Volkswagen: Emissions

Baroness Hayter of Kentish Town Excerpts

Tuesday 19th January 2016 Lords Chamber

Asked by

[Baroness Hayter of Kentish Town]

To ask Her Majesty’s Government what assessment they have made of the decision by Volkswagen not to pay compensation to United Kingdom motorists who bought cars that were fitted with emissions-detecting software.

[Viscount Younger of Leckie (Con)]

My Lords, the Government’s view is that Volkswagen could be liable to compensate consumers for any actual losses they suffer. We are aware of Volkswagen’s statement that consumers are unlikely to suffer losses but it is too soon to say whether this is correct. The Competition and Markets Authority has not opened a formal investigation but is continuing to assess whether there is evidence of consumer harm, while liaising with government and other agencies, nationally and internationally.

[Baroness Hayter of Kentish Town (Lab)]

I thank the Minister for that Answer, which at least acknowledges that British Volkswagen drivers have been well let down. They bought what they thought, and for good reasons, was a low-emissions car only to find that Volkswagen had cheated them. Nearly 1 million cars will need to be recalled but their resale value will then go down, yet Volkswagen is refusing to compensate UK owners either for the inconvenience of taking their car back or for the loss of value. Can the Minister tell the House whether he considers that this decision is in line with the new Consumer Rights Act, passed in this House last year? Why will the Government not choose to explain to Volkswagen clearly that misleading purchases should lead to compensation?

[Viscount Younger of Leckie]

My Lords, the Government take the unacceptable actions of Volkswagen extremely seriously. Our priority is to protect the public as we go through the process of investigating what went wrong and establishing what we can do to stop it happening again in the future. Regarding the noble Baroness’s Question, there is no evidence that consumer rights have been breached but if any have, we have legislation in place at the moment in the Consumer Rights Act and the Sale of Goods Act.