HC Deb 05 June 1986 vol 98 cc615-6W
Mr. Hanley

asked the Secretary of State for Trade and Industry what plans he has to review competition policy; and if he will make a statement.

Mr. Channon

The Government believe that in general existing competition law has operated effectively and served the economy well. However, mergers policy has attracted attention in recent months, particularly in the light of the present high level of merger activity. In addition, the restrictive trade practices legislation has now been in operation for 30 years, and it has been criticised on a number of grounds, such as its inflexibility and its limited effectiveness in controlling seriously anti-competitive agreements between firms. I therefore believe it would now be right to undertake a review of these areas. The review will investigate both the scope for changes in policy under existing legislation and the desirability of changes in the law.

I am anxious that the review should be open to wide public debate and should benefit from all the expert knowledge available, whether inside or outside Government. I therefore intend to invite a number of outside experts to act as consultants on particular issues. In addition, I invite all interested organisations and individuals to contribute their view in writing, in the first instance no later than the end of July.

I shall keep the House informed as conclusions are reached.