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Dáil Éireann debate -
Wednesday, 28 Nov 1951

Vol. 127 No. 10

Ceisteanna—Questions. Oral Answers. - Price of Cars.

asked the Minister for Industry and Commerce whether he is aware that it has been stated by motor dealers that British-made motor cars could be sold in this country at the present English price plus transport costs were it not for an Order requiring these car dealers to have the cars assembled here, and if he will state whether he has satisfied himself that the difference between the present Irish price and that charged in England (excluding purchase tax) is represented by the amount paid in wages to the Irish workmen engaged on assembling; and, if so, if he will explain how cars are sold so cheaply in England where the workmen engaged in assembly receive wages just as high, if not higher, than those paid here.

I have seen many statements by various persons on this matter. There are many factors besides wages which contribute to the differential between the basic British prices and the Irish prices for motor cars. These factors include (1) revenue duty payable on the chassis and body on importation, which averages 15 per cent. approximately, (2) freight on parts for assembly from British factories to this country. (3) the utilisation of parts and accessories manufactured in this country, the economic prices of which exceed the allowance made in respect of them by the British manufacturers, and (4) the higher unit cost arising from the relatively lower volume of output.

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