§ Mr. Gouldasked the Secretary of State for Trade and Industry if he will estimate the effect the European Community proposal on car prices is likely to have on the output of cars in the United Kingdom.
§ Mr. ButcherI presume the hon. Member refers to the proposed competition regulation concerning motor vehicle distribution agreements. Where the recommended prices of a manufacturer's vehicles differ by more than 12 per cent. between one EC member state and another, the published draft would allow a distribution agreement only if it permitted authorised dealers to supply other dealers. The implications of such a provision for the market in motor vehicles and for vehicle production in the United 81W Kingdom, if it were adopted in the eventual regulation, are difficult to judge with certainty. Interested parties are invited to comment to the Commission on the draft regulation by 24 October.