I was notified of a website that seemed to indicate that small independent garages would be under threat from European Legislation.
So I wrote the following to Graham Watson MEP ( What a pity he was not joined by Kay Barnard in June).
Graham
Please have a look at this web site http://www.r2rc.co.uk/home/content/view/27/97/
If this correct it would potentially put Larkhall Garage (and many others) out of business. I have been using Larkhall Garage since 1985 when I moved to Bath and would like to be able to continue using them into the future.
many thanks
Paul
and got this reply back which is good news for small independent garages.
Dear Paul,
Thank you for your email of 25 July regarding the Block Exemption for Motor Vehicles (EU Regulation 1400/2002).
I should say in the first instance that in no way is the EU forcing independent garages to close through any removal of the above in 2010. An evaluation report recently adopted by the European Commission on the block exemption concluded that conditions for competition have improved in recent years on the markets for both new cars and repair and maintenance.
Independent repairers now have better access to technical information; and in fact this has been supported by EU legal enforcement in this regard. In 2007, the European Commission adopted four decisions that legally bound Daimler Chrysler, Toyota , General Motors and Fiat to commitments to provide technical information about car repairs to all independent garages in the EU.
These commitments were sought precisely because of concerns that inadequate access to the full range of technical information could drive independent repairers from the market and that the agreements between the carmakers and their authorised repairers would therefore infringe European Union treaty rules on restrictive business practices.
The report concludes that the general framework of the block exemption has had positive effects overall, and that provisions such as those obliging manufacturers to give independent repairers access to technical information have been effective. These provisions will in the future be superseded by rules in other EU policy areas, not least by a Regulation on vehicle emissions (0715/2007) which is spearheaded by government departments and ministers from EU governments including our own. Although these are all positive signals, I appreciate the concerns that people have, having met with many local garage owners at a recent forum. I can also understand that some of the Commission’s communications on this matter have not always been as clear as they could have been. Consequently, I wrote to the Commission in May in order to gain assurances that whatever changes are made to MVBER, independent garages would still enjoy the same level of protection as before. I have since received a reply, and attach copies for your perusal.
The response puts on the Parliamentary record the Commission’s commitment to ensuring that there is a level playing field when it comes to ensuring free access to tools, information and authorised repair networks. This clarification leaves little doubt that whatever changes are made to MVBER, the Commission will retain the power to protect independent garages and consumers as before.
Nonetheless, you can rest assured I shall continue to monitor the situation and endeavour to seek the best solution for small businesses and consumers.
Yours sincerely,Graham Watson MEP
Liberal Democrat Member of the European Parliament for South West England and Gibraltar
Parliamentary Question by Graham Watson (ALDE) to the Commission 19 May 2009 on Motor Vehicle Block Exemption Regulations
The European Commission is currently in the process of reformulating Regulation (EC) No 1400/2002 concerning Motor Vehicle Distribution and Servicing (MVBER).The Commission’s evaluation report concludes that although competition in the automotive industry has been stimulated to a degree, many provisions in the Block Exemption Regulations have proven ineffective, irrelevant or sometimes even counterproductive.
There lies an implicit message in Commission communications that many of the measures in MVBER will be scrapped, but that the overall goal of improving competition in the sector will be served by a patchwork of other legislation. Can the Commission therefore confirm that this will continue to provide the immediate and effective protection independent after-market operators require?
In the UK , there are more independent repairers than franchised dealers and they often charge half the hourly rate of franchised dealers, offering a local and affordable service. This not only provides a valuable service to consumers and the environment, but also accounts for thousands of jobs. Can the Commission confirm that whatever changes are made to MVBER, there will be clear legal protection for independent garages and repairers to access the tools, parts and information that they need to conduct repairs?
Answer given by Commissioner Kroes on behalf of the European Commission on 23 June [E-3664/2009]
The Commission would agree with the Honourable Member that independent garages provide motorists with a valuable, and often cheaper, alternative to the authorised networks, and that they also provide employment to large numbers of European citizens. As regards the ongoing review of Regulation 1400/2002 [1], any future competition framework for the motor vehicle sector must clearly ensure that the Commission can act when barriers are put in the way of independent repairers accessing tools, parts, and technical information.
One of the questions being analysed as part of the review of Regulation 1400/2002, in the light of the positive and negative impacts of the regulation identified in the Commission’s Evaluation Report of May 2008[2] is what is the most effective means of ensuring a level playing field between authorised and independent repairers, to the benefit of the European consumer.
The Commission’s determination to ensure that competition is not impeded to the detriment of independent repairers and consumers can be gauged by the formal decisions that it adopted in four cases in 2007 (Daimler Benz, Fiat, GM and Toyota)[3], with a view to ensuring that independent repairers have access to technical information. The Commission would like to assure the Honourable Member that any future competition framework replacing Regulation 1400/2002 will not affect the Commission’s ability or indeed willingness to take similarly robust action in the future.
[1] Commission Regulation (EC) No 1400/2002 of 31 July 2002 on the application of Article 81(3) of the Treaty to categories of vertical agreements and concerted practices in the motor vehicle sector, OJ L 203, 1.8.2002.
[2] See http://ec.europa.eu/competition/sectors/motor_vehicles/documents/evaluation_report_en.pdf
[3] See press release IP/07/1332 of 14/09/2007