§ 2.58 p.m.
§ Lord AIREDALEMy 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 they will advise the electricity boards against using their monopoly powers to compete unfairly with private electrical contractors, as for instance by printing on electricity bills slogans advertising their contracting services and enclosing leaflets advertising appliances for sale.
§ Lord STRABOLGIMy Lords, electricity boards are permitted by Statute to carry out contracting services and to sell electrical appliances. The boards have no monopoly in these activities; they are subject to considerable competition. The methods used by the boards to advertise these activities are a matter for them.
§ Lord AIREDALEMy Lords, I am much obliged; but does the noble Lord understand that I am trying to make this point? If a private electrical contractor chooses to follow the lead of the electricity board and indulge in direct mail advertising, how can he hope to be able to compete, at seven pence a time, when the board has access four times a year to every household without any additional postage charges?
§ Lord STRABOLGIMy Lords, like any commercial organisation with a service to offer or something to sell, electricity boards need to bring these to the attention of their customers. Their billing system provides a readily available and economic method of doing so. I imagine that if they were to post their leaflets by separate post they would be accused of wasting money.
§ Baroness GAITSKELLMy Lords, may I ask the Minister whether this is not the perennial grouse of private firms against the nationalised industries? In this context, have we not heard (is it unknown?) that in private industry there are cartels and price-fixing? In any case, does the Minister not think that advertising on an electricity bill, slogans on an electricity bill, might not be unproductive?
§ Lord STRABOLGIYes, my Lords, I fully agree with my noble friend. if the boards were prevented from using this method, they would have to spend more 1806 on conventional advertising media and the increased costs would have to be borne by the consumer.
§ Lord SHINWELLMy Lords, does it not come as a shock to my noble friend to realise that the Liberal Party appear to have abandoned their favourite principle of competition?
§ Lord STRABOLGIMy Lords, I do not answer for the Liberals. As I have said, the hoards have no monopoly here. The consumer is free to choose between the public and the private sectors. I may say also that the boards are equally subject to legislation designed to protect the consumer, and subject to any hire-purchase restrictions in force. This is the part of competition in which we all believe.
§ Lord GOODMANMy Lords, might I recount to the noble Lord a personal and a lamentable example?
§ Several noble Lords: No.
§ Lord GOODMANMy Lords, it is a question. Might I recount it? In any event, is the noble Lord aware of the lamentable circumstances which I encountered when I endeavoured to buy an electric cooker? My housekeeper sought to purchase a kipper—I mean cooker, although either could have been bought since it was to Harrods that she went. Arriving at Harrods, she was quoted a price of £180. When we inquired at the local electricity company whether a similar cooker could be bought from it, the price was £40 higher. When I sought an explanation I was told that it was because the electricity company was the only service that could ensure that the cooker was maintained in order. In order to bring down prices, would it not be appropriate that an electricity company should be advised to give its services generally in this matter, and should not proclaim a monopoly that is obviously injurious to the trade and the customer?
§ Lord STRABOLGIMy Lords, we all know of these cases. I am sorry that my noble friend has had a bad experience—although I am quite sure that he is able to take care of himself. The complaints by the general public about individual cases can, of course, be taken up with the area electricity consultative councils. 1807 Details about how to get in touch with them are advertised on the back of the accounts.
§ Lord BYERSMy Lords, is the noble Lord aware that this is not a question of competition? It is a question of fair competition and unfair competition, which is the point that my noble friend wishes to make.
§ Lord STRABOLGIMy Lords, I think that it would be a disservice to electricity consumers to deny them the electricity boards' considerable experience in these fields. A considerable number of their customers use these services extensively. This is perfectly ordinary competition between the public and private sectors.
§ Lord PARGITERMy Lords, is the noble Lord aware, and is it not a fact, that many large companies send out similar literature with their accounts to their customers?
§ Lord STRABOLGIYes, my Lords, of course, it is an approved method of advertising.
§ Lord AIREDALEMy Lords, the companies which the noble Lord, Lord Pargiter, mentions do not enjoy this monopoly of having access by post to every household in the United Kingdom. Is that not so?
§ Lord STRABOLGIMy Lords, I think that I have answered the noble Lord, Lord Airedale, about this, and the use of alternative media, if they were denied this particular method.