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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Motor Assembly Industry.

Motor assembly industry policy

Summary

Mac Giolla asks whether firms ending vehicle assembly must provide alternative economic arrangements to retain import facilities, and whether the policy has protected employment at Ford and Datsun. Collins confirms the policy, says import authorisations were restricted where firms had not fully met requirements, and notes Datsun proposals remain under consideration; he gives no confirmation that jobs have been maintained.

asked the Minister for Industry, Trade, Commerce and Tourism if his statement to the Dáil on 7 July 1983 that firms currently assembling vehicles who cease operations before the end of 1984 will be required to provide alternatives to assembly in order to continue to qualify for facilities to import fully built up vehicles, still represents Government policy on the motor assembly industry.

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

The answer to the Deputy's question is that my statement to which he refers still represents Government policy on the motor assembly industry.

On that occasion I mentioned one element that the alternative arrangements to assembly might involve, namely purchases from Irish sources. Such alternative "packages" might also involve the establishment of an alternative manufacturing project, direct or indirect investment in manufacturing, or the training or retraining of workers. The extent of the import facilities I would be prepared to afford would be determined by the quality of the economic package put forward having regard to the particular circumstances of the case in question.

Comment on this

I am glad to hear that the policy as in July 1983 is still Government policy in May 1984. Could the Minister indicate whether he is satisfied that Government policy has been maintained in the case of firms which have ceased operation since July 1983? Have they maintained the Government policy of providing an alternative to assembly before qualifying for import facilities for their own fully built up vehicles?

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

In general, while they have not fully complied with my Department's requirements, there was a restriction put on their import authorisation, that is, they would not have been allowed free importation of cars.

Comment on this

I would like to repeat what the Minister said in July 1983. He said that these alternative arrangements could involve additional purchases from Irish sources which would possibly create additional employment in this sector or, at least, maintain jobs at the present level. Can the Minister say if these jobs have been maintained? Is it not a fact that jobs have been lost and no new jobs have been created in their place, in the case of Fords and in Datsun in particular?

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

In relation to Fords I have not been advised of their intention with regard to ceasing production at this point. There is a question regarding Fords on the Order Paper and the Minister will be answering that. In relation to Datsun——

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

Would the Minister please deal with Question No. 6.

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

I understand with regard to Datsun that proposals are presently before the Minister for agreement. Agreement has not yet been reached with Datsun.

Comment on this

I have not got any confirmation from the Minister that the Government policy has been maintained although he has agreed that it is Government policy. Has the Minister still got proposals to continue the maintenance of employment up to the end of 1984 as he said in 1983 in the case of Datsun and Fords? I am sure the Minister is aware that the agreement in the case of Datsun is closing down and not maintaining jobs.

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

The Deputy will be aware that the special scheme ends at the end of this year. As I said I am not aware of the arrangements in Fords and as I also said in regard to Datsun there are presently proposals being considered in my Department.

Comment on this

The Minister knows they are closed down and the jobs are gone.

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

Yes, but I said there are proposals in my Department which could possibly fit into the scheme.

Comment on this