moved for leave to introduce Bill C-221, an act to amend the Competition Act (illegal trade practices).
Mr. Speaker, the bill would amend the Competition Act by creating an offence for manufacturers and distributors of motor vehicles and farm equipment to engage in certain marketing practices with their dealers. In most cases franchise agreements provide that a dealer shall not carry any other line or "dual" without the written permission of the manufacturer. In practice that permission is rarely forthcoming.
The consequences of this restrictive arrangement are that the dealer's investment in one line of motor vehicles or farm equipment may substantially exceed the investment actually required to efficiently supply the sales and servicing demands faced by a particular dealer in his or her market.
By allowing the dealer to offer one or more new lines of new motor vehicles or farm equipment I believe the bill would produce two positive results. First, the investment of the dealer would be utilized more efficiently and effectively and, second, the public in the dealer's market would be better served.
I urge all members to support the bill for the benefit of Canada's business community.
(Motions deemed adopted, bill read the first time and printed.)