HC Deb 06 December 1962 vol 668 cc1490-1
31. Mr. Jay

asked the President of the Board of Trade what consultations he had with the Monopolies Commission before deciding to release the British Oxygen Company from obligations as to its price and contract policy imposed as a result of recommendations by the Commission.

The President of the Board of Trade (Mr. F. J. Erroll)

None, Sir. The Commission's recommendations were based on inquiries made more than six years ago. I am not authorised under the 1948 Act to ask the Commission for advice now about changes which have taken place since the completion of its Report unless I make a new reference under that Act.

Mr. Jay

Is the President of the Board of Trade aware that, since he asked the British Oxygen Company for these assurances, its share of the market has fallen only from 98 per cent. to 95 per cent.? If the right hon. Gentleman really thinks that that is a good reason for releasing the company from its obligations, is not he making a mockery of his attitude to monopolies in this country?

Mr. Erroll

Not at all. The changes which I announced by means of an Answer to a Question by my hon. Friend the Member for Beckenham (Mr. Goodhart) show that no less than 80 per cent. of British Oxygen's customers are still protected by the undertakings previously given.

Mr. Webster

At a time when, by the Transport Act, the House has given the right to make free charging arrangements and privacy of charging to nationalised industries, is it not appropriate that the same facility should be given to private enterprise?

Mr. Erroll

Even more than that, I say to my hon. Friend that what I have been able to announce demonstrates the efficacy of the Monopolies Commission's work in this respect because, after the introduction of the undertakings which were adhered to by the British Oxygen Company, effective competition has emerged, and we can now see the effective degree of competitive enterprise in a field which was formerly monopolistic.

Mr. Jay

Does the right hon. Gentleman really say that a company which controls 95 per cent. of the market ought to be free to charge what prices it likes?

Mr. Erroll

The right hon. Gentleman, whose intelligence I appreciate, fails altogether to realise that the release from the undertakings applies only to the large consumers taking over 12,000 cubic feet per annum. Eighty per cent. of British Oxygen's customers are still protected by the undertakings to which the company still adheres. Competition now is effective in regard to the large customers, and that is where relaxation is most appropriate.