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Dáil Éireann debate -
Thursday, 2 Apr 1981

Vol. 328 No. 5

Ceisteanna — Questions. Oral Answers. - Built-Up Car Imports.

19.

asked the Minister for Industry, Commerce and Tourism whether he intends to make any change in the regulations or other rules on the importation of fully built-up cars.

The importation of fully built-up motor vehicles, is governed by the provisions of the Motor Vehicles (Registration of Importers) Act, 1968. The Act made statutory provision for special arrangements, agreed in 1967 between the motor vehicle manufacturers, their Irish assemblers and the Minister for Industry and Commerce. The objective of these arrangements was to ensure continuation of employment of assembly workers on a long-term basis. The scheme as modified on our entry to the EEC provides for the importation by assemblers of fully built-up vehicles subject to the maintenance of a level of employment either on assembly or comparable operations.

Assembly firms which do not maintain the required level of employment — in most cases that of 1965 — lose their entitlement to import, without restriction, fully built-up vehicles. This does not preclude the Minister from granting limited facilities for importation where such an arrangement would assist the maintenance of employment. It is not proposed to make any changes in the provisions of the scheme, but it will of course be terminated by the end of 1984.

Was this decision taken without consultation with the trade union? In taking it has the Minister not effectively given authority to the assembly industry to make similar applications, which in the end will mean the total closure of this industry?

My information is that the trade union are aware of the situation and of developments. I do not believe that anything has been done without their knowledge.

Were the negotiations between the Minister and the firm not carried out and decisions arrived at between the Minister and the firm without including the men's representatives or without consultations with them?

The workers were informed of the negotiations by the employer.

Were the workers not faced with an agreement, which allegedly would increase jobs in Cork but this agreement does not in fact increase employment by even one job in Cork? Does this not mean that the firm will close down and the workers will be out on outrageous redundancy terms? Would the Minister not reconsider his decision and insist on the firm at least continuing on until 1984, which was certainly the spirit of the 1968 agreement?

The company in question were losing a considerable amount of money. The alternative was to go out of business entirely. If they did that it would mean that some jobs, which are now being held, would be lost entirely in the particular firm. There are jobs now guaranteed in Cork as a result of this agreement. About 90 jobs are being consolidated in Cork as a result of this arrangement.

Have the regulations governing the importation of CKD vehicles been changed since 1977?

None of the regulations have been changed as far as I am aware.

Have they not more latitude now?

I am sure the Minister would not mislead the House but is he under the impression that 90 new jobs were created in Cork? My information from the Transport and General Workers Union is that there will not even be one extra job in Cork. That is not my main interest in the matter.

I did not tell the Deputy that 90 new jobs were being created in Cork. The new arrangements help to stabilise existing jobs in Cork rather than create new jobs.

Can we now expect a total closure of the assembly industry here as a result of the decision by the Minister? Is that what is ahead of us now?

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