§ Mr. CousinsTo ask the President of the Board of Trade when the trading practices of car manufacturers with regard to car dealerships and car retailing were last reviewed by his Department; what conclusions were reached; and when he next proposes to review this matter again.
§ Mr. Neil HamiltonThese matters were investigated by the Monopolies and Mergers Commission in its report on the supply of new motor cars within the United Kingdom, published in February 1992.
The report concluded, inter alia, that a complex monopoly situation existed, arising from the selective and exclusive distribution system used by most car suppliers in the United Kingdom. The MMC identified a number of restrictions imposed by suppliers in their agreements with dealers which might be expected to operate against the public interest.
The Director General of Fair Trading and Department of Trade and Industry have negotiated with the major car suppliers with a view to concluding an undertaking on the MMC's recommendations. My right hon. Friend the President of the Board of Trade is currently considering options for taking forward action on this report.