HC Deb 19 July 1960 vol 627 cc230-1
20. Mr. Gresham Cooke

asked the President of the Board of Trade whether he will refer the telephone equipment manufacturing industry to the Monopolies Commission.

Mr. J. Rodgers

My right hon. Friend will bear my hon. Friend's suggestion in mind when considering new references to the Monopolies Commission. Before considering such a reference, however, my right hon. Friend would have to be satisfied that the conditions to which the Act applies prevail in the industry.

Mr. Gresham Cooke

Will my hon. Friend seriously consider either referring this industry to the Monopolies Commission or referring the agreement to the Restrictive Trade Practices Court, because there seems to be a feeling that this electrical telephone manufacturers' ring of seven firms is producing goods worth £75 million a year and selling them all to one customer—namely, the Post Office—and that their agreement is of such a nature that it would normally be taken before the Restrictive Trade Practices Court?

Mr. Rodgers

We are, of course, aware of the facts which my hon. Friend has mentioned, but the conditions to which the Monopolies and Restrictive Practices Act applies prevail if at least one-third of the goods in question which are supplied in the United Kingdom or any substantial part thereof are supplied by or to any one person. There are eight parties to the agreement and it is doubtful whether any of them supplies as much as 30 per cent.

Mr. Ness Edwards

Is the Parliamentary Secretary not aware of the financial battle that is going on in the City these days to get into this 'monopoly? Is he not equally aware that the Post Office is in a stranglehold by this monopoly? Is he not further aware that this matter should be thoroughly investigated so that we might see whether we should take steps to end this arrangement and to give the Post Office a bit of freedom and the customer better value?

Mr. Rodgers

I am aware that Pye, Ltd., is attempting to buy control of the Telephone Manufacturing Company. The other part of the question which the right hon. Gentleman mentioned is a matter more for my right hon. Friend the Postmaster-General than for me.

Mr. Roy Jenkins

We want to be assured that either the Monopolies Commission or the Restrictive Practices Court is able to deal with this subject and that there is no danger of the matter slipping between the two, thus exposing a dangerous gap in the Government's legislation for dealing with restrictive practices. May we have that assurance?

Mr. Rodgers

There is no danger of that. We are considering——

Mr. Roy Jenkins

One or other of them?

Mr. Rodgers

Not necessarily one or the other, but the points that have been raised in question and answer today.

Mr. Ness Edwards

Is the hon. Gentleman not aware that a Government Department is being held to ransom in this matter? Here is a tightly bound monopoly. The Post Office is completely at its mercy and has some £60 million a year involved. Surely, this is an extraordinary case that should be referred to the Commission.

Mr. Rodgers

I cannot accept that the Post Office is being held to ransom.

Mr. Ness Edwards

Of course it is.

Mr. Rodgers

It is a matter for my right hon. Friend the Postmaster-General, who would take steps if he felt that that was so.