asked the Minister for Industry and Commerce if he will state the reasons for the big discrepancy between the prices of motor cars in this country and Great Britain, which operates to the detriment of the Irish buyer; whether he received an application from the manufacturers to increase the prices of new models by a substantial figure, and, if so, what action he proposes to take in the matter.
Ceisteanna—Questions. Oral Answers. - Motor Car Prices.
My information is that the published retail prices of cars in this country are lower than the prices payable by purchasers in Britain for the same models.
In making any such price comparison, it must not be overlooked that whilst the British prices include purchase tax the Irish prices include separate customs duties on the chassis and body, plus the special import levy imposed in March, 1956, as well as freight costs on the aggregates for assembly.
There is no statutory control of manufacturers' prices for new models of motor cars and the latter part of this question, therefore, does not arise.
Is the Minister aware that, notwithstanding the fact that he has taken the new levy into consideration, before that levy was ever imposed and not taking into account the purchase tax in Britain the cost of motor cars in this country was some 25 per cent. higher than in Britain? Surely there must be some reason other than the one the Minister has given for such a state of affairs? Would the Minister have the matter inquired into?
The facts are clear enough. The position is that the difference between the price of Irish-assembled cars and the British basic prices for cars is attributable to the custom duties which we charge on parts and to the cost of freight. It is a fact that the cost of the Irish car vis-á-vis the British car is higher, but the whole situation is coloured by the fact that the British charge a purchase tax and we levy customs duty on the parts. In addition, freight charges have to be met.
Further arising out of the Minister's reply, the import duty only amounts to some £30 in the cost of the dearer cars. Notwithstanding what the Minister states about the imposition of duties, there is no comparison between the price of, for instance, a Ford car ex. Cork and a Ford car ex. Dagenham in Britain. The price is 20 per cent. higher in this country and the duty does not account for that.
The parts which come in here are dutiable and duty is charged on the chassis. In addition, freight charges have to be paid on the aggregates for assembly. The fact of the matter is that, prior to 1948, there was a very substantial difference between the basic price of British cars and the basic price of Irish cars. In 1948 agreement was reached with the assemblers of British cars by which they undertook that the retail prices here would not exceed by more than 32½ per cent. the basic British retail prices, excluding purchase tax.