I move:—
That Dáil Eireann hereby approves of Control of Imports (Quota No. 35) Order, 1937, made on the 24th day of August, 1937, by the Executive Council under the Control of Imports Acts, 1934 and 1937.
This quota order, No. 35, relates to sparking plugs, that is to say, sparking plugs for motor engines. These plugs and their main component parts are at present being manufactured in the Saorstát by two firms, one located in Dublin and the other in Drogheda. The plugs which these firms are producing have been subjected to very searching tests by Government Departments and by firms engaged in the assembling of motor cars, and they have been found to be of good quality. They are being produced in sufficient quantities and sizes to meet the demands of this market. Originally we thought it would be sufficient, in order to encourage the manufacture of these articles, to protect the firms engaged therein by imposing a customs duty. A customs duty of ? per plug with a preferential rate of 1/-, was imposed in 1932. The preferential rate was subsequently abolished. In fact, we found by experience that an import duty had no effect at all upon the price of the plugs. The reason is obvious. The cost of the sparking plug has no relation to the cost of a motor car. Persons running motor cars will be influenced to purchase well-known and well-advertised brands irrespective of the price of them. In fact, it can be said that the cost of manufacturing the plug has little or no relation to the price at which it is sold.
There has been little relation between the sale price and the manufacturing cost. The manufacturers, in fixing the price, found it was better for them to have the goodwill of the customer, and consequently a very substantial margin of profit was allowed. It has now been thought well to restrict these imports by means of a quota order. That quota order was made and is now submitted for ratification to the Dáil. Under the quota order the quantities of sparking plugs permitted to be imported have been substantially reduced, but there will be no difficulty in procuring adequate supplies. Before the quota order was made a guarantee was secured from those engaged in the sale and manufacture of these plugs that their prices would not be altered following the passing of this motion. The number of persons engaged in the manufacture of sparking plugs last March was approximately eight.