HC Deb 16 March 1981 vol 1 cc4-5
4. Mr. Beaumont-Dark

asked the Secretary of State for Trade whether he has yet concluded consideration of whether collusive tendering should be made a criminal offence.

The Minister for Consumer Affairs (Mrs. Sally Oppenheim)

I am still considering the many useful representations received. Views were sharply divided on the desirability of creating a new criminal offence, and I am weighing these arguments carefully before coming to a decision.

Mr. Beaumont-Dark

Does my right hon. Friend think that the consultations and considerations that have been taking place since July have continued long enough, and that we should make up our minds whether collusive tendering, which is an evil, is to be legislated against, or whether extra powers should be given to the Office of Fair Trading to stamp out the offence for fair-minded business people and local authorities?

Mrs. Oppenheim

I agree that major competition issues are involved in collusive tendering. As with other restrictive agreements, it is subject to registration under the restrictive trades practices legislation. As my hon. Friend knows, collusive tendering is especially deceptive and difficult to detect. It is difficult to find concrete evidence. That is why my Department issued a Green Paper on the subject. One of the problems confirmed in the response to the Green Paper concerns the practicalities of enforcement. It has been pointed out that the existing law on fraud may suffice in clear-cut cases. The matter deserves urgent and diligent consideration.

Mr. John Fraser

Is the Minister aware that simply because something is difficult to detect it is not a reason for not making it a crime? As the Liesner committee reported on the matter two years ago, and as collusive tendering amounts to little more than a conspiracy to defraud public authorities and ratepayers, should not the practice be made a crime immediately?

Mrs. Oppenheim

If something is difficult to detect it is usually equally difficult to enforce. Laws that are impossible to enforce are not likely to have a deterrent effect on those who break them. As collusive tendering could be a fraudulent practice—and, in some cases, is so—the law on fraud may suffice. I want to examine the representations. I consider it to be an important competition issue. I shall reach my decision on the basis of all representations.