asked the Minister for Industry and Energy his Department's policy on the granting of licences to import built-up motor vehicles.

The Motor Vehicles (Registration of Importers) Act, 1968, which governs the commerical importation of fully built motor vehicles, provides the statutory framework for the special arrangements, known as the scheme, for the Irish motor assembly industry. These arrangements were agreed initially in 1967 between the British motor manufacturers, their Irish assemblers and the then Minister for Industry and Commerce and subsequently were agreed, with certain modifications, modified by Protocol 7 annexed to Ireland's Treaty of Accession to the European Communities.

The main feature of the scheme is the channeling of fully built-up motor vehicles through registered importers. A person may qualify for registration either on the basis of assembly or under global quota for vehicles of Community origin.

There are three categories of registered persons:—

First, the registered importers/assemblers of Community vehicles who maintain their 1965 level of assembly and employment. These are free to import fully built-up vehicles, for which they are registered, without restriction as to quantity.

Secondly, any person who, subsequent to the commencement of the 1968 Motor Vehicles Act, commences assembly of vehicles from new aggregates of parts which qualify as completely knocked down, will be eligible for registration for the importation of fully built-up vehicles provided his assembly reaches the required level and for so long as assembly is maintained at that level. The required level of assembly is as follows:

(i) 5 per cent of the total market then current for private cars, where the assembly of private cars only is involved, or

(ii) 10 per cent of the total market then current for commercial vehicles, where the assembly of commercial vehicles only is involved, or

(iii) 5 per cent of the total market then current for private cars and commercial vehicles, where the assembly of both private cars and commercial vehicles is involved.

In the case of a person who commences the assembly of vehicles of non-Community origin, such as Japanese vehicles, and reaches the required level for registration, then imports of fully built up vehicles will be restricted on a ratio basis. The ratio applied is that existing between the total number of vehicles of Community origin imported fully built-up and the number of vehicles of Community origin assembled in Ireland.

Thirdly, in accordance with the global quota arrangements under Article 3 of Protocol 7 any person appointed sole importer in Ireland for a make of vehicle originating in the Community, but which is not already receiving special treatment under the scheme, may apply for registration for the importation of such vehicles in fully built-up condition. The global quota is fixed annually as a percentage of the number of vehicles assembled in Ireland during the previous year. The percentage was fixed at 3 in 1973 and increases by one percentage point each year to reach 14 per cent in 1984. The quota for 1983 is 13 per cent of the total number of motor vehicles assembled in 1982.

The global quota is allocated between the following categories of vehicles: viz., private cars — 85 per cent of the quota, and commercial vehicles — 15 per cent. The quota for each class is further subdivided into two categories — cars not exceeding 1500cc get 75 per cent of the car quota and 25 per cent goes to cars exceeding 1500cc. Similarly, the quota for commercials is divided as to 75 per cent to commercial vehicles not exceeding 3.5 tons tare weight and 25 per cent to those exceeding 3.5 tons.

In addition to the importation of fully built-up vehicles by the categories of registered importers I have already mentioned, section 6(1) of the 1968 Motor Vehicles Act empowers the Minister to authorise a registered person to import a motor vehicle of a make or type not entered in the register.

The Act also provides for the importation by non-registered persons of fully built-up motor vehicles not intended for sale where it would not be appropriate to authorise the importation by a registered importer. These importations are mainly confined to cases involving permanent transfer of residence from abroad which do not fully meet the requirements for duty-free importation under the Transfer of Residence Regulations administered by the Revenue Commissioners.

Could I ask the Minister of State whether the percentages he has read out are obligations imposed on him under the Treaty, or whether the Department have any discretion in the granting of licences for the importation of fully built-up vehicles. In so far as the Minister has discretion, can he assure the House that he will exercise that discretion with the objective of protecting such existing employment as remains in the car assembly industry?

I think the Deputy will accept that I have given a very comprehensive reply on the complicated situation in the motor assembly industry.

Comprehensive waffle.

As I said, there are three basic categories: first, registered importers/assemblers of Community vehicles who maintain their 1965 level of assembly and employment; secondly, any person who, subsequent to the commencement of the 1968 Motor Vehicles Act, commences assembly of vehicles from new aggregates of parts; thirdly, those who come under the global quota arrangement. Each category is dealt with differently under the Act. The Deputy can be assured that my Department are very much aware of the need to conserve employment in the industry, and that all applications which come before us for the importation of fully built-up units are looked at very closely.

What I want to find out is whether the Minister has discretion in the granting of these licences or whether he is bound entirely by the regulations he read out. He has not answered the question as to whether or not he has discretion. If he has a discretion, will he use it at all times with the objective of protecting employment?

That is a very important question. It is basic.

I have answered the Deputy as fairly as possible. I have no discretion where the assembler is acting within the scheme. Where I have discretion I can assure the Deputy that each application is scrutinised very closely with the objective of maintaining employment in the industry.

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