HL Deb 08 June 1989 vol 508 cc935-6

Baroness Burton of Coventry asked Her Majesty's Government:

Whether they have been informed by the Director General of Fair Trading of the decision reached by the Office of Fair Trading on the proposed plans by the British Airports Authority plc to increase charges to bus operators taking passengers to London's main airports, and if they will amplify their Answer of 15th March (Official Report, cols. 228–9).

Viscount Davidson

My Lords, the Office of Fair Trading is continuing its inquiries. It would be wrong for me to speculate on possible outcomes.

Baroness Burton of Coventry

My Lords, I feel sure that the Minister will agree that the Answer supplied to him today hardly provides the amplification asked for in the Question. Can he tell the House whether I am correct in believing that a decision is imminent? If so, can he say whether it will include not only the bus charges matter but also whether a reference should be made to the Monopolies and Mergers Commission, as mentioned by the noble Lord, Lord Brabazon, on 15th March at col. 228 of the Official Report, and which would come under the heading of competition and monopoly arising from other matters being looked into by the Office of Fair Trading?

Viscount Davidson

My Lords, I wish to say how pleased noble Lords are to see the noble Baroness in her usual place after her unfortunate accident.

Noble Lords

Hear, hear.

Viscount Davidson

My Lords, clearly it has not taken the wind out of her sails! I cannot say when a decision will be made. It is entirely in the hands of the Office of Fair Trading. It can investigate cases under the 1973 or 1980 Acts and refer them to the Monopolies and Mergers Commission if it believes that anti-competitive practices are being carried out or a monopoly situation exists. The Monopolies and Mergers Commission can then decide whether practices are against public interest.

Baroness Burton of Coventry

My Lords, the Minister and the House are very kind but not half as pleased as I shall be when I receive a good Answer! Can the Minister ensure that the British Airports Authority looks at what has been said today? Perhaps I may repeat a Question which I asked on 15th March. Do the Government approve of the monopolistic way in which the British Airports Authority exercises its position, especially since privatisation?

Viscount Davidson

My Lords, I have a copy of the Official Report of 15th March. However, all I could do would be to repeat my noble friend's Answer to that Question. I am sure that the chairman of British Airports Authority will read the report of today's exchanges. I wish that I could give the noble Baroness a better Answer but I am afraid that I cannot.

Lord Underhill

My Lords, does the noble Viscount recall that when the noble Baroness—and I join in welcoming her return—asked the Question of 15th March I also asked about the responsibilities of the CAA under the Airports Act 1986? I was informed that the CAA had not made any representations to the Office of Fair Trading, as has been done by the Bus and Coach Council. Can the noble Viscount say why the CAA, which has a responsibility for the airports and the passengers as well as the bus operators, has not made representations on the issue?

Viscount Davidson

My Lords, I understand that the CAA is awaiting the decision of the Office of Fair Trading in case its regulatory functions under the Airports Act 1986 need to be brought into play.

Lord Monson

My Lords, does the noble Viscount agree that, when compared with the fares for similar bus journeys from airports to the centre of other European capital cities, the bus fares from Heathrow Airport to the centre of London are among the highest in Europe?

Viscount Davidson

My Lords, that is one of the reasons why the Office of Fair Trading is looking into the matter.

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