53. Dr. Johnsonasked the President of the Board of Trade whether he is aware that the provisions of Part II of the Restrictive Trade Practices Act, 1956, are such as to encourage, rather than to diminish, the tendency to form monopolies; and if he will take this consideration into account in the study he is making of this part of the Act.
§ The President of the Board of Trade (Mr. Reginald Maudling)The extent to which the provisions of Part II of the Restrictive Trade Practices Act may encourage the formation of monopolies is a subject upon which opinions appear to differ. I can, however, assure the House that the effect of resale price maintenance on the structure of industry and trade will not be neglected in any studies which are made.
Dr. JohnsonIs my right hon. Friend aware that the obvious way of circumventing the provisions about collective resale price maintenance is to form an inter-connected body corporate under the further provisions of Part II of the Act? Will he inquire to what extent this is responsible for various combinations which are being formed in industry, including take-over bids?
§ Mr. MaudlingI do not think that that is quite the way things occur, but I will certainly look into the point.
§ Mr. OramAs the extent to which monopolies are being increased in this way is an important matter of opinion, would it not be useful to have the opinion of the Monopolies Commission about it? Will the right hon. Gentleman consider referring this matter to the Monopolies Commission?
§ Mr. MaudlingAs I think the House is aware, I am at the moment studying the operation of this part of the Act. I think that the best thing for us to do at the moment is to continue with that study.