HC Deb 01 February 1984 vol 53 cc259-60
12. Mr. Flannery

asked the Secretary of State for Trade and Industry if he will refer the supply of gases by the British Oxygen Company to the Monopolies and Mergers Commission.

Mr. Alexander Fletcher

The Director General of Fair Trading has received representations about the supply of medical gases by the British Oxygen Company. He has asked for evidence to enable him to consider, in accordance with his statutory responsibilities, whether to take action. My officials are in close touch with the Office of Fair Trading.

Mr. Flannery

Is it not a fact that the Government are very slow to attack private monopolies and very quick to accuse the nationalised industries of being monopolies? Does not the arrogance of power that is vested in the wages of the chief executive and other executives in the organisation show that it is so dominant in the market that it is clearly a monopoly, and that the Government are aiding that monopoly instead of doing something about it?

Mr. Fletcher

No. If the hon. Gentleman has any evidence that he wishes to submit to the Director General, who is considering the case, I should be pleased if he would do so.

Mr. Gould

Is not this case the acid test of the Government's competition policy? Does the Minister not recognise that to imply, as his right hon. Friend the Secretary of State did yesterday in a speech at the Office of Fair Trading conference, that competition alone is all that is required to promote efficiency and protect the consumer is far too simple-minded? Does not that case show that unregulated competition means that a dominant firm can exploit and abuse its market position to the detriment of efficiency, the consumer and, in this case, the taxpayer? In this case, will he be as robust as his Conservative predecessors in 1954?

Mr. Fletcher

The matter is already being considered by the Director General. If he decides to make recommendations to my right hon. Friend the Secretary of State, we shall take speedy action.