HL Deb 19 July 1990 vol 521 cc1008-9

3.15 p.m.

Lord ClintonDavis asked Her Majesty's Government:

What action they propose to take in response to the recommendation of the Office of Fair Trading concerning timeshares.

Lord Strathclyde

My Lords, the Director General of Fair Trading's report on timeshare was published on 3rd July. It makes a number of legislative proposals. The Department of Trade and Industry is considering his recommendations carefully.

Lord ClintonDavis

My Lords, I am obliged to the noble Lord for that reply. Do the Government recognise that speed is of the essence here because abuses identified by Sir Gordon Borrie in his excellent report will continue unless and until legislation is invoked? Does he recognise that Sir Gordon has very strongly urged that legislation is required to deal with unethical practices which prejudice consumers and ethical companies alike and that selfregulation simply will not suffice?

Lord Strathclyde

My Lords, all I can say to the noble Lord is that the DTI will make a comprehensive response as soon as possible; and after that we shall be able to see exactly what course of action to take.

Lord Williams of Elvel

My Lords, can the noble Lord tell us whether other countries in the European Community have similar problems to those identified by the director general; and if so, how do they deal with them?

Lord Strathclyde

My Lords, I cannot answer for what happens in other countries of the European Community.

Lord Ezra

My Lords, can the noble Lord indicate the extent to which the industry is itself trying to remedy the defects identified in the report by the Director General of Fair Trading and the extent to which he feels that this might go some way to solving the problems?

Lord Strathclyde

My Lords, I am aware that the Timeshare Developers Association was criticised somewhat within the report. We have had a period of selfregulation for some time. Now the department must study the recommendations of the report to see what should be done in the future.

Lord Jenkins of Hillhead

My Lords, what does the noble Lord mean when he says that he cannot answer for other countries in the European Community? He and his ministerial colleagues are constantly trotting out comparisons when they happen to think they are favourable to the Government, whether yesterday or the day before about the number of directives implemented by different countries or about inflation rates or growth rates when the figures were favourable long ago.

Lord Strathclyde

My Lords, all I can say is that I am not responsible for the decisions taken by national governments of other European Community countries There is a European Commission dimension to this and I understand that the European Commission is also looking into the problem.

Lord Williams of Elvel

My Lords, will the noble Lord discard his position of total ignorance about what happens in other member states of the Community? Will he kindly find out what happens, report back to the House and see what lessons the Government should be learning?

Lord Strathclyde

No, my Lords. The Office of Fair Trading has just made a comprehensive report about the whole industry. We have now received that report; and in the light of considerations we shall then be taking further action.

Lord ClintonDavis

My Lords, will the Minister give some further and better particulars as to what he means by urgent consideration? Can we in fact expect legislative proposals in the next Parliament to deal with this matter, bearing in mind, as I said before, that the abuses continue? Secondly, is he aware that the European Commission has introduced, or is about to introduce, proposals dealing with this very matter? Does he consider it appropriate for the European Commission to do that? I hope he will say yes.

Lord Strathclyde

My Lords, the matter is still under discussion as it comes under the threeyear future plan. As regards the timing of the department's response, that will be given as soon as possible.

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