties. They give rise to greater problems than any other products. We tend to become worked up when we discuss sewage outlets and the damage they can cause. When I hear people discuss this matter, I often wonder whether they were ever obliged to use rods to unblock pipes. I am of the view that unblocking a sewage outlet is far less likely to encourage one to vomit than trying to unblock a pipe through which the residue from detergents flows. The waste which emerges from the latter kind of pipe is an absolute pollutant.

Of all the towns in Ireland, that in which the Minister of State lives is dependent on a clean river. The salmon fishing industry which operates out of that town is dependent on that river being clean. I have stated on many occasions that retail outlets located within five miles of the Shannon or any other decent river should only be allowed to sell domestic detergents such as washing up liquid, bathroom detergents, washing powder etc. that are biodegradable. There should be no detergents on sale throughout the entire country other than those which are biodegradable. I acknowledge that such detergents are marginally more expensive to buy. If, however, people used only products of the kind to which I refer, it would do a great deal to improve water purity etc.

I will be supporting the legislation. I accept that I may not have discussed the detail of the Bill to the degree to which I should have done. My main point in respect of it is that this industry is of crucial importance to Ireland. Colleagues in this and the Lower House have failed to get that message. The Bill is not merely a mechanism for the transposition of an EU regulation, it relates to protecting jobs, developing exports and underpinning the 10% of GDP for which the chemical industry is directly responsible. The latter is what is at stake here and that is why the legislation is important. People should not wonder whether we are wasting our time dealing with matters of this nature. There is a need to introduce even more legislation such as that before the House.