HC Deb 25 July 1984 vol 64 cc653-4W
Mrs. Ann Winterton

asked the Secretary of State for Trade and Industry (1) when the proposed European Economic Community block exemption regulation, currently in draft form, is expected to come into operation;

(2) when he expects the European Economic Community revised draft block exemption regulation to be published.

Mr. Fletcher

The Commission is still engaged in consultations on a draft block exemption regulation which will exempt selective distribution agreements from motor vehicles from the prohibition on restrictive agreements in article 85(1) of the Treaty of Rome.

It is not possible to say when it will come into operation, although it is not expected to be before the end of this year.

A draft of the proposed regulation was published in the Official Journal on 24 June 1983. It is not usual for further revisions to be formally published by the Commission.

Mrs. Ann Winterton

asked the Secretary of State for Trade and Industry what he expects the effect to be upon the level of Japanese motor vehicle imports of the implementation of the proposed European Economic Community draft block exemption regulation.

Mr. Fletcher

I have no reason to expect that the regulation will have any effect on the level of imports of Japanese motor vehicles into the United Kingdom.

Mrs. Ann Winterton

asked the Secretary of State for Trade and Industry if he will estimate the effect of the implementation of the proposed European Economic Community draft block exemption regulation will have upon existing motor vehicle distribution networks and profit margins in the United Kingdom.

Mr. Fletcher

I cannot estimate what effect the regulation might have on existing dealership systems and their profit margins. The regulation recognises, however, the benefits of selective distribution for motor vehicles, and adoption of the regulation offers the prospect of legal certainty for distribution agreements.

Mrs. Ann Winterton

asked the Secretary of State for Trade and Industry if he is considering measures to compensate motor vehicle dealers for losses ensuing from the implementation of the proposed draft block exemption regulation.

Mr. Fletcher

No.