Motorway Service Stations (Hansard, 25 July 1977)

§ 6. Mr. Arnold Shaw
asked the Secretary of State for Prices and Consumer Protection whether he will institute an inquiry into the prices charged by motorway service stations.

§ Mr. Maclennan
I shall consider this.

§ Mr. Shaw
Is not my hon. Friend aware that this scandal has been going on over the years and that it is about time something was done about it? Does not he agree that, in the virtual monopoly situation that appertains at present, the people who need this protection are those who use these service stations? Should he eventually come round to the idea of an investigation, will he look into prices and conditions in the restaurants and cafeterias as well as at the petrol pumps? Will he also consult the Secretary of State for Transport on the question of the concessions to the various firms on the motorways?

§ Mr. Maclennan
It is with those points in mind that I am considering seriously and urgently the possibility of a reference to the Price Commission.

§ Mr. Emery
Does the hon. Gentleman realise that after the major oil compaines had reduced petrol prices by 3p, sometimes as much as a fortnight afterwards certain service stations, using their monopoly position, had still not reduced their prices to the consumer? If there is to be a monopoly, the Government must control it. I would prefer to see more competition. In the circumstances, will the hon. Gentleman consider whether more than one supplier should be granted a licence when the applications for motorway petrol licences are made? After all, six or seven different petrols are being sold and more than one supplier should be licensed.

§ Mr. Maclennan
The method of granting licences is for my right hon. 13 Friend the Secretary of State for Transport, but I take the point about the importance and desirability of competition. That is likewise a factor that we have in mind.

§ Mr. Pardoe
Will the hon. Gentleman change the tense of his answer from "shall consider" to "am considering"? Is it not the case that his right hon. Friend wrote to me last week saying that he was already considering it? Does not the hon. Gentleman agree that all the factors of scale and distribution costs are in favour of a lower petrol price on motorways than in small, more widely-flung stations? How many companies are involved in providing these services? What is the duration of the franchise in each case, and how often are the franchises renewed?

§ Mr. Maclennan
Perhaps I can amend my answer to say that the possibility of an inquiry is under consideration. The hon. Gentleman has reflected the anxiety of both sides of the House about this matter, and it would be into precisely the sort of points he has raised that any inquiry carried out by the Price Commission would focus.

§ Mr. Ioan Evans
As well as instituting an inquiry, should not my hon. Friend consider giving a warning to motorists that they can expect this sort of thing on motorways? For example, many people travelling on motorways at holiday times are not used to motorway prices. Should not motorists be recommended to fill up before they get on to a motorway? Would not this contribute to a fall in prices on motorways?

§ Mr. Maclennan
I am sure that my hon. Friend's advice will be widely noted.