asked the Minister for Industry and Commerce if he will make a statement on the future of the motor assembly industry in view of the alarming reports appearing in press announcements and with a view to reassuring the workers in this industry.
13.
Ceisteanna—Questions. Oral Answers. - Motor Assembly Industry.
12.
asked the Minister for Industry and Commerce the present prospects of the motor assembly industry in Ireland.
Mr. R. Burke
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 12 and 13 together. I have had representations from the trade unions and both managements regarding a recent development which would affect motor assembly in two Dublin concerns. The position in this case is that the motor vehicle manufacturer involved recently announced their intention to set up near Dublin a new plant to manufacture motor vehicle components. In the discussions which took place last year with the Department of Industry and Commerce and the Industrial Development Authority the manufacturing firm concerned sought an assurance that, in consequence of their setting up a component plant here, they would be released from the requirement to maintain their level of assembly as a condition for the granting of facilities for the importation of fully built-up vehicles. They were informed by my predecessor that he agreed in principle that as soon as production commenced in the component plant the firm concerned would be released from the requirement to maintain their level of Irish assembly and would be permitted to import in a fully built-up condition the motor vehicles in question; that the Irish Government were especially concerned to ensure that the transition from motor vehicle assembly to the manufacture of components should be achieved in an orderly manner and with the minimum possible dislocation of existing employment; that it was, therefore, the Government's earnest desire to ensure that, in the transition, the volume of total employment should at least be maintained; that the phasing out of motor vehicle assembly should be so arranged that the workers who would be displaced should, if they so wished and were suitable, be given reasonable opportunity of getting employment in the component manufacturing plant; and that, to this end, the firm would co-operate fully in their re-training.
The manufacturer also sought an assurance that in the event of either or both of their assembler-distributors terminating their contracts before production in the new plant commenced and ceasing to carry out assembly they would be allowed to import fully built-up vehicles. They were informed by my predecessor that he agreed in principle that if either or both of the existing assembler-distributors, by their own wish, terminated their present contract before production commenced in the new plant and ceased to carry out assembly of the vehicles in question he would then allow the firm to import fully built-up vehicles to maintain continuity of delivery to the dealer organisations, it being understood that in that event also any workers who would be displaced should, if they so wished and were suitable, be given reasonable opportunity of getting employment in the component manufacturing plant and that, to this end, the firm would co-operate fully in their re-training.
I should add that my only meeting with representatives of the firm concerned took place immediately preceding their announcement. At that meeting while I recognised the need, in the circumstances of our membership of the EEC, to sort out the general position of motor assembly here, I stressed the very great importance I attached to ensuring that the process be carried out with a strict regard for the balance of interests involved. As regards the firm's particular proposal, I indicated that I would expect the phasing out operation to proceed on the basis of humane considerations both as regards re-employment where possible and reasonable treatment otherwise.
The purpose of the special scheme negotiated for the motor assembly industry in 1967, the retention of which up to 1985 with some modifications was agreed in the negotiations for EEC membership, was to provide ample time for the firms in the industry to prepare themselves for ultimate free trade conditions. It was envisaged that at least some of the assembly firms would find it possible, by rationalising production if necessary, to ensure their long-term future in assembly. In this connection I very much welcome recent statements by two of the larger assembly firms that they will continue in assembly on a long-term basis. On the other hand, it was visualised that not all assembly firms might find it possible to continue in that line and the arrangements contemplated that any such firm which maintained employment by diversifying into suitable alternative manufacturing could be granted facilities for the continued importation of fully built-up vehicles.
Is the Minister satisfied that at least two of the major assemblers will not only stay in production for some considerable time but actually have plans to expand their activities?
Mr. R. Burke
I am so aware.
I have read of a certain Japanese concern being interested in assembly here. Have these people started assembly activities?
Mr. R. Burke
I have no information available to me at the moment which would enable me to answer the Deputy's question but, if he puts down a specific question, I am sure he will be given the information.
After three pages of foolscap I thought the Minister would have that information.