asked the Minister for Industry, Commerce and Energy if he will make a statement on the present position and the prospects of the motor assembly industry.
Ceisteanna—Questions. Oral Answers. - Motor Assembly Industry.
20.
As I am sure the Deputy is aware, on accession to the EEC provision was made for the con-tinuation of the special arrangements then in existence for the motor assembly industry with certain modifications until 1 January 1985. From that date there will be full free-trade in motor vehicles. The extended transitional period of 12 years was sought to enable the industry to adapt to free-trade conditions, as it was envisaged that not all firms would continue in assembly up to and beyond 1985.
To date, firms accounting for approximately half the numbers engaged in assembly have provided, or are in the process of providing, long-term employment for their assembly workers either in continued assembly or in alternative industry. As half of the extended transition period has now elapsed, I am most concerned to see that firms which do not propose to continue assembly on a long-term basis take positive steps towards providing long-term employment for their work forces. I should like to take this opportunity to stress some points I made in a recent public statement on this matter.
I do not regard diversification as a matter solely for the assembly firms. The unions and the workers should realise that, however difficult the change-over may be, they must not sacrifice long-term employment for apparent short-term gains. Co-operation by all to ensure a smooth transition is essential if we are not to end up with the worst of all possi-ble situations, namely, firms ceasing assembly without having made arrangements for alternative manufacturing operations.
The Industrial Development Authority are prepared to provide grants for approved diversification projects and may also be in a position to give help in other directions to firms wishing to diversify. If Irish assemblers feel that official intervention with their foreign principals would be of assistance in pushing forward their plans in Ireland, I can assure them that they will get all possible aid from myself and the agencies associated with my Department.
It is now a matter for individual firms which have not yet done so, in co-operation with their assembly workers and the trade unions, to make full use of the aids provided and thereby secure without further loss of time the long-term future employment of their assembly work forces.
I think the Minister said half the firms involved had provided or were in the course of providing the alternative employment to which the arrangements he mentioned refer. Would that half of the firms represent about half of the employment involved too? Has the Minister got figures for that?
I did not say half of the firms. I said firms accounting for approximately half the numbers engaged in assembly. The actual number of firms is less than half. It would relate to about half the assembly workers.
I am sorry. Has the Minister any sanction or any scheme up his sleeve for ensuring that the remaining firms discharge their obligations in this regard, although I appreciate the point he made about the burden not lying solely upon them?
In certain circumstances I think I have the right to withdraw FBU importation licences. Obviously one would not do that unless a very serious view had to be taken of the situation.
Is the Minister aware that in Northern Ireland cars cost £1,000 and sometimes £1,500 less than they cost here? Is he not concerned in the long-term that, under EEC regulations, the price of our vehicles will have to drop accordingly?
One reason among others why cars here cost more than they do in Northern Ireland is that there is no significant motor assembly there that I am aware of, and no motor manufacture. There is still considerable assembly here and it is my concern to preserve that assembly, at the same time encouraging those firms who have not already done so to diversify gradually out of assembly and into suitable manufacturing projects.