HC Deb 13 March 1968 vol 760 cc1361-2
22. Mr. Ridsdale

asked the President of the Board of Trade, in view of the recent big, mergers in industry, what steps he is taking to increase the power of the Monopolies Commission to control takeover bids and mergers.

Mr. Crosland

I consider that my present powers, both to refer mergers to the Monopolies Commission and to act on their conclusions, are adequate.

Mr. Ridsdale

Surely our present monopolies legislation does not protect the individual in this country nearly as much as the anti-trust laws in the United States? Is not the right hon. Gentleman aware of the growing concern of many people in the country about the concentration of power in the hands of a few individuals either in the State or in industry?

Mr. Crosland

A lot of people with knowledge of the American situation would have grave doubts about what the hon. Gentleman says in the first part of his supplementary question about how effective American anti-trust legislation is. On the second part, this is not fundamentally a problem of power. The Government have the power which they need. To put it crudely, both political parties and industry are slightly schizophrenic about this. On the one hand, we want mergers and rationalisation in many industries. On the other hand, we have our traditional obligation to protect the consumer.

Mr. Sheldon

Can my right hon. Friend say when he expects to be in a position to announce the action he intends to take following the Report on manmade fibres by the Monopolies Commission?

Mr. Crosland

I have already made a statement about this matter in which I said that we are setting up a tariff inquiry of the kind proposed by the Monopolies Commission. As to its other recommendations, we propose at once to start discussing the possible outcome with Courtaulds.

Sir K. Joseph

Does the right hon. Gentleman mean by his first reply to this Question that he regards acceptance of some of the recommendations of the Monopolies Commission on the manmade fibres theme as being outside his present powers and that he does not mind their being outside his powers? In other words, is he not following up the recommendation of the Monopolies Commission that Courtaulds, in this case, should not carry its purchasing any further in certain sectors of the textile industry?

Mr. Crosland

No; I am not conscious that what I said could have given rise to that interpretation. What I have said, and what I repeat, is that we are discussing the recommendations with Courtaulds, but in the light of the Government's declared policy to encourage rationalisation of the textile industry.