22. Mr. J. Enoch Powellasked the Secretary of State for Northern Ireland if he will make a statement on the current problems of the motor trade in the Province.
§ Mr. David MitchellThe current problems of the motor traders in Northern Ireland are caused primarily by the motor manufacturers differential pricing policy under which they take account of sales tax in the Republic of Ireland in setting the standard after tax selling price. These cars may then be exported from the Republic tax-free and therefore seriously undercut the price of Northern Ireland motor traders.
The Motor Agents Association has alleged that a number of vehicles imported into Northern Ireland and 380W assembled in the Republic may not comply with the Motor Vehicles (Construction and Use) (Northern Ireland) Regulations 1976. I have arranged for as many of these vehicles as can be identified to be examined. Breach of the construction and use regulations carries a penalty of £100 for each time the vehicle is used on the road and £200 for the vendor of the vehicle.
In addition, doubts have been expressed about some imported cars being able to comply with the motor vehicle type approval requirements which I have undertaken to introduce in Northern Ireland as soon as possible.