HL Deb 18 December 1986 vol 483 cc276-7

11.16 a.m.

Lord John-Mackie

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

The Question was as follows:

To ask Her Majesty's Government what remit the Monopolies and Mergers Commission were given regarding the bids to take over S. & W. Berisford and British Sugar plc.

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)

My Lords, in the case of any merger reference the commission is required to report on whether a merger situation qualifying for investigation has been created, or will be created, and on whether such a situation operates or might be expected to operate against the public interest.

Lord John-Mackie

My Lords, I thank the Minister for that reply, which I rather anticipated. The Government are keen on competition. We have only two major sugar companies in this country, Berisford, handling British sugar, and Tate and Lyle. If the Italian company Ferruzzi were to take over, any amalgamation would surely be wrong. I cannot understand why it was necessary to put it to the monopolies commission at all if the Government are keen on competition and we want to see this situation maintained in the country, especially with only two major sugar companies involved.

Lord Lucas of Chilworth

My Lords, the answer to the noble Lord's question is that it was the Director General of Fair Trading who recommended that all three bids should be put to the Monopolies and Mergers Commission because they raised issues of public interest arising from the special nature of the sugar market and the change of ownership of British sugar. The Ferruzzi bid was referred on the grounds, again, of the special nature of the sugar market.

Lord Walston

My Lords, are the Government aware, and is the monopolies commission aware, of the potential threat to the refining of Commonwealth sugar coming in under the EC-ACP agreements that might accrue if the bid by Ferruzzi was in fact acceptable? Is that being taken into account in the decision of the Monopolies Commission, and will it be taken into account by the Government in their final decision?

Lord Lucas of Chilworth

My Lords, in answer to the noble Lord, Lord Walston, the Government are indeed aware of the concern he expresses, as also are the MMC, who will be taking that into the consideration they are currently giving to this matter.

Lord Williams of Elvel

My Lords, would the noble Lord agree that the criteria of public interest in the Fair Trading Act contain no reference to possible European monopolies as opposed to national monopolies? Should not those criteria be amended? Would that be part of the competition review that the noble Lord's department is undertaking; and when can we expect the results of the review to be published?

Lord Lucas of Chilworth

My Lords, I think that the subject matter of the review is somewhat different from the Question on the Order Paper. I should be delighted to answer the noble Lord if he cares to put down a specific question.