HC Deb 16 February 1981 vol 999 cc9-10
10. Mr. Palmer

asked the Secretary of State for Trade if he will refer the proposal of Associated Newspapers to obtain full control of the Bristol Evening Post and the Western Daily Press to the Monopolies and Mergers Commission.

Mrs. Sally Oppenheim

The proposed takeover does not require my right hon. Friend's consent under the newspaper merger provisions of the Fair Trading Act 1973, and the question of a reference under those provisions does not arise. The Director General of Fair Trading is, however, making the usual investigations to see if the takeover qualifies for reference under the general merger provisions of the Act. If he finds that it does, he will make his recommendation to my right hon. Friend in the normal way, and my right hon. Friend will announce his decision as soon as possible.

Mr. Palmer

Does the right hon. Lady appreciate the consternation that her answer will cause to the readers of the papers in Bristol and to the workers in the enterprises? Will she explain why her right hon. Friend has forgotten so soon his once-vaunted belief in free competition?

Mrs. Oppenheim

I have received no expressions of consternation from any members of the public, so far as I am aware. The law as it stands is the law and this is not a referable reference under the newspaper merger provisions of the Fair Trading Act. If it were, obviously my right hon. Friend would consider it as such. What the hon. Gentleman is asking for is a contravention of the law.

Mr. Paul Dean

Will my right hon. Friend bear in mind that many people who come from the area served by the two excellent local newspapers value greatly the strong element of local control and management?

Mrs. Oppenheim

I also come from the area which is covered by the newspapers. I have noted carefully my hon. Friend's view.

Mr. Christopher Price

Is not a whole new look at the statutory provisions governing newspaper mergers necessary? Does the right hon. Lady agree that in the spirit of the 1973 Act newspapers are special cases and that the House and the Monopolies and Mergers Commission should look carefully at each case? If each case goes through without scrutiny the public will feel that we do not care about the concentration of a monopoly press in Britain.

Mrs. Oppenheim

Consumer and competition legislation comes under review from time to time in my Department. The matter is one of many that may be looked at when the legislation is reviewed.

Mr. John Fraser

Why is there not a mandatory reference under section 58, when clearly the newspapers are economically going concerns and they are not controlled by Associated Newspapers, which has only three directors out of eight on the board, and also when on the face of it the combined circulation would fall to be referred under section 58? If the right hon. Lady can convince the House that they are not referable, will she give support to a reference under the general merger provisions of the Fair Trading Act?

Mrs. Oppenheim

Within the meaning of the Act, Associated Newspapers is a newspaper proprietor in relation to the Bristol Evening Post group, which includes the Western Daily Press. No reference is possible under the Act: where an existing proprietor simply increases his control, although, as I have said, that may be a matter for a general reference by the Director General of Fair Trading under the normal as opposed to the newspaper merger sections of the Act.

Mr. Fraser

May I tell the right hon. Lady that we take serious objection—

Mr. Speaker

Order. A supplementary question is not a vehicle for passing information. The hon. Gentleman may ask a question.

Mr. Fraser

Will the right hon. Lady re-examine the conclusions that she has come to about control in the light of the facts? Does she agree that there is no mathematical rule about whether someone controls a company?

Mrs. Oppenheim

Associated Newspapers already owns 60 per cent. of the shares of the parent company. The hon. Gentleman will agree that that is tantamount to being in control.