HC Deb 16 May 1973 vol 856 cc1517-8

'(1) Subject to the following provisions of this section, the Secretary of State may at any time vary a merger reference made under section 69(3) of this Act.

(2)A merger reference made under section 69(3) of this Act shall not be so varied that it ceases to be a reference limited in accordance with that subsection.

(3)Without prejudice to the powers of the Secretary of State under section 70 of this Act, a merger reference shall not be varied so as to specify a period within which a report on the reference is to be made which is different from the period specified in the reference in accordance with that section'.—[Mr. Emery.]

Brought up, and read the First time.

The Under-Secretary of State for Trade and Industry (Mr. Peter Emery)

I beg to move, That the Clause be read a Second time.

Mr. Deputy Speaker (Miss Harvie Anderson)

With this it will be convenient to discuss Government Amendments No. 61, 62, 88 and 89.

Mr. Emery

This new Clause arises from an undertaking given in Committee. It was pointed out by the hon. Member for Farnworth (Mr. Roper) that the power to make a limited merger reference to the Commission brought with it the danger that if such a reference were too narrowly drawn this would prevent the Commission from looking at other difficulties which might emerge during the course of the investigation. I considered the argument put by the hon. Member and also by the hon. Member for Glasgow, Craigton (Mr. Millan) who pointed out that Clause 52—then Clause 48—gave specific power to vary a monopoly reference but that there was no comparable clause concerning merger references.

This new Clause gives power to the Secretary of State to vary a limited merger reference, as Clause 32 gives him power to vary a monopoly reference. I believe that it meets the undertaking we have given and I hope that it will be acceptable to the House.

Mr. Bruce Millan (Glasgow, Craigton)

I am grateful to the Government for tabling this new Clause which, as the Minister said, is in response to a point raised in Committee. May I say, without in any way pressing the point, that I find the wording of subsection (1) rather odd because it talks about a merger reference made under Section 69(3) of the Act. My understanding of the Bill was not that merger references were made under that subsection but only that they could be limited in accordance with the provisions of that subsection.

Reading the new Clause without having heard the hon. Gentleman's explanation, I found it difficult to understand what the Government were doing. In view of what has been said, I have no doubt that they are trying to meet the point made in Committee. Perhaps the hon. Gentleman will look at the wording. On a first reading it is not absolutely clear what is intended.

Mr. Emery

It might be helpful if I say that it has been done in this way because there is no intention of the power being such as to turn a limited reference into an unlimited reference. In other words, once a limited reference has been made the whole concept is that it should remain as such. It may need to be slightly altered. It is for that reason that it is so worded.

Question put and agreed to.

Clause read a Second time, and added to the Bill.

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