§ 3.22 p.m.
§ Lord Campbell of AllowayMy 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, further to their Answer given on 2nd December 1985 (H.L. Debates, col. 1060), whether consideration has been given to rationalisation of institutions in the field of competition; and if so, what conclusions have been drawn.
§ Lord Lucas of ChilworthMy Lords, my right honourable friend the Secretary of State for Trade and Industry intends soon to begin a review of competition law and policy, which will, among other things, examine the institutional structure of competition law administration.
§ Lord Campbell of AllowayMy Lords, in this review to which my noble friend the Minister referred on 2nd December as an ongoing review, may consideration be given to a redefinition of the statutory concept of public interest as affecting mergers? May consideration be given to bringing the activities of the take-over panel within statutory regulations? May consideration be given also to the rationalisation of this plethora of institutions in the light of United Kingdom accession to the European Communities? Will any reasoned conclusions of the review be placed in the Library?
§ Lord Lucas of ChilworthMy Lords, I do not think that my noble friend will really expect me to pre-empt the scope of my right honourable friend's inquiry, but I should be quite happy to draw my noble friend's points to his attention.
§ Lord Williams of ElvelMy Lords, can the noble Lord tell us when the terms of reference of this review will be published and how long he expects this review to take?
§ Lord Lucas of ChilworthMy Lords, as I said in my original Answer, my right honourable friend intends soon to begin a review. Of course, upon the scope of the review will depend the length of time it is likely to take.
Lord Bruce of DoningtonMy Lords, is it not the case that the Question put by the noble Lord's noble friend, in which he requested some definition in connection with mergers of a national interest, is only echoing the nature of the reply given by the noble Lord himself on the last occasion on which this matter was raised, in which he indicated the power of the Secretary of State to make such representations concerning the national interest as he thought fit? Is it not the case that a very large number of the mergers and take-overs that are now taking place can hardly be ascribed to be in the national interest as such? Will the noble Lord give this matter more careful and further consideration and then come back to the House and reply fully to his noble friend Lord Campbell of Alloway?
§ Lord Lucas of ChilworthMy Lords, I am quite sure that if my noble friend is dissatisfied with my Answer he himself will raise that. Perhaps I may remind your Lordships that my noble friend Lord Brabazon of Tara set out the Government's mergers policy in a debate in your Lordships' House on 22nd January. I believe that that fully answers the point made by the noble Lord, Lord Bruce of Donington.
The Earl of HalsburyMy Lords, can the noble Lord be a little more informative about what we may hope for in regard to the scope of this inquiry? What one should like to feel is that a European perspective will be included in its scope.
§ Lord Lucas of ChilworthMy Lords, I very much regret that I cannot add anything further. I am sorry to disappoint the noble Earl. I said in December that all the policies of the Government were kept under an ongoing review. My right honourable friend has thought fit to review competition policies. He will no doubt embrace a number of points that have been made from a number of sources. However, until the scope has been set down, I regret that I cannot pre-empt my right honourable friend's move in this direction.
§ Lord Campbell of AllowayMy Lords, my noble friend referred to the debate on 22nd January. May I ask him this? Is he aware that the views expressed by noble Lords in that debate, certainly as I see it, are totally at variance with the assurance he gave, or the statement he made, to the House on 2nd December that the machinery was working well, taking account of all developments in the market place?
§ Lord Lucas of ChilworthMy Lords, I am not quite sure of the point that my noble friend is making here. We believe that the provisions in this area are working well. My noble friend Lord Brabazon of Tara set out the Government's thinking in terms of merger policy and referral. The debate itself is public knowledge. My right honourable friend will no doubt take advantage of the views expressed in your Lordships' House in January when he comes to determine the scope of his inquiry.