HL Deb 11 November 1975 vol 365 cc1762-4

[Nos. 5 and 6] After Clause 15, page 12, line 8, at end insert the following new clause:

Right of complaint against unfair practice of BNOC

.— (1) The three next following subsections shall have effect where a body corporate engaged commercially in the exploration, production, sale or supply of petroleum or any product derived from petroleum not being the Corporation nor a subsidiary of the Corporation makes to the Secretary of State written complaint about a practice employed by the Corporation or a subsidiary of the Corporation in the exploration, production, sale or supply of petroleum or any product derived from petroleum and the complaint is expressed to be made on the grounds that the practice is unfair to the complainant and specified the respects in which he considers that it is so unfair.

(2) The Secretary of State shall forthwith after receiving the complaint send a copy thereof to the Corporation and, after such period for consideration of, and comment upon, the complaint by the Corporation as the Secretary of State thinks reasonable has elapsed, shall send to the complainant a statement of the comments, if any, made by the Corporation on the complaint and shall, if he is of opinion that the complaint raises a question of substance and that the complainant has a reasonable case to make in support of the complaint afford the complainant and the Corporation an opportunity of appearing and being heard either personally or by a representative, before a person appointed by the Secretary of State.

(3) The Secretary of State shall consider the report of the person appointed under the last foregoing subsection and may if it appears to him that the practice complained of is unfair to the complainant, give to the Corporation such directions as appear to him to be requisite to secure the removal of the grounds on which it is so unfair; and the Secretary of State shall furnish the complainant with a statement of any such directions and the Corporation shall give effect thereto.

(4) Where a complainant avails himself of the right conferred by subsection (2) above to appear and being heard before a person appointed by the Secretary of State, the Secretary of State shall furnish the complainant and the Corporation each with a copy of the report of the person so appointed and a statement of the conclusions reached by the Secretary of State on considering the report.

The Commons disagreed to this Amendment for the following Reason:

Because the aims of the amendment are adequately secured by existing legislation.

7.12 p.m.

Lord BALOGH

My Lords, I beg to move that this House doth not insist on their Amendment No. 5 to which the Commons have disagreed for the Reason numbered 6. I hope we can agree that it is not necessary to insist on this Amendment. There is already protection under the fair trading legislation and under the provisions of the Treaty of Rome for ensuring that BNOC does not pursue unfair practices. The BNOC will doubtless have its critics and opponents and under this clause there would only too easily be a great number of unjustifiable complaints. All of these would have to be investigated and this would needlessly distract—and that would be their object—BNOC from its proper function. I therefore hone that noble Lords will not insist.

Moved, that this House doth not insist on their Amendment No. 5 to which the Commons have disagreed for the Reason numbered 6.—(Lord Balogh.)

Lord CAMPBELL of CROY

My Lords, we are sorry that this complaints procedure is not to be included in the Bill because we consider that it would have helped to reassure many who are viewing with some doubts this new Corp- oration which is to grow so large. There were similar provisions in the Steel Act 1967 vis-à-vis the British Steel Corporation. The noble Lord, Lord Balogh, has said that existing legislation which is mentioned in Reason numbered 6 consists of the Fair Trading Act and EEC arrangements. The Fair Trading Act is of course largely directed to relations between traders and consumers rather than between two parts of an industry. I should like to ask the noble Lord whether he is satisfied that that Act and the EEC arrangements to which he referred would apply to all cases of complaints of unfair practices as between two parts of this industry.

Lord BALOGH

My Lords, I should have thought that the answer is positive. It seems to me again, as with the last Amendment, that we are here tying up the Corporation in its ordinary commercial pursuits.