§ Mr. BakerTo ask the Secretary of State for Trade and Industry if it is his policy that the exemption which allows exclusive car distribution and dealership arrangements will end in October 2002. [108177]
§ Dr. HowellsThe provision permitting car manufacturers to operate selective and exclusive distribution networks on certain conditions, commonly known as the cars block exemption, is a European Commission Regulation (Regulation (EC) 1475/95). The European Commission is currently reviewing its operation in order to draw up an evaluation report by the end of this year. This report will in turn provide a basis for discussions involving the Commission and the member states on what, if anything, should replace the block exemption when it expires on 30 September 2002. We wish to ensure that the review is undertaken in as thorough and transparent a way as possible.
The UK Government's policy towards the block exemption will be informed by the findings of the Competition Commission about its effects upon the market for new cars in the UK.