Vol. 397 No. 4
5 Mr. Connaughton asked the Minister for Industry and Commerce if his attention has been drawn to the fact that certain hire purchase lending agencies, in conjunction with some sections of the car sales industry, conspire to charge exorbitant rates of interest to car purchasers, particularly in relation to lump sum payments to garage owners by some lending agencies to attract business.
My attention has not been drawn to any conspiracy of the nature described by the Deputy. If the Deputy has any grounds for believing that there may be such a conspiracy, he should bring the matter to the attention of the Director of Consumer Affairs and Fair Trade, who is responsible for the investigation of complaints into unfair or restrictive practices in regard to the supply and distribution of goods or the provision of services.
Is the Minister aware that it appears restrictive practices are being pursued between some hire purchase companies and some garages? Sums of between £300 and £400 seem to change hands just to ensure that the business is kept between the two. Obviously the motoring public will be penalised because they will have to pay for it. I am a little disappointed that the Minister does not have inspectors who will check this because it might be quite hard to pinpoint exactly where this is happening. However, it has been brought to my attention by a number of people and I had hoped that the Minister would employ an inspector or inspectors because, if it is as widespread as I am led to believe, it is quite a problem.
The Deputy's question relates to conspiracy and I am not aware of any evidence of conspiracy. I am advised that there are cases where it is believed that some motor car dealers are being given money by lending agencies in order to put business their way. If that is happening I would regard it as an undesirable practice but it is not illegal and certainly does not amount to a conspiracy. The unfortunate part is that it is the purchaser of the vehicle who takes on the hire purchase, leasing or other arrangements, who pays for it in the long run. For that reason I regard it as undesirable but it is not — as termed in the Deputy's question — a conspiracy and it is not, on the face of it, illegal. I should like to see full disclosure of this fact to the people concerned so that they could shop around for better terms where a payment of this kind is not being made.
Surely there is an element of most unfair trading in it in the sense that other companies are unable to penetrate the market because they are being kept out? Surely this comes within the ambit of the Fair Trade Commission? Given the importance of this matter I had hoped that the Minister would be in a position to test the waters——
This is repetition.
——because it is a very serious problem. I ask the Minister to investigate the matter on the basis of what I said.
No company is necessarily being kept out because, in the last resort, the purchaser or the lessee of the vehicle can dictate where they will get the finance. He can insist on some other company being brought in and, if it is a company which do not make this form of undesirable payment to the dealer concerned, the customer is not subject to the additional cost which would be the case in the instance the Deputy gives. It would not be possible for a car dealer to prevent a customer from getting his finance from another source if he so desires.
