§ 7. Mr. Ioan Evansasked the Secretary of State for Prices and Consumer Protection if he will make a statement on the practice of credit card companies preventing garages from giving discounts to cash customers.
§ Mr. John FraserOver the past few months, credit card companies have been taking action against traders who are not prepared to abide by the terms of their agreement with the credit card companies and sell petrol on credit cards on the same terms as sales for cash. However, I understand that the Director General of Fair Trading is considering a number of subjects for possible references to the Monopolies and Mergers Commission, amongst which are the services provided to credit card franchise holders, including garages. I have drawn my hon. Friend's interest to his attention.
§ Mr. EvansI thank my hon. Friend for that reply. Will he ask the Office of Fair Trading to take urgent action on the matter? Does he realise that there is a jungle in garage forecourts, where different customers are charged different 9 prices, varying from one garage to another? Will he ensure that the consumer is protected in this regard and that he buys petrol at the lowest possible price, without all the variations in price and trading stamps, without credit card holders being denied concessions and without the other present differentials?
§ Mr. FraserI am most anxious that the information available to motorists when they buy petrol should be the maximum possible. I do not think that one can regulate by law, or should try to do so, all the offers made by garages. I hope, however, that the offers will be made in a much simpler way so that customers can receive the most benefit from competition.
§ Mr. HigginsShould not the Minister tell his hon. Friend that he had his Question entirely the wrong way round? The credit companies insist that a fair discount should be given to those who buy by cash or credit.
§ Mr. FraserI am not taking a view on the matter, although I welcome the fact that the Director General of Fair Trading will examine the matter. The credit card companies will not allow a discount to be given only to the cash customer, and threaten to withdraw the franchise if this happens. I think that the views of both cash customers and credit card holders need to be looked at.