asked the Minister for Industry and Commerce if he will indicate the number of cars assembled by the manufacturers or assemblers in the last year to the most convenient date by (a) the UK (b) all EEC countries and (c) Ireland; and, if Ireland is below the average in this respect, if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Car Assembly Industry.
23.
Published statistics available in respect of the production of motor vehicles in the EEC cover the six member states which manufacture motor vehicles, namely, Belgium, France, Italy, Netherlands, West Germany and the United Kingdom. These production figures include aggregates which are assembled elsewhere than in the country of manufacture. Figures are not available in respect of assembly only.
The total number of motor vehicles that is private cars and commercial vehicles, produced in the six member states mentioned, in the calendar year 1974, was 10.530 million as against 12.071 million in 1973, a decline of 12.8 per cent. The figures for the UK only, were, 1.936 million in 1974, compared with 2.164 million in 1973, a decline of 10.5 per cent. In the same period the assembly of private cars and commercial vehicles in Ireland declined from 61,276 in 1973 to 53,540 in 1974, that is by 12.6 per cent.
If it is relevant, could the Minister tell us whether he has any indication as to what might be the future of the Irish car assembly industry?
The Deputy is no doubt familiar with the protocol attached to our Accession Treaty. As far as I see it, the future is this. On the basis of our costs, structures and skills, we have a real future on the condition that we get a volume larger than that directed at our home market. In other words, firms like Ford which are able to reach a volume that encompasses exports and, perhaps, other firms as well have a firm future. The other sector where there is a firm future is in components and, as I think the Deputy knows, we are vigorously diversifying in that direction. But firms doing a very small number of cars for the Irish market have unit costs so enormous that, after the ending of our special period, they would not be viable. That is as I see it.
But there will be assembly continued even after the date.
I believe, on the basic economic criterion, we can look forward to the health of a small number of large assembly firms.
In view of the Minister's statement about the Ford Motor Company, would he not recommend to the Government at present that their priority in purchasing of cars and so on should be from a company such as Ford? Would the Minister not recommend that to his colleagues?
The Deputy is raising another matter. Question No. 24.