§ 22. Mr. Beswickasked the Minister of Fuel and Power if he will consider the appointment of a new and independent body to advise him as to what constitutes a fair freight charge for petroleum products for the purpose of fixing the price of pool grade petrol.
§ Mr. Geoffrey LloydNo, Sir.
§ Mr. BeswickAs these tanker companies are controlled by the oil companies—or the tankers are at least dependent upon them for their business—and as the awards of the tanker brokers have virtually controlled the price of oil in recent years, would it not be reasonable to expect a really independent body to make a recommendation as to freight rates?
§ Mr. LloydI do not think that the hon. Gentleman is quite fair in his criticism of his right hon. Friend, who made this arrangement about Christmas time, 1950. The panel of London tanker brokers is an expert body whose awards are accepted in international markets.
§ Mr. BeswickWhy does the right hon. Gentleman go about the country saying that he can do better than the late Government and then, when he gets into power, say that he cannot do anything because of the actions of the previous Government?
§ Mr. LloydWe are impartial in this matter. In this case we feel that his right hon. Friend did a good job.
§ 23. Mr. Beswickasked the Minister of Fuel and Power what steps he is taking to ensure that the premium grade petrol, which is to be on sale in February, 1953, without price regulation, is sold in free competition between the major oil companies to the consumers' advantage.
§ Mr. Geoffrey LloydPremium grades are likely to be available in adequate quantities, and the public will have the choice of a variety of brands. No special measures will, therefore, be required to ensure free competition.
§ Mr. BeswickWhile it is true that the public will have a choice among various brands—under any brand they will get very much the same commodity—and as in any case the selling points have already been allocated among the oil companies and the price has already been fixed, how can the right hon. Gentleman possibly say that there will be free competition?
§ Mr. LloydThis is not at all fair. I am not aware that the price has already been fixed to that extent, or that the types and qualities have been fixed, because these can be varied by the companies under the circumstances of free competition as the needs of the market dictate. Nor does the fact that certain garages have become connected with certain companies inhibit in any way members of the public going to one set of garages and using the products of one company, or to another, as they choose.
§ Mr. BeswickThe right hon. Gentleman knows far more about this business than did some of his predecessors. Does 1385 he not know that although it is possible to go to different garages, the fixing of garages as between the oil companies has been decided by the oil companies themselves? Is the Minister not aware that the major oil companies decided among themselves which garages should be invited to register with them for the sale of particular brands of petrol? Will he not have this matter thoroughly investigated by the Monopolies Commission?
§ Mr. LloydAny suggestion that free competition among the oil companies is hampered by restrictive practices is a matter for the President of the Board of Trade.
§ Mr. P. RobertsIs it not a fact that there is keen competition among oil companies for sites for the sale of petrol?
§ Mr. LloydYes, Sir. I think that after all these years in which they have been stopped from competing there will be quite an outburst of free competition.