INTERNET CAR sales company Carzone has written to its Northern Irish motor dealer clients, cancelling their business and declining to publish advertisements from them in future.
In a letter dated September 17th and seen by The Irish Times, the company wrote to dealers in the North telling them of "adjustments" to the Carzone dealer database to reflect the site being "for advertisers in the Republic of Ireland only".
Accordingly, the letter said, current advertisements would no longer be published and the company would be "ceasing" their "subscriptions" from October 21st.
According to Trader Media Group, which operates Carzone, the decision to refuse advertisements from Northern Ireland on the website was taken because it was always the intention that the "brand" would specifically relate to cars which are put up for sale by individuals and dealers in the Republic.
TMG's regional managing director for Ireland, John OConnell, said Carzone also wanted to block access to its sites by "rogue, side of the road dealers" who may not pay the additional VRT rates that apply in the Republic. O'Connell said "about half" of the 1,160 dealers signed up to Carzone were members of the Society of the Irish Motor Industry (SIMI). SIMI has been running a campaign against illegally imported vehicles from Britain and Northern Ireland, and its director, Alan Nolan, acknowledged the organisation has complained to TMG about rogue traders.
However, O'Connell insisted the SIMI complaint "had absolutely nothing got to do with it whatsoever" and maintained the decision to turn away advertising from the North was the company's own initiative.
He added that legitimate traders in Northern Ireland had the opportunity to use Carzone's sister website, Autotrader, which would be revamped later this year and would be a platform for all types of vehicles across the island of Ireland.
O'Connell also said if legitimate dealers in the North wanted to open a business in the Republic, or enter into a business arrangement with a motor dealer in the Republic, Carzone would do business with them again. Charles Hurst, Northern Ireland's largest retail motor group and part of the UK group of the same name, has an office in Dublin which is open two days a week and at other times by appointment.
Ian Sinnamon, of Charles Hurst, said the business had sold a lot of specialist cars in the Republic through Carzone. "They told us what they needed to maintain our business which was essentially an address in the South and we were able to comply with that," he said.
The move has upset a number of legitimate dealers in Northern Ireland who said they had nothing against moves to clear out rogue traders, but who resented being banned along with the rogues.
Dean Corey, of Oliver Corey Garages of Cookstown Co Tyrone, one of the businesses whose advertising was refused by Carzone, said his firm had provided a one-stop-shop for customers as far south as Cork and Kerry, and would arrange with the Republic's Revenue Commissioners to pay all VRT and secure a new registration on behalf of customers.
"There was absolutely nothing illegal. Car prices are lower in Northern Ireland, and sterling has fallen against the euro, making them even more attractive," he said.
A spokeswoman for the European Commission offices in Dublin said the issue would be examined by the commission in the light of EU rules on the availability of cross-border services.
