asked the Minister for Industry and Commerce the steps, if any, being taken to prepare Irish industry for the implementation of the EEC directive on product liability due to come into operation in July 1988.

38.

asked the Minister for Industry and Commerce the steps, if any, he proposes to take to implement the EEC Product Liability Directive; and if he will allow a state of the art defence.

I propose to take Questions Nos. 13 and 38 together.

To ensure that there is a full awareness of the effects of the EEC Directive on Product Liability, which must be implemented by member states by the end of July 1988, a discussion and explanatory document was issued by my Department last August setting out the provisions and implications of the directive. In addition, wide coverage was given to it in the press and an announcement was made in the daily newspapers seeking views from interested parties.

Furthermore, the Confederation of Irish Industry, in conjunction with the Quality Research Unit of Galway University, are organising a series of one day seminars to be held at various venues around the country starting the end of this month.

A good response was received to the discussion document and the views expressed will be taken into account in reaching decisions which will be taken shortly regarding the directive, including the question of allowing a state of the art defence. A decision will also be taken shortly regarding the manner of implementation of the directive.

Will the Minister accept that implementation of this directive will mean increased claims against producers with a consequent increase in insurance premia and possible bankruptcies? Will he further accept that the only effective defence against such claims is preventive action based on some quality management practices? I put down this question before the end of the last session. Will the Minister accept that this is too little, too late and that what we need is a national quality drive to prepare industry for the implementation of this directive which, of course, will have benefits in other areas also.

I do not accept what the Deputy has said in that this is too little, too late. In the first instance, I am not very long here and, secondly, industry is only too well aware of the serious implications of the introduction of this directive. The product liability directive will impose a no-fault liability on the producer of a defective product. Let me also point out to the House, that the directive gives a number of options to member states in relation to the development risk defence and the financial limits to be set on claims. Primary products which have not undergone initial processing may also be included or excluded from liability. Therefore, it is not fair to suggest that industry is not aware of the implications of the implementation of this directive. Of course, it is. I am continually receiving submissions and in the next week or so I will be attending a seminar at the CII. When I have seen all the submissions I will make my decision on the best way I can protect Irish industry.

Would the Minister accept that this would need to be done very quickly and that genuinely in the interests of this country and of our producers a major national quality drive is needed right up to the date of implementation of the directive in August 1988?

Of course I am concerned about the need for quality and excellence in products. I would draw to the attention of the House and of the Deputy in particular that there has been great work done by the Irish Quality Control Association over quite a number of years, and indeed by the various State agencies, in hammering home the message of quality to Irish manufacturers. Indeed the day is not far off when the success or otherwise of their enterprises will depend on their quality, it being a major factor of all the others that comprise excellence. Indeed that has a bearing on the implications of this quality product directive.

Since it is now 3.30 p.m. I propose to deal with questions nominated for priority.