HC Deb 21 December 1961 vol 651 cc1546-8
16. Mr. Marsh

asked the President of the Board of Trade, in view of the number of industries involved, the effect on the national economy, and the monopoly involved, if he will immediately refer the merger between Imperial Chemical Industries and Courtaulds to the Monopolies Commission.

19. Mr. Jay

asked the President of the Board of Trade if he will refer to the Monopolies Commission the merger between Imperial Chemical Industries and Courtaulds, in view of the increased danger of monopoly involved.

Mr. Erroll

I have no power to refer proposals for a merger to the Monopolies Commission. Should the merger, if it takes place, give rise to conditions in which I considered that there were grounds for referring to the Commission the supply of any of the goods affected, I would of course do so.

Mr. Marsh

In view of the enormous and unprecedented range of industries involved in this prospective or potential merger, cannot the right hon. Gentleman give an undertaking that he will use his influence to try to prevent it taking place until he has had a full inquiry into its possible effects? If this enormous concentration of economic and commercial power is necessary or, perhaps, inevitable, would not the right hon. Gentleman make it quite clear that if such a merger did take place the nation, in an effort to control its own destiny, would have to have public control of those industries?

Mr. Erroll

The answer to all those questions is "No, Sir".

Mr. Jay

In view of the huge aggregation of industrial power involved and the monopoly likely to be created in practically all synthetic fibres, and some other products, does not the right hon. Gentleman really think that the merits of the case, from the point of view of the public interest, should be argued before some sort of public tribunal before an operation of this size goes forward?

Mr. Erroll

No. I do not agree with that at all.

Mr. Walker

Could my right hon. Friend confirm that it would be wrong for firms contemplating mergers which would create a monopoly situation to assume that if we entered the Common Market they would not come wider the existing restrictive practices and monopolies legislation?

Mr. Erroll

I think that that is a matter which would have to be carefully considered.

Mr. Rhodes

Is the right hon. Gentleman aware that the monopolistic dangers here are infinitestimal compared with the tremendous advantage in the competitive field if these two organisations came together, because of the economies that would be involved and because of the size of the undertaking, which would be able to protect raw material prices for textile manufactures in this country?

Mr. Ellis Smith

Better this than the Americans taking it over.

Mr. Erroll

I am grateful to the hon. Gentleman the Member for Ashton-under-Lyne (Mr. Rhodes) for having pointed to some of the advantages of the proposed merger. Other hon. Gentlemen have pointed to some of the disadvantages. It is because I think there are prospective advantages as well as prospective possible disadvantages that I have answered in the way I have.

Mr. Callaghan

The right hon. Gentleman has given singularly little information about the Government's view on this. May I put it to him that, as there are these differences of views about the advantages and disadvantages, there must be a weakness in our legislation at the moment if a merger can take place which involves, I believe, 140,000 employees and nearly £1,000 million capital without the public interest in the matter being declared at any time? While there may be a great deal to be said on both sides, should it not be possible for the Government to indicate, in view of the importance of this to the national economy, that we will have a considered view on the matter so that the nation can make up its mind?

Mr. Erroll

I thought that it was clear that the people who are proposing the merger would have the interests of the companies in mind and, naturally, the interests of their staff. The public interest is best served by their continuing to sell their products as cheaply and efficiently as possible, and only in that way can they remain a profitable undertaking.

Mr. Jay

While, of course, it is the business of the heads of these companies to consider the interests of their own shareholders and staff, and while there are advantages and disadvantages involved, does not the right hon. Gentleman realise that his own colleagues have argued earlier this week that the public interest should be considered by wage tribunals in quite minor wage negotiations? Is it the view of the Government that that should happen in wage and salary negotiations, yet a huge industrial merger of this kind should not even be considered from the point of view of the public interest?