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A Tyre Industry for the Irish Free State
Page 85
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1N the absence of the Irish national daily newspapers, the recent Orders prohibiting the import of pneumatic tyres into the Free State, and the report that the Government contemplated giving, the Dunlop Rubber Co., Ltd., which is establishing a factory at Cork, a monopoly in the manufacture and sale of pneumatic tyres, has caused some confusion on both sides of the Irish Sea. The confusion has arisen as a result of the limited publication of the Orders restricting the import of tyres and the attitude of the Government in granting a monopoly.
For some time the idea of establishing a tyre industry in the Free State has been in the minds of the Government. Many concerns considered .that the market was not sufficiently large to warrant setting up a special factory.
The Dunlop Rubber Co., Ltd., however, came to an agreement with the Minister for Industry and Commerce, undertaking to establish a factory in the country for the production of
about 80 per cent. of the Free State's total requirements of tyres, provided that the Government afforded protection by restricting imports. The 20 per cent, of tyres not to be manufactured in the Free •State, factory would comprise only those which could hot be economically produced in the country, and would be imported without additional impost.
The company also agreed to sell its products at not more than 15 per cent. above the corresponding prices obtaining in Great Britain. The difference, in prices is now SO per cent. Under the present agreement the Government will impose no duties on tyres of Irish manufacture.
It should be noted that, although the Dunlop Rubber Co., Ltd., will enjoy an effective,rnonopoly by virtue of the import restrictions on pneumatic tyres, the Government has granted no legal monopoly. The Governinent has agreed to issue a licence to the concern to manufacture pneumatic tyres. That licence was available to any rubber organization that applied..
It is estimated that upwards of 1,000 persons will eventually be employed in the new Cork factory, and the terms of the agreement ate for 15 years. The value of motor tyres used in the Free State in a year is £200,000-£300,000.
Temporary licences, expiring at the end of the -present month, have been issued to 'all concerns and individuals usually importing tyres for wholesale or retail distribution, and quota periods have been Eked by the Executive Council in connection with the restrictions. With regard • to the importation of pneumatic tyres of specified sizes intended for use on mechanically propelled vehicles other than bicycles or tricycles, the three months from October 1 December 31, 1034, have been fixed as the first quota period, and 36,000 tyres have beenfixed as the quota. The specified sizes enumerated in the Orders include virtually all sizes in common use.