§ 17. Mr. Teddy Taylorasked the Secretary of State for Trade what representations he has received from industry and commerce about the proposed EEC directive on liability for defective products; and if he will make a statement.
§ The Under-Secretary of State for Trade (Mr. Reginald Eyre)My Department has received over 300 replies from the organisations representing interested parties whom it invited to comment on the draft directive. My right hon. Friend the Minister for Consumer Affairs has also received a number of letters from hon. Members on both sides of the House enclosing correspondence which they have received from constituents about the directive. The Government will take full account of all the views which have been expressed before deciding their attitude to the draft directive.
§ Mr. TaylorIs my hon. Friend aware of the concern in industry and commerce that the directive could frustrate and curb product development and experimentation by saddling firms with a quite intolerable and unlimited liability? How many of the representations made have supported the directive, how many have been against, and what is the Government's attitude to the directive? Have we the power to stop it if we want?
§ Mr. EyreI note the points made by my hon. Friend. It may help if I summarise the effect of the replies which have been received. The consumer movement welcomes the directive and accepts that prices would be increased as a result of it. The British insurance industry believes that it can provide cover, and that the cost of insurance is unlikely to have any significant effect on production costs. Many manufacturers, however, are anxious about the costs involved and urge that if we accept a system of strict liability we should provide a "state of the art" or "development risks" defence.
§ Mr. Fletcher-CookeThis defective directive has been going about for a very long time in one form or another. There is also the report of the Pearson commission on the same subject. When may we expect the Government to make up their minds on the subject?
§ Mr. EyreMy hon. and learned Friend is right to say that this directive has received a good deal of attention. Of course, the version now being considered by the working party of the Council of Ministers is a revised draft. In view of all the representations which have been taken, the Government have reserved their position with regard to their attitude towards the draft until the text of the directive is more clear.