HC Deb 23 June 1994 vol 245 c252W
Mr. Nicholas Winterton

To ask the President of the Board of Trade whether full compliance costs assessments have yet been undertaken in connection with the implementation of the European Commission's unfair consumer contracts directive; what are the results of such assessments to date; what benefits this legislation will bring to United Kingdom industry; and how it furthers the Government's deregulation initiative.

Mr. McLoughlin

[holding answer 20 June 1994]: A compliance cost assessment is in the course of preparation following responses to my Department's consultation paper published last October. To the extent that it may call for improved standards in the drafting of consumer contracts the unfair contract terms directive should assist the competitiveness of United Kingdom industry. Political agreement on the directive was reached before the launch of the Government's deregulation initiative, but consistent with that initiative the Government secured the deletion of certain provisions which appeared likely to prove onerous to industry.

Mr. Nicholas Winterton

To ask the President of the Board of Trade what changes were(a) sought and (b) obtained to the early drafts of the EC unfair consumer contracts directive; and to what extent he now considers that the directive is helpful to United Kingdom industry.

Mr. McLoughlin

[holding answer 20 June 1994]: The text of the unfair contract terms directive at the time of its adoption by the Council of Ministers broadly met the United Kingdom's negotiating objectives. In particular, we secured the deletion of potentially onerous provisions regarding the law relating to sale of goods, and agreement that the annex of potentially unfair terms should not be a blacklist. To the extent that it may call for improved standards in the drafting of consumer contracts the directive should assist the competitiveness of United Kingdom industry.