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Dáil Éireann debate -
Wednesday, 4 Nov 1964

Vol. 212 No. 2

Ceisteanna—Questions. Oral Answers. - Motor Vehicle Assembly Industry.

6.

asked the Minister for Industry and Commerce whether any adaptation council has been set up for the motor vehicle assembly industry; whether there is any likelihood of the present quota protection for this industry being altered to tariff protection; and whether any progress has been made in plans for adaptation of the firms in this industry to meet any degree of greater competition.

The CIO did not recommend the setting up of an Adaptation Council for the motor assembly industry, and no Council has been set up. A special Industry Committee was, however, established with the object, inter alia, of facilitating discussion between the industry and my Department in relation to problems which might arise out of the approach to free trade.

In the special circumstances of this industry, it has been informed that the quota on motor vehicles would remain in existence unless and until some international obligation required that it be removed and replaced by a duty.

In view of the possibility that the industry as a whole would have difficulty in surviving in free trade conditions, I considered that the future of those involved in the industry might best be protected by the conversion of assembly factories to other manufacturing purposes providing equivalent employment, and I offered the industry that I would provide facilities for the importation of cars in an assembled condition to any assembler providing equivalent employment in this way. I have recently reached agreement in principle with one assembly firm which has undertaken a new line of manufacture.

Have many of those involved availed of the Minister's offer?

There is only one in question at the moment.

Only one?

Would the Minister be able to say approximately how many firms are involved?

I can give only very rough figures at this stage. Shall I say ten to 15 assembly firms?

One in ten to 15 is not very encouraging.

On the other hand, a lot of firms are making plans to expand their industries at the present time, which gives an air of confidence as far as the proprietors are concerend.

It is not too encouraging, anyhow.

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