HC Deb 14 May 1973 vol 856 cc992-3
2. Mr. Norman Lamont

asked the Secretary of State for Trade and Industry whether he will refer the proposed Slater Walker—Hill Samuel merger to the Monopolies Commission.

30. Mr. R. C. Mitchell

asked the Secretary of State for Trade and Industry whether he will refer to the Monopolies Commission the proposed merger between Slater Walker and Hill Samuel.

The Minister for Trade and Consumer Affairs (Sir Geoffrey Howe)

I hope to announce a decision shortly.

Mr. Lamont

Whatever the pros and cons of this merger, is my right hon. and learned Friend aware that there is considerable uncertainty about the Government's policy towards monopolies and that in terms of the criteria for reference to the commission we seem to be moving backwards, not forwards? Is it not the case that, with respect to conglomerate mergers, there is plenty of evidence from the 1950's and 1960's about their economic effects and that we ought now to be able to get beyond the situation of still building up a case book?

Sir G. Howe

The Government's position was made clear by the Under-Secretary of State in the debate which took place before Christmas. I am not sure whether my hon. Friend is moving forwards or backwards, or backwards or forwards, but certainly all the factors which have been enunciated and are relevant will be taken into account in considering this particular merger.

Dr. Gilbert

Did the right hon. and learned Gentleman see the recent letter in The Times from the Chairman of Lloyds Bank which said that in situations where companies are in difficulties there is a clear conflict of interest between creditor institutions and equity-owning institutions? Bearing that in mind, should we not now be moving in the direction of segregation of these two types of financial activities rather than conniving at great conglomerates of just this sort?

Sir G. Howe

That is a different question but I will bear in mind what the hon. Member has said.

Mr. Benn

Is the right hon. and learned Gentleman aware that in view of the size of this proposed merger his announcement that he is still considering it is quite inexplicable? In view of the fact that there is—or there would be—enormous power gathered in this merger among people who are totally unaccountable to the public, and in view of the revelations of gross abuse of power in the Lonrho case, we shall expect a better answer than that.

Sir G. Howe

The right hon. Gentleman has a gift for attaching all sorts of dimensions to questions which are unrelated to them. In view of the size of the merger it is plainly right that I should consider the matter carefully. So far from its being inexplicable that it should be carefully considered, it is utterly explicable and right. The right hon. Gentleman says that it should be done at once. He specialises in instant decision-taking and instant government.