§ Mr. Roger Kingasked the Secretary of State for Trade and Industry whether he will make representations to the EEC that, in the event of the introduction of the proposed directive on motor car selective distribution, individual currency fluctuations between member states should fall outside any pricing policy.
§ Mr. FletcherNo. In considering whether to withdraw the benefit of the regulation in a particular case the Commission will have regard to whether substantial price differences are chiefly due to the selective distribution system. It will accordingly be able to take currency fluctuations into account in that context.
§ Mr. Roger Kingasked the Secretary of State for Trade and Industry if he will examine what further United Kingdom industries would benefit from proposals similar to the EEC directive on motor car selective distribution with a view to making representations on their behalf to the EEC.
§ Mr. FletcherNo. It is for the European Commission to examine whether there are selective distribution systems in other industrial sectors which would be suitable for exemption under article 85(3) of the Treaty of Rome from the prohibition on restrictive agreements in the European Community's competition rules.
§ Mr. Roger Kingasked the Secretary of State for Trade and Industry what information he has of the consequence of reducing United Kingdom car retail prices in compliance with the proposed EEC directive on selective distribution upon the viability of the British motor industry.
§ Mr. FletcherRetail car prices in the United Kingdom will be determined by a wide range of factors, of which the proposed regulations will be only one; without any874W such regulation there has been a marked reduction since 1981 in the car price differential between this country and other member states. The Government have received a wide range of views about the effects of the regulation. They do not believe that it will jeopardise the viability of the British motor industry.
§ Mr. Roger Kingasked the Secretary of State for Trade and Industry whether he will make representations to the European Commission that in the event of the introduction of the proposed motor car selective distribution policy, car model specification and back-up services should be made identical in all member countries.
§ Mr. FletcherNo. Apart from the requirements of national safety regulations these are matters for manufacturers to consider in the light of their assessment of the demands of the market.
§ Mr. Roger Kingasked the Secretary of State for Trade and Industry if he intends to issue directives to the United Kingdom car retail trade to control discounting policies in order to ensure compliance with the proposed EEC directive on selective distribution.
§ Mr. FletcherNo. Discount policies in respect of motor cars are a matter for manufacturers and their franchised dealers. It will be for the EC Commission to determine whether such policies comply with the proposed regulation.
§ Mr. Roger Kingasked the Secretary of State for Trade and Industry what effect on the efficiency and competitiveness of British motor manufacturers, their suppliers and the motor car retail trade he expects the EEC directive on selective distribution to have.
§ Mr. FletcherIt is the Government's belief that the regulation should allow market forces to play a greater part in the operation of the internal market in cars and that this will both help reduce price differentials and give further impetus to the motor industry's improving competitiveness.
§ Mr. Roger Kingasked the Secretary of State for Trade and Industry what talks he has had with the Motor Agents' Association on the effect the proposed EEC directive on selective distribution will have on the United Kingdom retail motor trade.
§ Mr. Roger Kingasked the Secretary of State for Trade and Industry what talks he has had with the Society of Motor Manufacturers and Traders and individual car and component manufacturers on the subject of the proposed EEC directive on selective distrbution.
§ Mr. FletcherMinisters and officials from the Department have had frequent discussions and exchanges with representatives of the various interests within the motor industry and its retail trade, including the Society of Motor Manufacturers and Traders and the Motor Agents Association, on the EC Commission's proposed regulation.