HC Deb 18 July 1973 vol 860 cc631-5

Lords Amendment: No. 23, after Clause 96, in page 70, line 41, at end insert new Clause A?— A. In section 6(8) of the Act of 1956 which contains a definition of 'trade association'), after the words 'or of persons represented by its members' there shall be inserted the words 'and which is not a society for the time being approved under section 6A of this Act'.

Sir G. Howe

I beg to move, That this House doth agree with the Lords in the said amendment.

Mr. Deputy Speaker

With this amendment it will be convenient to take Lords Amendment No. 24, in page 70, line 41, at end insert new Clause B-Wholesale co-operative societies.

Sir G. Howe

May I suggest that we also take the following Lords amendments:

No. 38, in Clause 108, page 79, line 38. leave out "the following provisions"and insert "subsections (2) to (5)".

No. 39, in page 80, line 6, at end insert and (c) it is not a society which is for the time being approved under section 6A of the Act of 1956".

No. 40, in page 81, line 6, at en insert— ( ) In relation to a society which is for the time being approved under section 6A of the Act of 1956, but which, in consequence of an order made under section 103 or section 104 of this Act, is a society to which the preceding provisions of this section would apply if it were not so approved, subsection (4) of that section (which confers power on the Secretary of State to withdrawn any such approval) shall have effect as if in that sub-section?—

  1. (a) any reference to an agreement which would have been subject to registration under Part I of the Act of 1956 if the approval had not been given included a reference to an agreement which would in those circumstances have been subject to such registration by virtue of the order, and
  2. (b) any reference to such a recommendation as is mentioned in section 6(7) of that Act included a reference to such a recommendation as is mentioned in subsection (3) or subsection (4) of this section."

No. 68, in Schedule 11, page 120, line 22, at end insert?— Restrictive Trade Practices Act 1968, s. 11 An agreement which?—

  1. (a) was made before the commencement of this Act by a society at a time when it was approved for the purposes of section II of the Act of 1968 (wholesale co-operative societies), and
  2. (b) by virtue of that approval was not subject to registration under Part I of the Act of 1956,
shall, notwithstanding the repeal of that section, not be subject to such registration.".

No. 69, in Schedule 12, page 121, line 13, column 2, at beginning insert: In section 6, in subsection (I), for the words "the two next following sections" there shall be substituted the words "sections 7 and 8 of this Act In section 22, after subsection (4) there shall be inserted the following subsection:— (5) The foregoing provisions of this section shall not apply in relation to any order made under section 21A of this Act.".

No. 70, in page 122, line 36, column 2, leave out "paragraph" and insert "paragraphs".

No. 72, in page 122, line 44, column 2, at end insert: (I) in the case of an agreement which becomes subject to registration by virtue of the expiration or withdrawal of an approval given under section 6A of the Act of 1956, within three months from the day on which the agreement becomes so subject.

No. 73, in Schedule 13, page 124, line 30, at end insert:

"1968 c. 66. The Restrictive Trade Practices Act 1968. Section 11."

These amendments deal with the position of wholesale co-operative societies which were the subject of a debate on an Opposition amendment in Committee. It was also the subject of a meeting between myself and a number of hon. Members who made representations about the position of such societies and the extent to which they ought to be eligible for the relief made available by Section 11 of the 1968 Act.

The problem arises because the wholesale co-operative society is deemed to be a trade association by virtue of the provisions of Section 6(8) of the 1965 Act. It follows that the recommendations it makes to its retail society members are registrable and subject to judicial examination. The wholesale co-operative society regards itself as more analogous to a group of companies with multiple retail outlets. I need not pursue the complexities of the relationships beyond that.

On analysis of the problem it is clear that some provision should be made for making available to wholesale co-operative societies relief of the kind in question. These amendments enable that to happen. They will enable the Secretary of State to approve industrial and provident societies that meet certain criteria so that they will no longer be deemed to be trade associations for the purposes of the restrictive trade practices legislation.

The criteria are threefold: first, that the society carries on business in the production and supply of goods or in the supply of services or in the application to goods of any process of manufacture; secondly, that its shares are mainly or wholly held by industrial and provident societies; and, thirdly, that those societies are retail societies or societies whose shares are wholly or mainly held by retail societies.

Having decided that relief should be given in that way, it was important to ensure that the freedom conferred was not likely to be abused. For that reason, a time limit of two years on any approval with provision to extend has been imposed. There is also power for the Secretary of State to withdraw the approval if it appears to him that the society was acting in a way which was likely to have a seriously adverse effect on competition.

I think that these amendments meet the representations that were made by hon. Members on a point which has caused concern for a number of years. I commend them to the House on that basis.

Dr. J. Dickson Mabon (Greenock)

On behalf of my 14 colleagues of the parliamentary Co-operative Group I should like to say how much we appreciate the way that the Minister has handled this matter. It was debated in Committee and was raised in the other place. I should also like to thank the Minister in the Lords, Lord Limerick, and Lords Diamond, Hoy, Jacques and Baroness Phillips for what they have done in this regard.

Often the Co-operative Group is forgotten, but it is to the credit of the Government that they have made these amendments. This is a complex matter, as the right hon. and learned Gentleman said and knows from the submission that we made to him, but it has been dealt with adequately and fairly not only from the co-operative sectional interest, but the wider interest of the nation.

On behalf of Co-operative Members both here and in another place, I should like to thank the Minister for these amendments.

Mr. Bruce Millan (Glasgow, Craigton)

I should like to add my thanks to the Minister. This matter was debated in Committee. It seems that the amendments that the Government put down in the other place meet the legitimate concern of the co-operative movement about the present legal situation and yet at the same time safeguard the public interest, because, if for any reason there was a feeling that the new provisions were leading to adverse results from the competitive point of view, he could step in and withdraw the approval. A nice balance has been drawn here, and the Government deserve to be thanked for what they have done in this difficult area.

Question put and agreed to.

Subsequent Lords Amendments agreed to.

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