Marina Berths: Control (Hansard, 31 January 1991)

§ The Minister of State, Department of Trade and Industry (Lord Hesketh)
My Lords, the Office of Fair Trading has received a number of representations on this issue. The matter is currently being considered and the Director General of Fair Trading will in due course advise my right honourable friend the Secretary of State for Trade and Industry whether there is any case for a monopoly reference of marina services.

§ Lord Greenway
My Lords, I am grateful to the Minister for that reply which will give some comfort to the many yachtsmen who are disturbed about the current situation. However, is it not a fact that the Fair Trading Act 1973 specifically excluded investigation into port activities? Are the Government not aware that today marinas are far more prevalent than they were then? Are they further aware—this is a more important consideration—that one single company now controls nearly 50 per cent. of marina berths in the Solent area and, I believe, up to 100 per cent. of berths in the Torbay area?

§ Lord Hesketh
My Lords, under the terms of the Fair Trading Act 1973 monopoly situations in relation to the supply of goods or services may be referred to the Monopolies and Mergers Commission. The director general will consider in his advice on this matter whether the provision of marina berths constitutes a supply of goods and services.

§ Lord Harvington
My Lords, does my noble friend realise that there is tremendous anxiety among the ever growing body of people who use these ports that the Monopolies and Mergers Commission should take this matter seriously? The situation which obtains at present cannot be allowed to continue.

§ Lord Hesketh
My Lords, I should point out to my noble friend that the matter is being considered at the moment by the Office of Fair Trading. There has been no recommendation to my right honourable friend the Secretary of State to refer the matter to the Monopolies and Mergers Commission. One of the reasons for the investigation is to discover the facts with regard to some of the details that my noble friend has referred to.

§ Baroness Platt of Writtle
My Lords, is my noble friend aware of the different charges that apply in the UK and on the Continent respectively? Nightly charges for berths here can be almost double those in France and Holland and annual charges in the UK may be more than double those levied on the Continent. If this matter is not referred to the Monopolies and Mergers Commission, people on 795 modest incomes will find small boat sailing beyond their means. Does my noble friend agree that that is a very undesirable prospect for a maritime nation?

§ Lord Hesketh
My Lords, the Government are certainly aware that different prices are charged in different places on the south coast and, as my noble friend pointed out, that there is a difference between the prices charged in northern France and on the south coast. It is possible that there is greater availability of marina berths on the Continent than on the south coast of England and that that is one reason for the higher prices.

§ Lord Williams of Elvel
My Lords, is there another way of tackling this problem, which noble Lords recognise? Is there not a case for saying that because charges are high on the south coast and there is a concentration of ownership of marina berths there could be an unregistered restrictive practice? Is it not also the case that the Director General of Fair Trading has the right to refer such a practice to the competition court?

§ Lord Hesketh
My Lords, the noble Lord, Lord Williams, may be correct, However, I am sure that he will not expect me to anticipate the deliberations of the director general.

§ Lord Mowbray and Stourton
My Lords, will my noble friend draw the Government's attention to the fact that the Lymington harbour commissioners, a small non-profit making body, are being threatened by the Crown Estate Commissioners with an increase of 6,500 per cent.? Is that legal under the 1961 Crown Estate Act under which the commissioners are not allowed to ask more than the going rate when they are in a monopoly position?

§ Lord Hesketh
My Lords, I am, as always, grateful to my noble friend for his contribution. However, on this occasion I suggest that that is another question. If he were to put down such a Question I should be more than happy to answer it.

§ Lord Williams of Elvel
My Lords, is not the Minister underestimating the powers and authority of a Minister of the Crown, which, I believe, is what he is until further notice? Is he not perfectly entitled to draw the attention of the director general to the possibility of there being in this instance an unregistered restrictive practice?

§ Lord Hesketh
My Lords, as I said earlier to the noble Lord, Lord Williams, he may well be correct and that is a matter which is being considered by the director general. He would not expect me to predict the director general's decision.

§ Lord Lucas of Chilworth
My Lords, does my noble friend agree that the Fair Trading Act might be amended to protect the leisure industry in port facilities, so opening such activity to greater competition? Does he agree also that that would be in the spirit of what this Government want to do?

§ Lord Hesketh
My Lords, Schedule 7 of the Fair Trading Act lists services, including port facilities, 796 which are outside the powers of the Director General of Fair Trading to refer to the MMC. However, my right honourable friend the Secretary of State could make a reference if necessary. That is why in this particular case the director general will report to my right honourable friend the Secretary of State.