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Dáil Éireann debate -
Thursday, 14 Mar 1974

Vol. 271 No. 3

Ceisteanna—Questions. Oral Answers. - Car Assembly Industry.

151.

asked the Minister for Industry and Commerce if he proposes to take any action to safeguard the jobs of those engaged in the car assembly industry; if he will state the number of those workers who have lost employment during 1973; and if he has had any consultation with the employers with a view to providing alternative work.

152.

asked the Minister for Industry and Commerce if he will make a statement on the future of the motor car assembly industry in Ireland.

With the permission of the Ceann Comhairle, I propose to take questions Nos. 151 and 152 together.

I am not aware that there was any loss of jobs in the car assembly industry in 1973 though, before the end of the year, one firm went on short-time. More recently two other assembly firms have also gone on short-time, due largely to a decline in sales as a result of the energy situation.

I am, of course, aware that there has been some disquiet in regard to the long-term prospects for motor assembly and the possibility of consequential job disturbance in the industry.

Over the last year, however, a number of the larger assemblers accounting for a substantial part of the industry's total output, have publicly stated their intention of remaining in motor vehicle assembly on a long-term basis. Nevertheless it would be unrealistic to expect that all assembly firms can continue in assembly up to and beyond the year 1985 when the special import arrangements for the motor industry will cease to operate. This, indeed, was recognised when the specially long transitional period for the industry was negotiated with the EEC. That extended period was designed to allow ample time for individual assemblers to prepare for eventual full free trade conditions within the Community and so maintain the employment afforded by motor assembly either in the industry itself or in alternative industrial activity.

I will welcome and give my full co-operation to proposals for setting up manufacturing operations which will provide alternative employment for workers engaged in assembly firms. I should stress, however, that if any firm embarking on such a programme is to continue to enjoy facilities for the importation of fully built-up vehicles. I would first have to be satisfied as to certain conditions. Chief among these would be that the alternative project would have long-term viability and would offer comparable employment to all those in the assembly plant willing and able to take up employment in the new undertaking.

I gather from the Minister's reply that he admits there is difficulty in so far as the future of the car assembly industry is concerned, particularly when he talks about alternative employment in that industry. Would he have a special look at the Wexford town area where we have a car assembly industry and where we already have a fine wool fabrics industry in very severe difficulty? Would he have an honest appraisal of Wexford town in view of the unemployment situation facing that town in particular?

The Minister for Industry and Commerce, for whom I am answering today, is concerned with the situation in Wexford town particularly arising out of the problem in relation to another factory on which the Deputy is aware there is another question down. I know it is giving the Minister concern and that he is trying to meet that situation.

Is the Minister aware that a number of people in the south Dublin area have been served with redundancy notices to take effect from the start of the financial year? While one motor car assembler has undertaken to establish a new industry to absorb the disemployed workers other assembly industries have not done the same. Can the Minister explain why these particular companies should go out of the business when at least two people assembling in my constituency can find it profitable to continue doing so and, indeed, to expand?

As I mentioned in my original reply, there has been no notification to the Department of jobs lost in motor assembly. I am aware that recently two firms have gone on short time. In one case workers are being paid for a full week. I do not think I am in a position to give any further data in regard to that.

Is the Minister saying there were no jobs lost in the last one-and-a-half years in the car assembly industry, that nobody is redundant in the car assembly industry?

That is a separate question.

There has been no notification to the Department of jobs lost in the motor assembly industry in 1973.

Is the Minister saying he is not aware of jobs lost in the motor assembly industry? As a member of the Cabinet he should be aware of the position.

I asked the Minister a rather detailed question and apparently he is not fully briefed on it. I realise I have him at a disadvantage because it is not his own Department. Would he agree that when at least two major assemblers can find it possible not only to continue in full-time assembly but, indeed, have proposals for massive expansion and other assemblers who have given workers these redundancy notices—they are not unemployed yet —and are closing up their industries, that this is a desertion of the long-term negotiations regarding our EEC entry which were carried out by the former Minister for Foreign Affairs?

It is a rather complex question and I would rather not hazard a comment on it.

On a point of order may I resubmit this question next week because apparently the Minister cannot deal with it in detail now?

That will have to be ruled on by the Ceann Comhairle's office.

As a general comment I might offer this: if Deputies want considered statements by a Minister on policy it might be well that they deferred them. Deputies are well aware of the circumstances in which most Minister are unable to be here today and some of us have to handle their questions in bulk. The Ministers responsible, including myself, who have a number of questions to answer, will do our best to supply Deputies with information. If Deputies want fuller information, particularly on policy of the Departments concerned, it would be well to defer the matter.

I would like to put it on the record——

The Deputy may not. I am calling Question No. 153.

——that if the Minister were capable of answering the questions relating to his own Department and not be so pompous about——

The Deputy is making a statement. I am calling Question No. 153.

The Minister is responsible for the Department of Posts and Telegraphs and he will not answer questions on his own Department.

We finished that. I am calling Question No. 153.

153.

asked the Minister for Industry and Commerce if he is satisfied that the Irish motor assemblers will be able to comply with the proposed harmonisation of national laws on motor vehicles by 1975; whether the laws will provide for driving on the right-hand side of the road; and if he will make a statement on the general situation regarding motor assembly in Ireland.

The Community programme for the harmonisation of national laws on motor vehicles envisages that proposals for directives will be put forward by the Commission before 1st January, 1976, for adoption by the Council by 1st January, 1977. A proposal to have right-hand drive introduced in all the member states of the Community has not been made by the Commission.

The Commission's proposals relate to such matters as the harmonisation of safety requirements, and pollution and environmental protection which are not my responsibility. So far as the motor vehicle assembly industry is concerned, the assemblers here are mainly engaged in the assembly for the home market of aggregates of parts imported from other member states, and the programme should not cause them any real problem.

As to the final part of the question, I would refer the Deputy to the answer which I have just given to questions by Deputy Timmons and Deputy Allen.

Is the Minister aware that the EEC directive says that each car produced within the Community must be identical to the prototype? Can he tell me whether this is a physical possibility among Irish motor assemblers today?

That is a separate question.

No, it is the same question. I am asking whether in the case of motor assemblers——

The Deputy would want to put down that question.

The Minister has covered the point already. According to the regulations, I understand that each car should be identical to the prototype. It is not law yet, but it is on the way.

The Deputy has asked two questions in regard to complying with harmonisation and providing for driving on the right hand side of the road.

Is the Deputy concerned with the programme which was approved by the Council in December, 1973, as part of the general timetable for the elimination of technical obstacles to trade?

That is right.

That programme set out a timetable with specific dates by which proposals would be forwarded by the Commission and adopted by the Council. The final directive for motor vehicles is to be submitted by the Commission before 1st January, 1976, for adoption before January, 1977. The programme does not include proposals for right-hand drive to be adopted throughout the Community, and indeed it seems unlikely that such a proposal will emerge in the near future if one is to judge from questions recently answered by the Commission which recognise the tremendous problems which such a course would pose for member countries who would have to make a changeover from left-hand drive.

Can I take it from what the Minister says that extra time will be given to motor car assemblers to adapt their plant for right-hand drive?

I think that is implicit in it.

That is what I was concerned with.

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