I move that the Bill be now read a Second Time.
It is required in order that full effect can be given to arrangements made with the British vehicle manufacturers and assemblers and with assemblers of non-British vehicles.
Immediately after the conclusion of the Anglo-Irish Free Trade Area Agreement, discussions were taken with British motor manufacturers and their Irish assemblers, with the co-operation of the British authorities. The basis of the arrangements now agreed upon is simple. The manufacturers and assemblers of British vehicles have given me satisfactory assurances of their intention to support the continued assembly of their motor vehicles in Ireland on a long-term basis, and, in return, the Government agreed to extend immediately to these manufacturers the duty reductions on fully built-up vehicles which would not otherwise fully mature until 1975. This means that these vehicles will be admitted free of protective duty.
These assurances provide for maintenance of assembly at the general level achieved immediately prior to the conclusion of the Free Trade Area Agreement, when assembly operations were at a high level generally, and there is also an expression of intent to expand such assembly operations, in so far as this may be consistent with the economics of the operations and the development of the market. In connection with these assurances regard must, of course, be had to fluctuations in market demand which might affect the industry as a whole or the position of particular firms within the industry.
As I indicated in the public announcement, in regard to the arrangements, at the end of November, I have offered comparable concessions to assemblers of non-British vehicles subject to satisfactory assurances given by the manufacturers and assemblers of these vehicles. I am happy to say that satisfactory assurances have been received from the firms concerned and I have been able to extend the benefits of the arrangements to these firms also.
The main provision of the Bill is one for the channelling of imports of fully built-up motor vehicles through registered firms—principally the existing assemblers who have given me the assurances to which I have referred. This provision for improved channels of trade is necessary to ensure that, as the duties on British vehicles are reduced under the Free Trade Agreement, the arrangements will not be undermined by the importation of vehicles by persons who are not parties to the agreed arrangements.
The Bill applies to the principal classes of motor vehicles other than agricultural tractors, large buses and some other vehicles which were not subject to the former quota arrangements. It does not apply to such vehicles as scooters and motor cycles. It covers second-hand vehicles because, otherwise, evasion of the scheme would be possible. Provision is made to enable the definition of motor vehicle to be amended by Ministerial regulations so as to take account of future technical developments and also to permit adjustment of the definition in the light of any difficulties or anomalies that may become evident in the practical application of the measure.
As I have said, all assembly firms which comply with the arrangements will be eligible for registration as importers of fully built-up motor vehicles of the makes and marques which they now handle. A firm may be removed from the register only where it is in breach of an assurance or undertaking given in connection with the arrangements or, by agreement, where a firm merges with another or goes out of business. In the case of assemblers of British vehicles, the only requirement for registration is the assurances they have given to maintain the level of their assembly operations, and all firms concerned have already furnished me with the kind of information which I consider necessary to enable me, if the need arises, to judge whether a firm is complying with its assurance in this regard.
Assemblers of non-British vehicles, who give assurances to maintain, at least, their basic level of assembly, will also be registered. Subject only to a Free Trade Area duty preference for British-built private cars, they will be allowed to do as well in all respects, in the aggregate, as assemblers of British vehicles.
The Bill does not affect the importation of c.k.d. aggregates and there will be nothing to prevent anyone from starting up in the motor assembly business. There is provision to enable such new entrants to qualify for registration as importers of fully built-up vehicles, subject to their achieving a satisfactory volume of assembly.
Although the main purpose of the Bill is to channel imports through the assembly firms, there is provision in the Bill to cover, in certain circumstances, the importation of fully built-up vehicles by firms which are not in the assembly business. One example is British cars of over £1,300 in value c.i.f. which, in the past, were not subject to quota and are imported by certain firms who are not engaged in assembly. These imports will be permitted to continue. After the quota arrangements had been abolished and up to the time the new scheme was announced, a few firms, which are not in the assembly business, imported small numbers of non-British vehicles in fully built-up condition. They will be enabled to continue on that scale. The duty concessions will not, of course, apply since they are available only to registered importers who assemble. Fully built-up imports, mainly by private individuals, will also be allowed on change of residence, tourist or other temporary importation and in other similar circumstances.
I should like to place on record my personal appreciation, and also the appreciation of my colleagues in the Government, of the willing co-operation which the manufacturers and assemblers displayed at all stages of the negotiations and which will, I am sure, continue in the future. We are also appreciative of the assistance and co-operation afforded by the British authorities.
The new arrangements have been welcomed by the industry and I am confident that all concerned will actively co-operate in seeing that they work out satisfactorily. In conducting the negotiations and in making the duty adjustments, the Government have done everything in their power to secure the survival of the Irish motor assembly industry, at its present level at least, for a long period ahead. How successful these efforts may prove in the future will depend to an increasing extent on the attitudes, not only of the management in the assembly industry, but also of the workers. Everybody concerned in the industry must endeavour to secure the highest possible level of efficient and economic operation in the assembly of motor vehicles.