Motorway Service Stations (Hansard, 13 April 1981)

§ 8. Mr. Dykes
asked the Secretary of State for Trade whether he will use his powers under the Fair Trading Act 1973 to cause an investigation to be made into the trading practices of motorway service stations.

§ 13. Mr. Montgomery
asked the Secretary of State for Trade if he will cause an investigation to be made under the Fair Trading Act into the practices of motorway service stations.

§ Mrs. Sally Oppenheim
Neither my right hon. Friend nor the Director General of Fair Trading has any plans to refer trading practices on motorway service areas to the Monopolies and Mergers Commission at present. A number of matters relating to competition and consumer protection are being discussed between my right hon. Friend the Secretary of State for Transport and the operators, and, naturally, I too am keeping a close eye on the consumer considerations involved.

§ Mr. Dykes
I offer some thanks to my right hon. Friend for that reply. I would, however, ask her to reconsider the first part of the answer and to think again carefully about the matter. Does she not agree that this whole scene is dismal and appalling and that the public are increasingly confronted with the awful three Rs—rotten catering and facilities, racketeering over food and petrol charges and rip-offs on car repair costs? As an example, may I refer my right hon. Friend—

§ Mr. Speaker
Order. This is becoming like an Adjournment debate. Will the hon. Gentleman give his example very quickly?

§ Mr. Dykes
One quick example is that it is not possible to get the AA and the RAC on to garage forecourts in motorway service areas to repair cars which have broken down. These have to be done on the spot.

§ Mrs. Oppenheim
I am unable to disguise my sympathy with the remarks of my hon. Friend. It is true that many motorists find the service provided by motorway service areas unsatisfactory and expensive. At the same time, it should be noted that some areas have high standards and are deservedly popular. These standards should not be the exception; they should be the rule. However, I should point out that the question of a reference to the Monopolies and Mergers Commission is largely one for the Director General of Fair Trading.

§ Mr. Montgomery
Is my right hon. Friend aware that sympathy is not enough? We have waited far too long for action to be taken over service stations. As my hon. Friend has pointed out, people are sick of the rip-offs, the price of food and the price of petrol. As the Government believe in competition, the sooner we have action, the better for everyone concerned.

§ Mrs. Oppenheim
I agree with my hon. Friend that sympathy is not enough, and the present situation is not acceptable. My right hon. Friend the Secretary of State for Transport hopes to encourage more competition between operators by selling long-term leases and giving them greater commercial freedom. But that will have to be monitored carefully to ensure that higher standards are achieved. That is why my right hon. Friend is currently discussing a star rating system with motorway operators.

§ Mr. Hardy
Will not the Minister respond more helpfully to the advice and alliteration of her hon. Friend the Member for Harrow, East (Mr. Dykes)? Is not-the price of petrol prohibitive and the cost of food frightful? Since the right hon. Lady will not take action under the fair trading legislation, will she not at least publicly urge people to fill their car tanks before they reach motorways and use the motorway service areas only to eat the sandwiches that they should take with them in the hope that market forces will encourage the sense of responsibility from which this Government appear to have abdicated?

§ Mrs. Oppenheim
I am disappointed because I thought I had been helpful and sympathetic. Now I shall be even more helpful to the hon. Gentleman about one of the matters that he raised. I understand that advice is often given to tourists, for example, by car rental firms, about the existence of off-motorway, nearby service stations which may offer lower prices and better service. There is scope for more widespread provision of such information. Any information which increases competition is welcome, because it leads to general improvement and higher standards.

§ Mr. Marlow
Will my right hon. Friend confirm that, in 1982, consumers will be able to buy petrol in either litres or gallons at motorway service stations?

§ Mrs. Oppenheim
I confirm that motorway service stations will be free in 1982 to offer petrol by the gallon or by the litre.

§ Mr. John Smith
In her replies so far, the Minister has refused to commit the Government to any action on a matter about which both sides of the House have expressed deep and justified concern. Will the Minister refer pricing in motorway staions to the Office of Fair Trading under section 15 of the Competition Act—a power which the Government already have—and not rely on advice by voluntary organisations?

§ Mrs. Oppenheim
That would be the simple solution if pricing were the only problem, but it is not. We are concerned about the standard of service. It is for that reason that my right hon. Friend the Secretary of State for Transport is currently engaged in negotiations. I agree that the current situation is not satisfactory. Unless the situation improves, the Director General of Fair Trading will take note of what is said and consider whether a reference is appropriate. However, it is entirely a matter for the Director General of Fair Trading.