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Dáil
‹ Ceisteanna—Questions Oral Answers - Car Imports.

Protecting car assembly employment

Summary

Taylor asked about measures to protect assembly jobs and whether restrictions could be imposed on competing imports. The Minister said he was constrained by domestic legislation and Protocol 7, and was unaware of a Commission inquiry into the Irish industry.

asked the Minister for Industry and Energy the steps being taken and which can be taken to protect existing employment in the car assembly industry.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

The special arrangements for the motor vehicle assembly industry, negotiated at the time of our accession to the EEC and covering the period up to the end of 1984, were intended to afford a long period for transition to free trade in motor vehicles. Under these arrangements it was envisaged that any firm ceasing assembly and which provided comparable employment for their assembly workers by diversifying into suitable alternative manufacturing industry would continue to enjoy facilities for the importation on fully built-up vehicles.

Unfortunately, changes in the structure of the motor industry world-wide and the economic recession in the conditions unfavourable to new investment, have created serious problems for firms wishing to cease assembly and establish new manufacturing projects.

Firms which can no longer continue assembly and whose consequential arrangements do not fully meet the diversification requirements may be granted facilities for built-up vehicles but on a restricted basis only. The extent of such facilities will depend upon the proposed alternative arrangements. In such cases the primary aim is to preserve as many jobs as possible.

Every possible effort will continue to be made between now and the end of 1984 to induce firms either to continue assembly or, failing that, to provide alternative employment for their assembly workers. It is, however, only realistic to recognise that the proximity of the date for termination of the special arrangements, the depressed state of the motor vehicle market world-wide, and the extremely poor international climate for new investment, are serious constraints on the industry.

Comment on this

Could I ask the Minister if, for the purpose of protecting employment in this diminishing industry, he will consider imposing unilateral restrictions on competitive imports as is done by so many of the other EEC countries in this and other fields.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

The Deputy will be aware that I am constrained with regard to industry by Acts of the Oireachtas and by Protocol 7 to the Treaty of Accession. In those circumstances, I can only operate within the confines of Acts of the Oireachtas and Protocol 7.

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

A final supplementary, please, Deputy. We have spent nearly a quarter of an hour on these two questions and they might be more suitable for discussion under Standing Order No. 35.

Comment on this

It is a very important matter nonetheless, a Cheann Comhairle. Is the Minister aware that Common Market officials are at present investigating no fewer than 500 cases of alleged breaches of Protocol 7 and whether he would consider, in those circumstances, unilateral action on our part in the case of this hard hit industry?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

I am not aware of any inquiry being made by the Commission with regard to the Irish Department of Industry and Energy and the motor vehicle assembly industry.

Comment on this