Tuesday, 30th September 2008

A report in The Daily Telegraph, headed "EU plans add to financial burden of UK motorist", reveals a particularly vicious example of how unelected bureaucrats in Brussels will jack up the cost of motoring for British drivers.

And, as is often the case with EU legislation, the less well paid and those who cannot afford to change to a newer car will be hit hardest.

The intention of the EU is to do away with an arrangement which allows motorists to have their vehicle repairs and servicing done by independent garages. As a result, drivers will be force to use the more expensive maker' dealership garages.

The arrangement now under threat is known as the "Block Exemption". In force since 2002, it obliges the motor industry to supply the parts – and, more importantly, computerised information – to the smaller independent garages. Without it they would be unable to repair and service cars.

So if the Block Exemption goes some 20,000 independent garages, which charge average hourly rates some 40% below those of their main dealer counterparts (typically £55.63 compared to £94.70), would struggle to survive. And once the independent garages have gone the main dealerships will be free more or less to charge what they like.

How can such "consumer unfriendly" legislation like this come about?

The EU and big business are two of a piece, so despite what the media and politicians tell you, the EU is no friend of the individual or the small trader.

Most of the major motor manufacturers are losing money hand over fist so one can assume that they have suggested legislation of this kind to Brussels in a bid to increase their profitability. Although Brussels will go through the motion of a "consultation with the industry", the in-built bias in the legislation against small and independent garages is essentially a done deal. "Safeguards" negotiated by trade bodies to protect smaller garages are likely to prove worthless.

You might wonder why your elected representatives at Westminster aren't leaping to the defence of small businesses and of the millions of consumers whose motoring costs will sky-rocket. The answer is that in the case of that three quarters of our laws that come direct from Brussels, the only practical course of action open to our MPs is to roll over and simply rubber-stamp it.

Back to Leading Articles