HL Deb 07 October 1986 vol 480 cc121-2

2.40 p.m.

Lord Graham of Edmonton

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 consultations and proposals will be made following the report of the Monopolies and Mergers Commission that tour operators are abusing their monopoly power by trying to discourage travel agents from giving discounts or other benefits to their consumers.

Lord Beaverbrook

My Lords, my honourable friend the Parliamentary Under-Secretary of State for Corporate and Consumer Affairs announced on 10th September that he had decided to take legislative action to remedy the public interest detriment identified by the Monopolies and Mergers Commission by making an order under the Fair Trading Act. The order would prohibit the practice by tour operators of preventing travel agents from offering pecuniary or other inducements to customers purchasing foreign package holidays from them.

Lord Graham of Edmonton

My Lords, I begin by congratulating and welcoming the noble Lord to the Dispatch Box for the first time. He carries a name which is deeply respected not only in the House but also in the country.

Will the Minister accept that the determination by the Monopolies and Mergers Commission is a vindication of those who have waged a campaign to reduce the cost of holidays, not least the Ilkeston Consumer Co-operative Society who have waged a campaign against sustained opposition by ABTA and the large tour operators? If the Minister is serious about giving the consumer the cheapest holidays possible will he have due regard to the fact that the views of ABTA and the large tour operators are not the only views to be considered within the travel industry?

Lord Beaverbrook

My Lords, I should like to thank the noble Lord for his kind remarks. The Government's action will create an environment in which travel agents can fully compete with each other in the market place. No doubt many travel agents will take full advantage of that fact.

Lord Underhill

My Lords, although appreciating the answer which the noble Lord the Minister has just given and the general spirit of my noble friend's supplementary question, does the Minister recall that yesterday we debated the responsibility of airline operators? Is it not important that there should now be discussions with the Civil Aviation Authority to ensure that no airline operator cuts corners to reduce costs and perhaps imperils safety?

Lord Beaverbrook

My Lords, the Monopolies and Mergers Commission Report extends beyond airline operators, in fact to all foreign tours.

Lord Williams of Elvel

My Lords, will the noble Lord bear in mind that in the past there have been some difficulties in monitoring the effect of orders made under the Fair Trading Act and that this is an extremely complex problem? Will he be very kind and draw the attention of his honourable friend to the problems of monitoring this particular problem where one has a diverse number of operators?

Lord Beaverbrook

My Lords, I shall be pleased to draw my honourable friend's attention to that matter.

Lord Graham of Edmonton

My Lords, in view of the need to ensure that the holiday consuming public are fully protected from anti-competition forces, will the Minister consider amending the Retail Prices Act 1984 to include services such as travel?

Lord Beaverbrook

My Lords, again I shall bring that matter to the attention of my honourable friend the Minister.