HL Deb 28 November 2000 vol 619 cc1249-51

3 p.m.

Lord Harrison asked Her Majesty's Government:

What steps they are taking, through the European Union, to prevent faulty domestic electrical appliances manufactured outside the European Union and carrying forged trade marks from entering the United Kingdom by means of the Single European Market.

Lord Sainsbury of Turville

My Lords, legislation is already in place which gives local authority trading standards departments adequate powers to remove unsafe products from the market, thus protecting UK consumers.

As regards products carrying forged trade marks, there is an EC regulation applying in all countries of the European Union that allows trade mark owners to ask Customs authorities to seize counterfeit goods being imported from outside the Union. Customs authorities may also seize such goods on their own initiative. Where goods carrying a forged trade mark have entered the single European market, the criminal sanctions applying to counterfeiting activities within each member state are helpful. In the United Kingdom, the offences of distributing or selling counterfeit goods are relevant, and effective enforcement action is possible by trading standards departments, as well as by the police.

Lord Harrison

My Lords, I thank my noble friend the Minister for that Answer. Is he aware of the particular case of a leading kettle manufacture, Strix Limited of Chester, whose position is being undermined by imports of faulty kettles from the People's Republic of China? Does my noble friend understand that this represents both a threat and a danger to consumers in Britain and in the European Union? Finally, what more can the Government do to remedy the situation; for example, what pressure can my noble friend bring to bear on the European Commission to ensure the safety of consumers throughout the European Union?

Lord Sainsbury of Turville

My Lords, the DTI is most conscious of the particular problems faced by Strix Limited, which has a lion's share of the world market for safety cut-off dry boil controls for kettles. That is why the department has taken a good deal of action, both to help that company and to protect consumers in this country. We have made all the trading standards departments in the UK aware of the problem. The DTI's consumer safety newsletter has also featured this particular problem.

Moreover, during an official visit to Beijing, the Secretary of State for Trade and Industry was able to arrange a meeting between executives of Strix Limited and a Chinese Government Minister. As a result of the action that we have taken, the Chinese authorities have now added electric kettles to the control list for commodity inspection, which makes kettles that are to be exported subject to official inspections. We have also made representations to the Chinese Government, both at an EU and at a UK level. However, we are not in a position to do one thing that the company has requested; namely, to ask the Chinese Government to shut down the Yong Heng thermostat factory in GuangDong, which is almost certainly the producer of many of these copy controls.

Baroness Thomas of Walliswood

My Lords, does the Minister agree that many of these goods are freely available from street vendors and, indeed, from markets? Therefore, is he satisfied that trading standards departments throughout the country have sufficient force, funding and staff to deal with this kind of malpractice?

Lord Sainsbury of Turville

My Lords, I believe that I made it very clear that we have given a great deal of information on the matter to trading standards officers. In fact, it is only within the past four weeks that the first example has been found by Brent and Harrow Trading Standards Service in two kettles which fall within this category. Therefore, it is probably not true to say that these products are generally available. Indeed, I believe that there are sufficient resources available, given that trading standards departments have been alerted a number of times by the DTI.

Lord Tomlinson

My Lords, does my noble friend agree with me that the sooner the People's Republic of China becomes a full member of the World. Trade Organisation the sooner we shall have a dispute settlement procedure through which it can be held to account if it breaks the necessary standards for proper trading in the international community?

Lord Sainsbury of Turville

My Lords, it would be an advantage if the People's Republic of China were to become a member of the WTO. That would facilitate the enforcement of some of these agreements.

Lord Razzall

My Lords, contrary to what one might read endlessly in the Tory press and contrary to what one might hear occasionally from the Tory Benches, does the Minister agree that this is a classic example of a matter that would be best dealt with on a pan-European basis?

Lord Sainsbury of Turville

My Lords, we should bear in mind two facts as regards this matter. First, the main cases in this respect have been found outside the UK; and, secondly, we have more power on a European basis to deal with the situation. Therefore, it is true that the matter is best dealt with on a European basis. However, as the DTI is responsible for British industry and its interests, we are taking the matter most seriously.

Lord Elton

My Lords contrary to the suggestions made by the noble Lord, Lord Razzall, the burden of this battle actually rests with very hard-pressed local trading standards authorities and their officers, who are constantly at risk in the boot sales and open markets where they have to enforce the law. Therefore, should not the emphasis be on exerting pressure on the country of origin, when it is known? Indeed, it is not only China that supplies such products. Can the Minister tell us how we can pursue the matter with suppliers of counterfeit patent documents when the country of origin is known?

Lord Sainsbury of Turville

My Lords, the trading standards authorities are, of course, the first point of call in terms of alerting people to these problems. However, as to the question of actually taking action, which, I believe, was the point behind the previous question, that is best pursued on a European level, especially in circumstances where the main offenders have been found to be in other European countries.

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