§ 25. Mr. Jayasked the President of the Board of Trade whether he will investigate the practice of motor-car manufacturers, through the Car Distribution Committee of the British Motor Traders Association, in collectively imposing a compulsory levy on dealers, in order to pay costs of actions under Section 25 of the Restrictive Trade Practices Act, 1956; if he is aware that dealers who do not pay are refused registration by manufacturers, and thereby denied supplies of cars and spare parts; and what action he proposes to take under Section 24 of the Act to prevent these collective practices.
§ Sir D. EcclesThe distribution scheme agreement has been registered, and its provisions will in due course be examined by the Restrictive Practices Court. Collective financing of legal actions is not unlawful under Section 24 of the 1956 Act.
§ Mr. JayIs the right hon. Gentleman aware that in my constituency a dealer is being forced, against his will and on pain of losing his business, to contribute to this collective fund, which is then to be used to pay for actions in the courts under the Act to stop other dealers reducing their prices; and is not this really a flagrant defiance of the Restrictive Trade Practices Act?
§ Sir D. EcclesI was not aware of that case. If the right hon. Gentleman will give me the details, I will look into the matter.
§ Mr. JayIs the right hon. Gentleman aware that dealers in this industry are unwilling to give their Members of Parliament their names for fear of losing their business? If he wants evidence, 526 will he study the article in the Economist this week, which confirms all the facts given to me by my constituent?
§ Sir D. EcclesI have read the article, but it did not suggest that anything illegal was being done in the industry.