§ 43. Mr. Jayasked the President of the Board of Trade whether he is aware that manufacturers of motor tyres are using the Restrictive Practices Act, 1956, to hold up the retail price of tyres; and what 887 action he proposes to take to follow up in this industry the former Chancellor of the Exchequer's appeal to manufacturers to lower prices.
§ Mr. ErrollI am informed that tyre manufacturers are availing themselves of Section 25 of the Restrictive Trade Practices Act, 1956. My right hon. Friend has no powers of control over the prices of tyres, but he would, of course, welcome any practicable reduction in prices.
§ Mr. JayAs the previous Chancellor of the Exchequer, before he finally got fed up with the Government, urged manufacturers to reduce their prices and as the tyre manufacturers are using the Act in order to hold prices up, do the Government think this satisfactory?
§ Mr. ErrollThe right hon. Member should remember that competition between manufacturers can play an important part in keeping prices down.
§ Mr. JayWill the Minister consult the Attorney-General as to whether the manufacturers in this industry are acting illegally under Section 24 of the Act, which is supposed to prohibit collective resale price maintenance?
§ Mr. ErrollI have no information that they are acting illegally.
§ Mr. UsborneIs it not a fact that the main tyre manufacturers are now at last wholly delighted with this Act because it has enabled them to maintain their prices much more easily than they could in the past?
§ Mr. ErrollThe Act makes specific provision for individual enforcement of resale price maintenance, and was passed by Parliament.