HC Deb 05 November 1986 vol 103 cc947-9
8. Mr. Greenway

asked the Secretary of State for Trade and Industry how many takeover bids have been referred to the Monopolies and Mergers Commission in the past 12 months; with what result; and if he will make a statement.

Mr. Channon

In the 12 months to date, 14 acquisitions or proposed acquisitions have been referred to the Monopolies and Mergers Commission. Of these, four proposals were abandoned and the references laid aside. One proposal was found by the commission to operate against the public interest, three were found not to operate against the public interest and six investigations are still in progress.

Mr. Greenway

May I respectfully point out to the hon. Member for Brent, South (Mr. Pavitt) that the Ault and Wiborg paint company which he mentioned is in my constituency and not in Brent? He ought to know his own constituency a little better. However, I agree with much of what he said. Is my right hon. Friend aware that many of my constituents are under 90 days' notice while the proposed takeover by Hoechst or Bergers is being investigated? Does he not agree that this is unfair to both parties? I hope that he will refuse to allow that takeover to occur. Meanwhile, will he say whether the referral process could be speeded up, in the interests of all parties?

Mr. Channon

I note the alliance between the hon. Member for Brent, South (Mr. Pavitt) and my hon. Friend. I can assure my hon. Friend that I will expect to listen to the advice of the Director General of Fair Trading if this merger qualifies on assets or market share. I cannot anticipate the result of the director general's inquiries. My hon. Friend also asked about the delay in Monopolies and Mergers Commission procedures. I am certainly prepared to consider whether there are circumstances in which the commission might be asked to report in a shorter period. The current review will consider that.

Dr. Godman

The Director General of Fair Trading is examining a proposal to take over the British Sugar Corporation. Will the Secretary of State head off that takeover by the Italian company, Ferruzzi? Is he aware that that company seeks, not a monopoly of the British sugar market, but a monopoly of the European market? If it is successful, the interests of the producers in the African, Caribbean and Pacific cane sugar-producing countries will be severely harmed, and so will the interests of those employed in the United Kingdom's cane sugar refineries.

Mr. Channon

I note the hon. Gentleman's views. The proposed takeover of British Sugar by Tate and Lyle and Ferruzzi is being investigated by the Monopolies and Mergers Commission. The hon. Gentleman will understand that it would be quite inappropriate of me to comment at this stage or to anticipate the commission's recommendations.

Mr. Gale

Further to the answer given to the hon. Member for Workington (Mr. Campbell-Savours), and to set the record straight, will my right hon. Friend confirm that, following its successful defence of the Scottish and Newcastle takeover, during which Matthew Brown suggested that Scottish and Newcastle might wish to close one of its breweries, the first thing that the Matthew Brown management did was to close one of its breweries? Consequently, does my right hon. Friend agree that small is not necessarily secure? Does he further agree with the general principle that it is better to have a large domestic industry that is able to compete with European companies than a fragmented industry that cannot do so?

Mr. Channon

All the questions show that hon. Members have a keen interest in this topic. I shall await their views as to what, if any, changes should take place in our competition policy.

Mr. Heffer

Will the Secretary of State give an assurance that some time, somewhere, this Government will actually defend the interests of British industry?

Mr. Channon

With respect, that question is untypical of the hon. Gentleman, and most unfair.

Mr. Peter Bruinvels

I welcome the sterling work done by the Monopolies and Mergers Commission, but does my right hon. Friend realise that many of my constituents are particularly concerned about the delays in reaching decisions on the Plessey and Allied-Lyons cases? Will he confirm that there has been great concern about the cartel operated by some petrol companies? Is there not a case for the Monopolies and Mergers Commission to look into that?

Mr. Channon

The Director General of Fair Trading has looked at that latter point several times. I have already said that we shall try to find ways of speeding up such decisions, although I think that that will be difficult without further legislation. The GEC-Plessey matter was decided this summer, and I seem to remember that most of the House agreed with the decision reached.

Mr. Meadowcroft

Is the Secretary of State aware that today several redundancies have been announced at the Royal Ordnance factory in Leeds as a direct result of Vickers buying out its sole competitor? Would it not have been better if that takeover had been referred to the Monopolies and Mergers Commission?

Mr. Channon

I do not agree with the hon. Gentleman. I followed the recommendation given to me on that occasion by the Director General of Fair Trading, that there would be no detriment to competition. Consequently, I thought that it was unreasonable to refer the matter to the Monopolies and Mergers Commission.