Monopolies Commission

HC Deb 03 February 1955 vol 536 cc1242-8

5. Mr. Dodds

asked the President of the Board of Trade how many reports have, so far, been received by him from the Monopolies Commission; and if he will make a statement giving details showing what action he has taken designed to reduce prices or improve quality resulting from the reports.

20. Mr. Chetwynd

asked the President of the Board of Trade whether he will publish a complete list of all subjects referred to the Monopolies Commission, showing the date submitted and, where appropriate, the date reported to him, together with the main recommendations in each case and the action taken on these recommendations.

Mr. P. Thorneycroft

As this information is lengthy, I will circulate a full statement in the OFFICIAL REPORT next Monday.

Mr. Dodds

Whatever is in that statement, is it not crystal-clear to the right hon. Gentleman that the Monopolies Commission works too slowly, that it is not strong enough, and that the right hon. Gentleman has sat on the reports much too long? Can he not promise something better for the future, or is he satisfied with the present situation?

Mr. Thorneycroft

The Question asked for a report on the work of the Monopolies Commission, which was very active under the previous Government, as it is under this one, and I think that this will be more crystal-clear to the hon. Gentleman when he has seen the lengthy account of the work that has been done and the action taken.

Mr. Chetwynd

Is not the important thing the action taken, and will that not show complete paralysis on the part of the present Government?

Mr. Thorneycroft

I think that it would have been better if the hon. Gentleman had waited to see the list of the action taken before making that comment.

Mr. H. Wilson

As the information will presumably show that 19 cases have been referred to the Monopolies Commission, that nine reports have been received, and that the Government have taken statutory action on only one of them, will the right hon. Gentleman recall the advice given to him, in Amendments proposed from this side of the House, during consideration of the last Monopolies Act that he should strengthen the Commission, have more vice-chairmen and more members?

Mr. Thorneycroft

It was not until I was appointed President of the Board of Trade that the Commission was strengthened. During the whole of the time that the right hon. Gentleman was in charge, the Monopolies Commission was too weak and was undermanned, and I took the opportunity of introducing legislation, which was passed by this House, strengthening the Commission. So far as action is concerned, the right hon. Gentleman is quite wrong; action has been taken on all except one report.

Mr. Fletcher-Cooke

Is it not right to say that statutory action was unnecessary on the others because the trades concerned agreed to the recommendations, and agreed to abide by them?

Mr. Thorneycroft

Certainly, Sir. There is no necessity to have statutory action when we can get agreement and the necessary action.

9. Mr. Edelman

asked the President of the Board of Trade what measures he is taking to defend small traders against the exactions, penalties and restraints of trade inflicted upon them by trade associations when they reduce their prices below the level arbitrarily established by such associations.

Mr. P. Thorneycroft

As I told the House last week, I have already taken action in this matter by the reference I have made to the Monopolies and Restrictive Practices Commission under Section 15 of the 1948 Act.

Mr. Edelman

In the meantime, is the right hon. Gentleman not aware that the motor industry in particular is bound hand and foot by rings and restrictions, and will he not seek to remove the harsh monopolistic controls that now fetter private enterprise?

Mr. Thorneycroft

If I may say so, I was two years ahead of the hon. Gentleman. I thought of this two years ago, and referred the whole question to the Monopolies Commission for a full report. It is a complex and controversial matter, and I am quite sure the House would be well advised to await that report before taking any action.

Mr. H. Wilson

Is the right hon. Gentleman aware that he is three and a half years behind the previous Government, and that after two years' experience of the Monopolies Commission we recognised that progress was too slow? We did not consider it necessary to have a special inquiry because there was sufficient evidence to justify our view that legislation was necessary to ban these practices.

Mr. Thorneycroft

Yes, but the right hon. Gentleman will recall that on his side there was not unanimity on the matter. The hon. Member for Ogmore (Mr. Padley), speaking with the full authority of the Shop, Distributive and Allied Workers Union on this question of retail price maintenance, said: Our union has had 50 years of bitter experience of 'Eastern bazaar' conditions in the distributive trades, low wages, sweated conditions, and we shall fight any attempt to make the present free-for-all scramble even worse.

10. Mr. Collins

asked the President of the Board of Trade if he is aware that all petrol companies in this country have increased the retail price of petrol by ½d. per gallon; that this unanimity of policy has been apparent in earlier price changes; and if he will refer the activities of the British oil companies to the Monopolies Commission.

22. Mr. Dodds

asked the President of the Board of Trade in view of the need for urgency what decision has been reached in considering referring the supply of petroleum products to the Monopolies Commission.

Mr. P. Thorneycroft

I have nothing to add to the answer which I gave to the hon. Member for Dartford (Mr. Dodds) on 27th January.

Mr. Collins

Is the Minister aware that his answer was really no answer at all? Is he further aware that the petrol companies are making trading profits in excess of £250 million a year? Does not he think that this increase is completely unjustified, and will he not, therefore, take some action in the matter?

Mr. Thorneycroft

I have said that I will consider this amongst other matters as suitable for reference to the Monopolies Commission, but that Commission is not a price-fixing organisation in any sense of the term.

Mr. Dodds

Will the right hon. Gentleman say, if he has not got much hope of the Monopolies Commission, whether he has not power to do something if he finds that the petrol companies are abusing their position, and will he not do something?

Mr. Thorneycroft

I may have power to do many things, but the power in these matters rests with the House of Commons. However, the House of Commons, in its wisdom, has set up a Monopolies Commission to investigate some of these difficult and complex matters carefully before any of us plunge into action.

Mr. Nabarro

Is my right hon. Friend aware that over a wide field the principal competitive fuel with oil is coal, and is he further aware that the nationalised coal industry has raised its prices arbitrarily, and as a monopoly, on no fewer that 21 occasions since the vesting date?

Mr. Thorneycroft

That is why I am anxious to keep out of the price-fixing field.

Mr. Dodds

Owing to the very unsatisfactory nature of that reply, I beg to give notice that I shall raise the matter on the Adjournment at the earliest opportunity.

26. Mr. Bottomley

asked the President of the Board of Trade how many additional deputy-chairmen of the Monopolies Commission were appointed in 1954.

Mr. P. Thorneycroft

None, Sir.

Mr. Bottomley

How is it possible for the President of the Board of Trade to say that the Government are anxious to speed up the work of the Monopolies Commission when they have not yet used the powers given to them by Parliament?

Mr. Thorneycroft

I find it quite easy. There is a full-time Chairman, and three of his colleagues give more than the usual part-time service. It would not speed up the work of the Commission at all to appoint three full-time deputy-chairmen. Indeed, it is of great advantage to have engaged in this work men who are in constant contact with outside events.

Mr. Bottomley

Why then did the President come to Parliament and ask for additional powers, if he had no intention of using them?

Mr. Thorneycroft

I said at the time that I asked for them that I would not use them unless I found that to be necessary.

Mr. Gaitskell

Is not one of the difficulties of the Commission that the part-time members find it very difficult to put in enough time to cope with the work of the Commission? Would the President not consider appointing more full-time members so that the work could be expedited?

Mr. Thorneycroft

I have given very careful consideration to this matter and I am satisfied that the present arrangements are the best we can get. If I had representations from the Monopolies Commission itself that it would be an advantage to it to have full-time deputy chairmen, I would certainly give them very urgent and anxious consideration.

29. Mr. Jay

asked the President of the Board of Trade when he expects to receive reports from the Monopolies Commission on the linoleum, hard-fibre cordage, electrical and allied machinery and plant industries, respectively.

Mr. P. Thorneycroft

These are amongst the reports which I expect to receive this year.

Mr. Jay

Were not almost all these cases referred to the Monopolies Commission as far back as October, 1953? Is not the fact that we have had no reports strong evidence that the President ought to appoint extra members to the Commission, as my right hon. Friend the Member for Leeds, South (Mr. Gaitskell) has suggested?

Mr. Thorneycroft

The appointment of extra members to the Commission would not shorten by one day the length of time which it takes to prepare a report. To have more members looking at a matter more casually would not shorten it. When I increased the number of members, it became possible to deal with more reports. That is a different matter.

Mr. Jay

Does not the right hon. Gentleman realise that what the public wants to see is a speed-up, and if he thinks that what we have suggested is not the right way, will he tell us what he is going to do?

Mr. Thorneycroft

I am perfectly satisfied that the way I have adopted is the right way. It is, in fact, the way which has been approved by both sides of the House of Commons after many debates on this subject, namely, that we should have full and fair investigations into these complex and controversial matters and then be in a position to judge after and not before we get the reports.

Mr. Robson Brown

Would the President bear in mind that there is very great public interest in these inquiries? Will he apply his mind to seeing how the investigations could be subdivided through the medium of sub-committees of the Monopolies Commission, so that these various industries at present under a cloud could either clear themselves or otherwise by the Commission making a favourable or adverse report within a reasonable period?

Mr. Thorneycroft

I am very glad that my hon. Friend has asked that question. I would emphasise that the work is already subdivided. That was the purpose of increasing the membership of the Commission—in order that it should be able to study more of these particular references at the same time. That is going on, and I am satisfied that it is the right way in which to approach the matter.

Mr. H. Wilson

If the President says that nothing can be done to speed up the work of the Commission, and he is not going to use the powers he obtained from Parliament in 1953, does it not all add to the case for general legislation banning individual malpractices throughout British industry? When the right hon. Gentleman quite unfairly quotes a speech of my hon. Friend the Member for Ogmore (Mr. Padley) in June, 1951, will he recognise that my hon. Friend and all hon. Members on this side of the House at that time supported the then Government's White Paper seeking general legislation.

Mr. Thorneycroft

I must say that if the right hon. Gentleman interprets the remarks of his hon. Friend as general support for a policy of the abolition of price maintenance, his is a different interpretation from mine.