HL Deb 29 November 1962 vol 244 cc1299-302

3.12 p.m.

LORD LUCAS OF CHILWORTH

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether, in view of the request made by the Chancellor of the Exchequer to the motor industry to consider the adoption of seasonal prices to even out seasonal demand and thereby achieve a more even production flow, they will amend the Restrictive Trade Practices Act, 1956, so as to prohibit the individual enforcement of resale prices which would have the effect he desires.]

LORD DERWENT

My Lords, while, as the law stands, an individual supplier who supplies his goods subject to resale price maintenance conditions may enforce those conditions, this does not necessarily preclude the adoption of seasonal prices in an industry; it is always open to the suppliers to vary their maintained prices from season to season.

The noble Lord's Question raises the subject of resale price maintenance in its relation to the products of the motor industry, but this cannot be considered separately from resale price maintenance over the whole field of trade and industry. Your Lordships will be aware that a detailed inquiry into the subject of resale price maintenance was carried out for my right honourable friend the President of the Board of Trade by his officials. My right honourable friend is considering their report, but this is a complicated matter and I cannot anticipate what will be the outcome of his deliberations.

LORD LUCAS OF CHILWORTH

My Lords, is the noble Lord aware that the objective of resale price maintenance is to keep prices up? I have always understood that the policy of Her Majesty's Government was to keep prices down. Is the noble Lord also aware that in the economic circumstances of this country to-day resale price maintenance is thoroughly dishonest, as it persuades and misleads the buying public into thinking that the advertised price is the price that should be paid for the goods on sale, although the Government know, and the industry knows, that as regards the motor industry the majority of its products are sold under the price advertised? Do the Government want to carry on being a party to what I have characterised as dishonest?

Further, my Lords, may I ask the noble Lord whether I should be right in saying—in spite of the fact that he says he cannot anticipate it—that the Departmental Committee set up by his right honourable friend the President of the Board of Trade recommended that, as resale price maintenance throughout the whole of this country was against the public interest, it should be abandoned?

LORD DERWENT

My Lords, if I may take the second part of the supplementary question first, this inquiry by my right honourable friend was a confidential one, in so far as it was done for him by his officials who reported to him. So I cannot say any more about that inquiry until my right honourable friend has made up his mind. I do not accept that resale price maintenance is of necessity crooked.

LORD LUCAS OF CHILWORTH

My Lords, I did not say anything of the kind. I said that it was dishonest, in so far as it led the purchaser to think that the price advertised was the price to be paid; whereas the noble Lord knows, and I know, that the majority of the products sold under resale price maintenance in the motor industry are sold at lower than the advertised price.

LORD DERWENT

My Lords, I do not accept that the argument of the noble Lord is right in all cases.

VISCOUNT ALEXANDER OF HILLSBOROUGH

My Lords, may I ask the noble Lord whether he is aware that it is not only in the motor industry, but widespread among ordinary common branded products that goods which have been the subject of rules in the trade are now being sold well below their resale maintenance price—a fact which is greatly disturbing to those traders who have kept honest faith with the people who are responsible for resale maintenance of price and the agreed margins? Really, the Government ought to come to some firm and adequate decision, as to what is the right course to pursue

LORD DERWENT

My Lords, I think I must say to the noble Viscount the Leader of the Opposition that that is really outside the original Question. But I would repeat that this matter is being considered by my right honourable friend, and when he has made up his mind he will make a statement. But the supplementary question put by the noble Viscount is really very wide of the original Question on the Order Paper.

LORD STONHAM

My Lords, can the noble Lord say whether, as the law stands at present, there is anything at all to stop motor-car manufacturers from abandoning resale price maintenance voluntarily?

LORD DERWENT

Nothing at all, and in fact they have considered what is the best method of dealing with this.

LORD LUCAS OF CHILWORTH

My Lords, could the noble Lord tell us what are their conclusions as to the best method of dealing with this?

LORD DERWENT

My Lords, if the noble Lord its referring to the motor manufacturers, that is a matter for them and not for me.