HC Deb 29 June 1983 vol 44 cc572-3
14. Mr. Eggar

asked the Secretary of State for Trade and Industry whether he is satisfied with current competition law.

Mr. Alexander Fletcher

In general I believe the competition legislation to be satisfactory, but my hon. Friend will not expect me to have reached firm views on all its aspects.

Mr. Eggar

Are not the worst monopolies to be found in the public sector? What steps are my hon. Friend and his colleagues taking to ensure that we have more competition within and among the public sector bodies?

Mr. Fletcher

My hon. Friend will be aware that under the Competition Act 1980, when public bodies are referred to the Monopolies and Mergers Commission for efficiency audit, it is fully entitled to make any recommendations that it thinks will improve that public body. My hon. Friend may have recently seen a report on the National Coal Board.

Mr. Campbell-Savours

Is not the success of competition law on policy in many ways dependent upon the willingness of Companies House to provide adequate information on companies? Is the Minister aware that Mr. Hermann Niessen, in Directorate-General III in the Commission, has stated that unless the British Government introduce a postal service for the dissemination of information by Companies House he will take the British Government to the European Court of Justice? Why are the Government dragging their feet in this matter, which is so important for British companies?

Mr. Fletcher

Leaving aside what the hon. Gentleman says about the Commission, we are examining Companies House, and always endeavour to see how the services that it provides can be improved.

Sir Bernard Braine

Within his experience, can my hon. Friend think of a more blatant example of restriction in trade, of tacit cartel arrangements and disadvantage for the consumer than the present policy governing European air fares? What will the Government do about them?

Mr. Fletcher

I note my hon. Friend's point, but he will know that the aviation industry has now been transferred to the Department of Transport. Perhaps he will take the matter up with my right hon. Friend the Secretary of State for Transport.

Mr. Wrigglesworth

Will the Minister take action to do something about the building society cartel? Is not the control of interest rates by the building societies as a block against the interests of both investors and borrowers? Will his Department take action to refer that cartel to the Monopolies and Mergers Commission?

Mr. Fletcher

I note what the hon. Gentleman said, and my right hon. Friend the Chancellor of the Exchequer is also interested in this matter.

Mr. Richard Page

Does my hon. Friend propose any changes to the guidelines governing the Office of Fair Trading and the Monopolies and Mergers Commission?

Mr. Fletcher

We are not proposing at this point to make any changes in the legislation.

Mr. John Fraser

Will there be a change of policy so that in future the Department accepts the advice of the Director General of Fair Trading and, later on, if there has been a reference, accepts the advice of the Monopolies and Mergers Commission, contrary to some of the capricious treatment of the commission by the Government in recent cases?

Mr. Fletcher

The hon. Gentleman will have to wait and see. My right hon. Friend has made it clear that he would wish to accept the advice of the Director General whenever possible, and that in cases where he finds himself in disagreement he will explain the reasons why.