§ 24. Mr. Wadeasked the President of the Board of Trade whether he will institute an inquiry in order to investigate the economic consequences of the growing number of amalgamations in industry, and in particular the effect of such amalgamations on the survival of smaller firms.
§ Mr. J. RodgersNo, Sir. I see no reason to suppose that amalgamations between firms are having undesirable effects on the economy; and I do not think that freedom to amalgamate is harmful to small firms.
§ Mr. WadeIs the Minister aware that in a leading article in British Manufacture, the journal of the National Union of Manufacturers, it is stated that the 1407 present circumstances of manufacturing industry in this country are such that the independent survival of the smaller firm is becoming steadily less likely, and that the article continues:
The circumstances … are … of the Government's own making"?In view of that, would it not be helpful to have some statistical information on the subject of amalgamations generally to enable the House to assess the extent to which Government policy is affecting the future of the small firm?
§ Mr. RodgersFreedom to buy, sell and combine assets is important, we believe, to small firms, and is one of the ways in which they can grow. Amalgamations often lead to greater efficiency by securing economies of large-scale production. We do not think it is due to Government action that these amalgamations have taken place. I might point out that the question of take-over bids is being considered by the Jenkins Committee.
§ Mr. H. HyndIf there are so many advantages in amalgamations of firms, why are the Government so anxious to decentralise the railways?
§ Mr. RodgersThat is another question.