§ Mr. Hal Millerasked the Minister for Trade whether he has any statement to make on recent representations about the control of hiring and hire purchase orders and the possible implication for consumers.
§ Dr. VaughanMy right hon. and noble Friend today announced that, having reviewed the orders relating to hire purchase and control of hiring in consultation with the Chancellor of the Exchequer, the controls would now be removed. Controls on hire purchase were originally part of a wider apparatus of quantitative controls on credit. Changes in the structure of the consumer credit market mean that these controls now contribute little to overall economic policy. Removing them is consistent with our362W policy of dismantling unnecessary controls in the interests of freeing competition and removing economic distortions.
The abolition as from midnight tonight of these controls will benefit the sectors most affected by the regulations, particularly motor cars, but in a way consistent with the Government's economic policy. The abolition of the controls will be of benefit to consumers. I believe that these changes will increase competition in the market and the range of choice for consumers.