HL Deb 10 May 1991 vol 528 cc1280-1

11.20 a.m.

Lord Clinton-Davis asked Her Majesty's Government:

What consultations they have had with consumer organisations on the proposal for a Third Council Directive on the co-ordination of laws, regulations and administrative provisions relating to direct insurance other than life insurance (Corn (90) 348 final, 27th July 1990) and what action they are taking as a consequence.

Lord Henley

My Lords, the Department of Trade and Industry issued a consultative document in February seeking views on the directive. The document was sent to seven consumer organisations, of which four have submitted observations. In addition, one meeting has been held with the Consumers' Association. These and other responses to the consultative document are currently being evaluated.

Lord Clinton-Davis

My Lords, is the Minister able to offer further and better particulars of the representations that have been made by the Consumers in the European Community Group in particular? Is it true that it has expressed deep anxieties about certain aspects of the draft directive, notably the information about the type of policy that is said to be likely to be available to consumers, the contract terms and questions relating to arbitration and redress? In regard to those three areas can the Minister say, concisely, where the Government stand?

Lord Henley

My Lords, very broadly, because I would rather not go into detail about all of the representations made by those four bodies, all four consumer associations which responded supported the third directive and particularly the provisions to increase competition and choice. As the noble Lord said, there were some very specific suggestions for additions or clarifications, particularly in the fields which the noble Lord mentioned. They concerned the provision of information and arrangements to deal with complaints. Obviously the department will consider them carefully and take them fully into account.

Lord Clinton-Davis

My Lords, will the Minister indicate the timescale that is likely to apply in respect of meetings of the Council and when it is likely that the directive may come into force? I do not know what the present state of play is in that regard. Can the Minister enlighten me?

Lord Henley

My Lords, as the noble Lord will know, we asked for responses to the consultative document by 12th April. The directive is now in the initial stages of discussion and the Commission hopes that a common position will be achieved by the end of this year, with adoption sometime in 1992.