MOTORISTS in Bolton have long complained about the sky-high cost of new cars in "rip-off Britain" compared with prices on the continent.

But measures announced last week by the European Commission should soon put consumers back in the driving seat and bring prices down.

A big shake-up in the car market is long overdue. Taking advantage of a special opt-out in EU competition laws, known as the "block exemption", manufacturers have forced British car buyers to pay through the nose. Survey after survey has confirmed that showroom prices here can be as much as 50 per cent higher than in the cheapest EU country.

That is why some enterprising British consumers have decided to play the car giants at their own game. Taking advantage of the European Single Market, they have travelled across to continental showrooms to buy vehicles at rock bottom prices, saving themselves thousands of pounds. But it has not all been plain sailing.

Manufacturers have often made it difficult to get right-hand drive models through continental dealerships, despite the fact that many vehicles sold in Britain roll off continental production lines. The European Commission has recently tried to get to grips with these dubious practices by handing some manufacturers hefty fines for breaching EU Single Market laws.

The motor industry's current "block exemption" expires this September. Despite protests from the car lobby, the Commission last week unveiled far-reaching plans to liberalise the European car market and give consumers, especially in Britain, a better deal. Crucially, the proposals will end manufacturers' ability to rigidly control the distribution, price and servicing of their vehicles.

Dealers will be able to sell different makes of new cars under one roof, whereas at present, they are restricted to just one manufacturer. They will also be free to set up showrooms in other EU countries or sell the vehicles on to other retail outlets, such as supermarket chains and internet operators.

In another ground-breaking move, the Commission plan to remove the iron grip the car giants now hold over vehicle servicing and the supply of spare parts. Authorised independent repairers will be given access to the technical information, tools, equipment and training they need to carry out the work. This should bring down artificially high servicing costs for cars still under warranty.

After a short consultation period, the new regime is due to come into force on October 1. Manufacturers will then be given a one-year transitional period to adapt to the new regulations.

This marks the dawn of a new era for the British car buying public. It puts consumers back into pole position and sends out a clear signal that the European Single Market is about competitiveness and low prices.