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Assisted Areas Map
Mr. Redwood: To ask the Secretary of State for Trade and Industry what is the minimum size of area required for inclusion in a regional aid map. [116594]
Mr. Byers [holding answer 28 March 2000]: Under the Commission guidelines, areas must have a minimum population of 100,000.
Mr. Redwood: To ask the Secretary of State for Trade and Industry if he has had a reply from the European Commission about the regional aid map he has sent it. [116593]
Mr. Byers [holding answer 28 March 2000]: Yes.
Mr. Redwood: To ask the Secretary of State for Trade and Industry what geographical units have been used for selecting the areas on the new regional aid map. [116596]
Mr. Byers [holding answer 28 March 2000]: Our proposals for the new Assisted Areas map are based on an aggregation of wards.
Mr. Kilfoyle: To ask the Secretary of State for Trade and Industry what is the current state of the discussions with the European Commission on the new Assisted Areas Map. [118734]
Mr. Caborn: The Government's proposals for new Assisted Areas were published in the booklet, "The Government's Proposals for New Assisted Areas", on 15 July 1999. A copy of the proposals was placed in the Library. The proposals were submitted to the European Commission for approval as required by Community law.
The European Commission have informed us that the proposals published in July cannot be accepted. They have stated that the proposals, as drafted, would give the United Kingdom an unfair advantage against other member states. The Commission have further stated that if revised proposals are not submitted, they will begin a procedure under Article 88(2) of the EC Treaty. Such a procedure could delay agreement on the new Assisted Areas for up to six months.
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In light of this situation and the damage that would be caused by an extended delay in the approval of the new Assisted Areas, the Government intend to submit revised proposals to meet the Commission's concerns. The amendments to the July proposals are being published today in the booklet "Amendments to the Government's Proposals for New Assisted Areas". A copy of the booklet is being distributed to each Member and a copy will be placed in the Library. There will be a three week consultation period on the amendments.
Mobile Phones
Joan Ruddock: To ask the Secretary of State for Trade and Industry what assessment he has made of the Consumers Association findings on the radiation risks of hands-free mobile phone connections and shields; and if he will make a statement. [118009]
Ms Hewitt [holding answer 6 April 2000]: The findings of the Consumers Association will be assessed by the Independent Expert Group on Mobile Phones which is expected to report in May. The Department has also passed to the Expert Group independent reports of measurements it had undertaken of shielding devices.
The Department has not undertaken independent testing of hands-free devices. I have accordingly requested that further independent testing of these devices be undertaken. The results of the tests will be published.
Small Firms Loan Guarantee Scheme
Mr. Barnes: To ask the Secretary of State for Trade and Industry how many applications have been made to the Small Firms Loan Guarantee Scheme; and how many of these applications were successful. [117875]
Ms Hewitt: Although the final figures for the financial year 1999-2000 are not yet available, the number of new applications for guarantees received by the DTI from approved lenders is estimated at 4,496, of which an estimated 4,291 will have resulted in guaranteed loans. Since the Scheme started in June 1981 over 71,000 loans have been guaranteed. Historic data on the total number of applications received are not available.
The Department records only applications received from approved lenders where the lender is willing to lend. No information is available on the number of business proposals rejected by lenders on commercial grounds.
BNFL
Mr. Jack: To ask the Secretary of State for Trade and Industry what objectives he has set for the new senior management of BNFL; if he will make a statement on his plans to monitor its fulfillment of the objectives on each of its operating sites; and if he will make a statement. [117631]
Mrs. Liddell: As shareholder, we have made clear to the new Chairman and Chief Executive that substantial changes are needed in the way in which BNFL manages and runs its business. The Chairman is conducting a fundamental review of management and the Chief Executive is looking at the company with a fresh perspective. Our joint aim is to ensure that the company is able to meet the very real challenges it faces with its customers, the regulators, and others, and can emerge
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strengthened and able to play its role as a major global nuclear company. We are determined to build on the relationship that has been developed with the company during the PPP process. We will be considering with them their new Corporate Plan on which they are currently working and will ensure that the performance targets set for the company continue to be rigorous, demanding and regularly monitored.
Motor Industry
Mr. Ian Stewart: To ask the Secretary of State for Trade and Industry when he intends to publish the Competition Commission report on the supply of new motor cars within the United Kingdom. [118704]
Mr. Byers: I have published the report and my response today. I have announced new proposals to bring more competition to the supply of new cars and so help reduce prices.
The Competition Commission found that prices in the UK have been between 10-12 per cent. higher than in similar countries in Europe. This is despite the fact that two-thirds of the cars sold in the UK are imported. They conclude that private car buyers are paying about 10 per cent. too much--or £1,100--for the average car, after taking account of discounts, trade-ins and finance deals.
The Director General of Fair Trading estimates that the annual cost to private car purchasers could be around £1 billion a year as a result of the present system.
In my view the findings of the Competition Commission report cannot be ignored. They represent a clear and unambiguous call for change which requires a positive response.
For many private buyers, a car is the second most expensive purchase of their lives. This report confirms what many people have thought was the case--that in Britain we are paying over the odds for new cars. The reason for this is that the market is not operating as competitively as it should.
I will be introducing measures to bring about greater competition in the supply and selling of new cars which should mean lower prices and increased sales. These measures should restore consumer confidence and bring certainty to the car market.
The Competition Commission has identified a number of ways in which this market fails to function properly. It recommends substantial changes to the distribution of new cars--particularly in the relationship between manufacturers and dealers.
To make the market more competitive, I am taking the immediate steps recommended by the Competition Commission and the Director General of Fair Trading. As the Consumers' Association said in its evidence to the Competition Commission, steps such as insisting dealers are offered the same bulk discounts as fleet customers should make this market function more fairly and put downward pressure on prices.
These immediate remedies will be imposed by Order under the Fair Trading Act 1973. I have published a notice of this order today. By law interested parties must have
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an opportunity to comment on these proposals. Representations are invited by 19 May 2000, and I intend to make the Order within two months of today.
- Requiring suppliers to offer dealers who buy cars outright equivalent terms, including volume discounts, to those offered to fleet buyers.
- Requiring suppliers to provide their dealers with regular statements of terms they are prepared to offer which reflect the terms given to fleet customers.
Dealers who buy a large quantity of new cars outright will therefore be able to benefit from the sort of volume discounts currently enjoyed by fleet customers and pass on the benefits to customers.
- Prohibiting suppliers from discriminating in their dealings with contract hire companies by giving less attractive discounts if the end-user is not a fleet customer.
- Prohibiting suppliers from imposing contract terms on dealers that prevent or inhibit dealers from advertising prices at which they are willing to sell.
- Prohibiting suppliers from refusing to supply on the grounds of the price at which a dealer advertises it is willing to sell.
- Suppliers will be prohibited from imposing conditions or targets on dealers in respect of the number of cars a dealer registers during a certain period, or giving a dealer an advantage which is dependent on the number of cars the dealer registers during a certain period.
- Requiring suppliers to publish information on a regular basis concerning the number of cars they have pre-registered.
The Competition Commission also makes a number of recommendations for more fundamental change which relate to practices permitted by the European Union's Car Block Exemption rules. I believe these are important changes for the longer term in altering the structure of the market. We are discussing these issues with the European Commission now that the report is published.
Although the Block Exemption formally runs until September 2002, our discussions with the European Commission could bring about changes in the UK before then.
However, owing to the complicated legal and other factors that surround this issue, a point recognised by the Competition Commission, I expect it to take at least a year to resolve.
I will also be pressing the European Commission to enforce the existing Block Exemption rules vigorously to ensure that dealers are free to import new cars from dealers in the manufacturer's franchised network in other EC member states, and that they will not be disadvantaged if they do so and that private buyers are not obstructed if they wish to buy abroad for import into the UK.
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