asked the Minister for Industry and Energy if he will give details of all applications pending in his Department for permission to import built-up cars stating the dates on which the applications were received; and when decisions are likely to be made in respect of each such application, if any.
Ceisteanna—Questions Oral Answers - Car Imports.
9.
My Department has at present before it two applications for permission for the commercial importation of fully built-up motor vehicles from Japan. For reasons of confidentiality it would not be appropriate to give details of the applications. I can say that both applications relate to the importation of vehicles of third country origin otherwise than on the basis of assembly in Ireland of the make of vehicle to be imported, and thus they raise implications for the special agreed arrangements for the motor vehicle assembly industry. I have not yet had an opportunity of considering all aspects of these applications and at this stage I am not in a position to indicate when decisions on them are likely to be taken.
Having regard to the fact that if those applications were granted it would reduce further the level of employment in that already diminishing industry here and throw skilled labour on to the scrap heap will the Minister assure the House that the applications will not be granted so that employment in the industry is preserved?
Two applications are before me but no decision has been made on them. I will bear the views of the Deputy in mind.
I recognise that the Minister of State is not in a position to give us details of the applications which might have commercial implications for the people concerned but I should like to know if he can tell the House the number of cars involved in both applications?
I do not have that information in my brief. It would be a matter for negotiation.
Surely the applications would have to be in the form of seeking permission to import some specific number of fully built-up vehicles? I suggest that the information is somewhere in the Minister's brief.
It is not in my brief but I am familiar with the applications and I can tell the Deputy that I do not have any figure in my mind in regard to the applications. That is a matter for negotiation.
Can the Minister say whether the nature of the applications is such that if they were granted the type of vehicle being imported would be in competition with local interests and might thereby affect employment in the assembly of similar type, size, style and cost vehicles being assembled here?
The matter is confidential and, obviously, I would not like another Talbot situation to arise. I am sure the Deputy appreciates my concern in that regard. As the applications must be dealt with on the basis of confidentiality the Deputy will appreciate why I do not wish to discuss it further.
I find it difficult to believe that two people have approached the Department and applied to import an unspecified number of vehicles. I cannot see how such an application can be considered. Does the Minister know if the applications are to import tens, hundreds or thousands of cars? I must press the Minister to give the House this information. Will the Minister agree that it is extraordinary for two firms to approach his Department in such an unspecified manner?
The Leader of the Opposition is aware of the outcome of the Talbot case and he is also aware that the importation of fully built-up units is a matter for negotiation between applicants and the Department. Set figures have not been discussed in either case.
In the case of Talbot there was a specific number of vehicles.
If we are to reform the Dáil we need to have an honest Question Time.
10.
asked the Minister for Industry and Energy his Department's policy on the granting of licences to import built-up motor vehicles.
The Motor Vehicles (Registration of Importers) Act, 1968, which governs the commerical importation of fully built motor vehicles, provides the statutory framework for the special arrangements, known as the scheme, for the Irish motor assembly industry. These arrangements were agreed initially in 1967 between the British motor manufacturers, their Irish assemblers and the then Minister for Industry and Commerce and subsequently were agreed, with certain modifications, modified by Protocol 7 annexed to Ireland's Treaty of Accession to the European Communities.
The main feature of the scheme is the channeling of fully built-up motor vehicles through registered importers. A person may qualify for registration either on the basis of assembly or under global quota for vehicles of Community origin.
There are three categories of registered persons:—
First, the registered importers/assemblers of Community vehicles who maintain their 1965 level of assembly and employment. These are free to import fully built-up vehicles, for which they are registered, without restriction as to quantity.
Secondly, any person who, subsequent to the commencement of the 1968 Motor Vehicles Act, commences assembly of vehicles from new aggregates of parts which qualify as completely knocked down, will be eligible for registration for the importation of fully built-up vehicles provided his assembly reaches the required level and for so long as assembly is maintained at that level. The required level of assembly is as follows:
(i) 5 per cent of the total market then current for private cars, where the assembly of private cars only is involved, or
(ii) 10 per cent of the total market then current for commercial vehicles, where the assembly of commercial vehicles only is involved, or
(iii) 5 per cent of the total market then current for private cars and commercial vehicles, where the assembly of both private cars and commercial vehicles is involved.
In the case of a person who commences the assembly of vehicles of non-Community origin, such as Japanese vehicles, and reaches the required level for registration, then imports of fully built up vehicles will be restricted on a ratio basis. The ratio applied is that existing between the total number of vehicles of Community origin imported fully built-up and the number of vehicles of Community origin assembled in Ireland.
Thirdly, in accordance with the global quota arrangements under Article 3 of Protocol 7 any person appointed sole importer in Ireland for a make of vehicle originating in the Community, but which is not already receiving special treatment under the scheme, may apply for registration for the importation of such vehicles in fully built-up condition. The global quota is fixed annually as a percentage of the number of vehicles assembled in Ireland during the previous year. The percentage was fixed at 3 in 1973 and increases by one percentage point each year to reach 14 per cent in 1984. The quota for 1983 is 13 per cent of the total number of motor vehicles assembled in 1982.
The global quota is allocated between the following categories of vehicles: viz., private cars — 85 per cent of the quota, and commercial vehicles — 15 per cent. The quota for each class is further subdivided into two categories — cars not exceeding 1500cc get 75 per cent of the car quota and 25 per cent goes to cars exceeding 1500cc. Similarly, the quota for commercials is divided as to 75 per cent to commercial vehicles not exceeding 3.5 tons tare weight and 25 per cent to those exceeding 3.5 tons.
In addition to the importation of fully built-up vehicles by the categories of registered importers I have already mentioned, section 6(1) of the 1968 Motor Vehicles Act empowers the Minister to authorise a registered person to import a motor vehicle of a make or type not entered in the register.
The Act also provides for the importation by non-registered persons of fully built-up motor vehicles not intended for sale where it would not be appropriate to authorise the importation by a registered importer. These importations are mainly confined to cases involving permanent transfer of residence from abroad which do not fully meet the requirements for duty-free importation under the Transfer of Residence Regulations administered by the Revenue Commissioners.
Could I ask the Minister of State whether the percentages he has read out are obligations imposed on him under the Treaty, or whether the Department have any discretion in the granting of licences for the importation of fully built-up vehicles. In so far as the Minister has discretion, can he assure the House that he will exercise that discretion with the objective of protecting such existing employment as remains in the car assembly industry?
I think the Deputy will accept that I have given a very comprehensive reply on the complicated situation in the motor assembly industry.
Comprehensive waffle.
As I said, there are three basic categories: first, registered importers/assemblers of Community vehicles who maintain their 1965 level of assembly and employment; secondly, any person who, subsequent to the commencement of the 1968 Motor Vehicles Act, commences assembly of vehicles from new aggregates of parts; thirdly, those who come under the global quota arrangement. Each category is dealt with differently under the Act. The Deputy can be assured that my Department are very much aware of the need to conserve employment in the industry, and that all applications which come before us for the importation of fully built-up units are looked at very closely.
What I want to find out is whether the Minister has discretion in the granting of these licences or whether he is bound entirely by the regulations he read out. He has not answered the question as to whether or not he has discretion. If he has a discretion, will he use it at all times with the objective of protecting employment?
That is a very important question. It is basic.
I have answered the Deputy as fairly as possible. I have no discretion where the assembler is acting within the scheme. Where I have discretion I can assure the Deputy that each application is scrutinised very closely with the objective of maintaining employment in the industry.
11.
asked the Minister for Industry and Energy the steps being taken and which can be taken to protect existing employment in the car assembly industry.
The special arrangements for the motor vehicle assembly industry, negotiated at the time of our accession to the EEC and covering the period up to the end of 1984, were intended to afford a long period for transition to free trade in motor vehicles. Under these arrangements it was envisaged that any firm ceasing assembly and which provided comparable employment for their assembly workers by diversifying into suitable alternative manufacturing industry would continue to enjoy facilities for the importation on fully built-up vehicles.
Unfortunately, changes in the structure of the motor industry world-wide and the economic recession in the conditions unfavourable to new investment, have created serious problems for firms wishing to cease assembly and establish new manufacturing projects.
Firms which can no longer continue assembly and whose consequential arrangements do not fully meet the diversification requirements may be granted facilities for built-up vehicles but on a restricted basis only. The extent of such facilities will depend upon the proposed alternative arrangements. In such cases the primary aim is to preserve as many jobs as possible.
Every possible effort will continue to be made between now and the end of 1984 to induce firms either to continue assembly or, failing that, to provide alternative employment for their assembly workers. It is, however, only realistic to recognise that the proximity of the date for termination of the special arrangements, the depressed state of the motor vehicle market world-wide, and the extremely poor international climate for new investment, are serious constraints on the industry.
Could I ask the Minister if, for the purpose of protecting employment in this diminishing industry, he will consider imposing unilateral restrictions on competitive imports as is done by so many of the other EEC countries in this and other fields.
The Deputy will be aware that I am constrained with regard to industry by Acts of the Oireachtas and by Protocol 7 to the Treaty of Accession. In those circumstances, I can only operate within the confines of Acts of the Oireachtas and Protocol 7.
A final supplementary, please, Deputy. We have spent nearly a quarter of an hour on these two questions and they might be more suitable for discussion under Standing Order No. 35.
It is a very important matter nonetheless, a Cheann Comhairle. Is the Minister aware that Common Market officials are at present investigating no fewer than 500 cases of alleged breaches of Protocol 7 and whether he would consider, in those circumstances, unilateral action on our part in the case of this hard hit industry?
I am not aware of any inquiry being made by the Commission with regard to the Irish Department of Industry and Energy and the motor vehicle assembly industry.
Could I draw the attention of the Minister of State to the fact that there are suggestions that the Nissan company may be about to establish a major motor car manufacturing unit in Great Britian? Would he make sure that the people involved in this area to which Questions Nos. 9, 10 and 11 refer, will be alert to the possibility of supplying components to this vast new Nissan project, if it does get under way?
I am not aware of any decision by the Nissan company to establish an assembly industry in Great Britian. Of course, if there is a possibility for Irish companies to supply components to the British company, they will get every encouragement from my Department.