HC Deb 25 April 1961 vol 639 cc214-5
15. Mrs. Slater

asked the President of the Board of Trade if he is aware that tenders received by local authorities for cement supplied by members of the Cement Makers Federation are often identical; and if, in view of this evidence of monopoly conditions and in view of the completion of consideration of agreements relating to cement prices by the Restrictive Practices Court, he will now refer this industry to the Monopolies Commission for examination.

Mr. N. Macpherson

My right hon. Friend is aware that tenders for cement are usually identical, no doubt as a result of the Cement Makers' Federation Agreement. This Agreement has recently been found by the Restrictive Practices Court to be consistent with the public interest. Agreements subject to the jurisdiction of that Court are outside the purview of the Monopolies Commission.

Mrs. Slater

Does not that kind of Answer make nonsense of the whole question of monopoly? Is it not obvious that in one case the answer is that nothing can be done because there is not identical tendering, and that in this case, when there is, the answer is that it is consistent with the law and is, therefore, in the public interest? Does not the hon. Member agree that every local authority—to whom the Government make grants—is affected by this kind of ring?

Mr. Macpherson

There are two distinct cases. One is the monopoly where there is one person involved. The other is where several persons are involved and where there is an agreement among them. The Court found that the agreement resulted in cement prices being fixed at a reasonable level and that the public interest was, therefore, in no way damaged.

Mrs. Slater

Does not the hon. Member realise that that is in absolute contradiction to the argument which hon. Members opposite continually put to us when they say that we must have competition? Is not this a case in which there is absolutely no competition because there is an agreement to have none?

Mr. Macpherson

I think that the hon. Lady will recognise that price competition is not the only form of competition.