§ Mr. Galleyasked the Secretary of State for Trade and Industry what progress has been made on the draft European Commission directive on product liability; and if he will make a statement.
§ Mr. FletcherThe directive on the approximation of the laws, regulations and administrative provisions of all member states concerning liability for defective products was adopted yesterday by the Council of Ministers. I am very pleased that this long awaited measure of harmonisation and consumer protection has now been agreed. The directive was held up for several years over disagreements between member states about the "development risks" or "state of the art" defence, and financial limts on liability. But a package has now been agreed which allows us to introduce the regime we have been seeking to secure for so long. There will be a development risks defence but no total limit on liability, and although member states will be able to adopt different positions on these two points, the directive as a whole represents a very significant step towards harmonisation of European law in this field.
We must now implement the directive within three years, which we shall do after full consultations with all concerned. In ten years' time the operation of the directive will be reviewed to see if there is a need for even closer harmonisation.