asked the Minister for Industry and Commerce what alternative type of industry and employment he contemplates to replace the production and employment in the motor vehicle and coachbuilding industries unfavourably affected by the proposed free trade agreement with Britain.
Ceisteanna—Questions. Oral Answers. - Motor Assembly Industry.
35.
When the possibility that Ireland might join the European Economic Community was under consideration my predecessor assured motor assemblers that he would give every possible assistance to any proposals they might formulate for providing alternative employment for workers rendered redundant through our joining the Community. This assurance also applies to any motor assemblers who might be adversely affected if this country concluded a free trade agreement with Britain.
Can the Minister say what response there was from the motor car assemblers to the offer made by him?
One firm has taken some steps.
Is the Minister satisfied that the steps taken will ensure continuing employment in this industry?
I said one firm has taken steps. It is not a very big firm.
In other words, there was not any great response?
Not yet, but we have been urging them to take the steps recommended by the CIO.
36.
asked the Minister for Industry and Commerce whether, with a view to ensuring continuance of employment in the motor assembly and coachbuilding industries, he will negotiate in the current trade talks for an arrangement whereby there would be a higher rate of duty for imported fully assembled cars than for completely knocked down material.
I am satisfied that it would not be possible in free trade conditions to arrange that the motor assembly industry could continue to be protected.
Is it not possible to make free trade arrangements as was done in the case of the EEC, and to introduce protective arrangements which might disappear over a number of years but which would protect the industry in the short term?
The negotiations are aimed towards substantial freeing of trade and I do not think that in that context these imports, which represent about ten per cent of our imports, would be regarded as outside the scope of free trade.
Does the Minister realise he is painting a very grim picture for the almost 6,000 workers in the upholstery and the motor car assembly trades?
This will have to be faced up to. We faced up to the fact before in terms of the EEC that there were certain industries which could not survive in free trade conditions. There will be employment opportunities which will more than balance this in other types of industry——
And in other lands.
——and that is why we are trying to get our manpower policy going and exhorting manufacturers in the type of industry which will not survive in free trade conditions to take action in other directions. I do not think we can avoid free trade conditions which will come at one time or another.
There is provision in the EEC legislation for the retraining of workers and there is provision from the central fund for such purposes and for rehabilitation, and surely the Minister should seek to get the same sort of provision now as we had before?
We are making provision for retraining. The Parliamentary Secretary has legislation ready to bring to the Dáil dealing with retraining within the context of our manpower policy. We have not concluded an agreement but in concluding an agreement, it would be on the balance of one concession with another received so we would not be looking for any cash in hand or any such contribution to our own redundancy or retraining schemes.
Arising out of the Minister's first reply, do the Government contemplate the complete wiping out of the motor car assembly industry in this country?
Many of the assemblers themselves do not see it as blackly in terms of EEC entry as the CIO. The CIO considered that our assembly industry would not survive in free trade conditions which are coming, whether we like it or not, at one time or another.
My question was not what did the assemblers think, but do the Minister and the Government contemplate that this industry will be completely wiped out?
We expect that there will be entry into a free trade area involving the removal of the protection over a period—there will be substantial protection over a period—but in a free trade situation the Government consider that motor assemblers would not survive.
Surely the weaker partner in any agreement must be given some protection?
This is becoming a debate.
There will be negotiations but it is not fair to take one point and seek to judge the whole agreement on it.
There are 20,000 or 30,000 workers involved.
There is a fund under the EEC.
This is becoming argument versus argument. I am calling Question No. 37.
37.
asked the Minister for Industry and Commerce the initial rate of duty which he contemplates will replace the quota system as a measure of protection for the motor vehicle assembly industry on the conclusion of the proposed free trade agreement with Britain; the duration of the proposed transitional period; and the rate of gradual reduction of that duty.
The negotiations with Britain are still in progress and, therefore, I am not in a position to give the Deputy precise information. I can say, however, that, if the negotiations should result in a free trade area agreement, the duty which would be applied to motor vehicles at present subject to quota restrictions would, on the removal of these restrictions, be that shown in the Irish Tariff. The protective element in this duty, which would also have a revenue element, would fall to be eliminated over a transitional period in respect of imports from Britain.