HC Deb 14 June 1995 vol 261 cc786-7
9. Mr. Cousins

To ask the President of the Board of Trade to what extent United Kingdom competition law is in accordance with the terms of articles 85 and 86 of the treaty of Rome; and if he will make a statement. [26811]

Mr. Jonathan Evans

Articles 85 and 86 apply to agreements and practices that may affect trade between member states. Member states are free to apply national competition law within their own jurisdiction. UK competition law is different in approach from EC law but both share similar objectives in seeking to ensure that competition operates effectively throughout the economy.

Mr. Cousins

Does the Minister not know that this country has no law outlawing fixed markets and cosy cartels, even when factories lie idle? We have no better example of that than Tyneside's Swan Hunter shipyard, which is virtually closed. No British company wanted to touch it. A Dutch company has bought it and its other north-eastern operation has been sold to another Dutch company. We have two new enterprises in our region. That is an example of real competition. When will the Minister crack open the cartels, under which far too much of British industry shelters?

Mr. Evans

I am sorry that the hon. Gentleman did not begin his remarks by welcoming the news on Swan Hunter. That news has been welcomed on Tyneside and, at least, by Conservative Members. On his criticisms concerning the operation of domestic competition policy, the Government have made it clear that we are committed to legislate to improve the operation of the law on restrictive trade practices. It would be right to say, however, that the Deregulation and Contracting Out Act 1994 introduced a number of changes which the Government had announced at the end of the consultation in 1993, and of which the Director General of Fair Trading is now taking advantage.

Mr. Fabricant

Does my hon. Friend agree that some countries in Europe are still in breach of those regulations? For example, France continues to subsidise Air France and Spain continues to subsidise Iberia. Is he aware that France-Télécom and the Bundespost still operate non-tariff trade barriers? Does he agree that Britain, with its veto, still has a strong bargaining card in the courts of Europe and that the Labour party would throw away that veto and any influence that we have in Europe?

Mr. Evans

My hon. Friend the Under-Secretary of State for Trade and Technology continually battles in Europe on the matters that my hon. Friend outlined. We could seek no better champion.

Mr. Mike O'Brien

A moment ago, the Minister spoke about the Director General of Fair Trading, Sir Bryan Carsberg. Does he agree with Sir Bryan that Britain was in the lead in competition policy in the mid-1970s but has now fallen behind?

Mr. Evans

No, I do not agree with the views of Sir Bryan, who subsequently left as director general. Mr. Geoffrey Preston currently operates in that function. Sir Bryan has argued that there should be a diminished role for Ministers in terms of the operation of competition policy. I do not know whether the hon. Gentleman subscribes to that view but it would not command universal support in the House.