HC Deb 07 June 1985 vol 80 cc261-2W
Mr. Teddy Taylor

asked the Secretary of State for Trade and Industry what is the purpose of the draft EEC directive on liability for defective products which is being considered at the Common Market's Internal Market Council on Monday 10 June; and what is the policy of Her Majesty's Government on the introduction of such a directive.

Mr. Fletcher

The purpose of the draft EC directive is the approximation of the laws, regulations and administrative provisions of the member states concerning liability for defective products. In particular, the draft directive seeks to establish throughout the Community that producers shall be strictly liable for defects in their products, subject only to certain clearly defined defences and limitations. The draft directive is not on the agenda for the forthcoming meeting of the Internal Market Council.

We agree with the aims of this draft directive. In the negotiations with other Member States we have sought to establish that the defences and limitations are such as to achieve a fair balance between the legitimate interests of consumers and manufacturers. On this basis, we are supporting current efforts to reach an early agreement on the main points of the directive.

Mr. Teddy Taylor

asked the Secretary of State for Trade and Industry what discussions he has had with the Confederation of British Industry and other industrial organisations about the effect on British industry and its costs of the draft directive on liability for defective products which is being considered at the Internal Market Council on 10 June.

Mr. Fletcher

My officials have had regular discussions with the CBI and other industrial organisations about the effect of the draft directive. The Secretary of State has also recently replied to a letter from the CBI on this subject.

Mr. Teddy Taylor

asked the Secretary of State for Trade and Industry if he will take steps to establish whether British insurance companies would be willing to provide cover to industrial firms for obligations and risks under the draft directive on liability for defective products in advance of the consideration of the directive by the Internal Market Council; and if he will make a statement.

Mr. Fletcher

My Department has already established, through contacts with the United Kingdom insurance industry, that the draft directive should not affect the availability of insurance cover for industrial firms, though it may have a marginal effect on the level of premiums. This confirms earlier findings of research undertaken at the European level by the EC Commission.

Mr. Teddy Taylor

asked the Secretary of State for Trade and Industry what is the policy of Her Majesty's Government on the proposal in the EEC directive on liability for defective products that the Commission should be empowered, without reference to member states, to remove the development risk defence from the provisions of the directive after the directive has been in force for a period of seven years; and if he will make a statement.

Mr. Fletcher

There is no such proposal in the draft directive. We would not accept a directive which gave the Commission power to repeal the defence without reference to member states.