Dáil Éireann díospóireacht -
Wednesday, 26 Oct 1994

Vol. 446 No. 4

Written Answers. - Restrictive Practices in Motor Trade.

John Bruton

Ceist:

95 Mr. J. Bruton asked the Minister for Enterprise and Employment the action, if any, he will take to remove the restrictive practice operated by the motor manufacturers against multibrand dealerships, which denies Irish consumers the convenience of comparing new models in one showroom and adds to distribution costs and prices. [1370/94]

Minister for Enterprise and Employment (Mr. Quinn)

I take it that the Deputy is referring to the European Commission's draft decision to extend the block exemption granted to certain categories of motor vehicle distribution and servicing agreements under Article 85 (3) of the Treaty of Rome.

I understand that there will be a number of important changes to the original exemption which should lead to increased consumer benefits. These include allowing dealers to distribute and sell more than one make of vehicle, allowing dealers to obtain spare parts other than those of the manufacturer, allowing independent garage owners access to the technical knowledge required for repairing vehicles and allowing dealers to advertise outside their own sales territories.

The Competition Authority is also considering a category licence in respect of agreements notified in this sector. I understand that the Authority will await the final text of the Commission's block exemption before finalising its own work. Interested parties will have an opportunity to make submissions to the Authority when the draft category licence is published.