Vol. 418 No. 8
8 Mr. Taylor asked the Minister for Industry and Commerce if he will make a statement regarding the representations of the Society of the Irish Motor Industry regarding the importation into Ireland of second-hand Japanese cars; if he will outline the position of his Department and the Government in the matter; and if he will make a statement generally on the matter.
21 Mr. Deenihan asked the Minister for Industry and Commerce if he intends to set up an interdepartmental committee to consider all aspects of the Irish motor industry.
25 Mr. Barry asked the Minister for Industry and Commerce if, in view of the responsibility of different Government Ministers, such as the Environment, Justice, Finance and Labour, he will seek the establishment of an interdepartmental committee to consider all aspects of the trade in imported second-hand cars.
44 Mr. Creed asked the Minister for Industry and Commerce if he intends establishing an interdepartmental committee to consider all aspects of the trade in second hand car imports and to investigate the consequences and implications for the motor industry and the Exchequer.
46 Mr. Allen asked the Minister for Industry and Commerce if he will set up an interdepartmental committee at the highest level to consider all aspects of trade in the importation of second-hand cars from Japan and its consequences for the motor industry and for the Exchequer.
47 Mr. Noonan (Limerick East) asked the Minister for Industry and Commerce if his attention has been drawn to the representations made to the Taoiseach by the SIMI that an interdepartmental committee to consider all aspects of the trade in second-hand Japanese car imports should be set up and its consequences and implications to the motor industry and the Exchequer; if he has considered this request and if he will outline his views on the matter.
I propose to take Questions Nos. 8, 21, 25, 44, 46 and 47 together.
As Deputies will be aware, I have been receiving representations for some time past on behalf of the Society of the Irish Motor Industry seeking to have restrictions placed on the importation of second-hand Japanese cars. Such restriction of competition would clearly not be in the interests of the consumer. In addition, our international obligations as parties to the GATT and as members of the European Community preclude the imposition of unilateral restrictions on imports.
The main thrust of the SIMI representations in relation to Japanese used car imports is that the increase in these imports is a major factor in the decline in demand for new cars in Ireland. In fact, the fall in demand for new cars worldwide is attributable to the prevailing recessionary conditions. The Irish new car market, which enjoyed buoyant growth in the three-year period to 1990, suffered a decline in 1991 in common with other countries though of less severity than the decline in the UK car market. Demand for new cars in Ireland can be expected to rise again as international economic activity gathers pace.
Imports of Japanese second-hand cars account for less than 3 per cent of the Irish second-hand car market and, while these imports have injected an element of competition into the car market here, they could not reasonably be regarded as undermining the market for new cars in Ireland. The most up-to-date statistics indicate that Japanese used car imports levelled off in the final quarter of 1991 and their share of total second-hand car imports has declined.
In all these circumstances I do not see any justification for the establishment of an interdepartmental committee as proposed.
I thank the Minister for his lengthy reply. Would he confirm that Ireland is the only country in the European Community which accepts these used cars from Japan and that the reason these used cars are being dumped — I use that word advisedly — in large numbers in Ireland is that they are being forced off the road in Japan having failed stringent road tests and, consequently, that it is unacceptable and dangerous to allow them on Irish roads without checking them first?
It is not correct to say that Ireland is the only country which allows used cars from Japan to be imported. I understand that the importation of these cars into Britain is lawful but they are not imported in any significant quantities because second-hand car prices in Britain are significantly lower than they are in Ireland and the competitive situation does not require their importation. Apart from Britain, Ireland is the only member state of the European Community where people drive on the left hand side of the road. Therefore, apart from Britain, Ireland is the only country where the question of imports would arise. I do not accept that these cars are in any way dangerous or inferior. It is a well-known fact that they are tested before they are exported from Japan and that they are found to be satisfactory and safe. I am not aware of any evidence that they are in any way less roadworthy than corresponding cars of the same age originally imported here new from Japan.
Is the Minister aware of the statements made by the Society of the Irish Motor Industry to the effect that these cars have not been manufactured to European Community specifications, and that, therefore, it is incongruous that they should be allowed in here? Would the Minister indicate to the House the basis for his information that these cars are tested in Japan and found to be satisfactory given that the information supplied by the society indicates the contrary, namely, that they failed to pass stringent motor tests introduced in Japan and therefore may not be driven in Japan, and they are being dumped here?
I do not accept that they are unsafe in any way. Apparently, it is the practice in Japan for consumers to change cars more frequently than consumers in Europe but, apart from any tests carried out in Japan, the tests which have been carried out in this country would seem to indicate that the standard of these cars is at least the equivalent of cars of a similar age which were imported new into this country from Japan. The statement referred to by the Deputy that the cars are not manufactured to European Community specifications is misleading because they are manufactured to Japanese specifications which are at least the equivalent of European Community specifications and, in some instances, of a higher specification.
