HL Deb 02 February 1993 vol 542 cc81-2

2.52 p.m.

Lord Cocks of Hartcliffe asked Her Majesty's Government:

Whether they will invite the Office of Fair Trading to investigate the prices of low-alcohol and non-alcoholic beers.

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Baroness Denton of Wakefield): My Lords, the Government have no plans for an investigation into the prices charged for non and low-alcohol beers in pubs. The Director-General of Fair Trading will nevertheless consider in the normal way any concerns that might be expressed to him.

Lord Cocks of Hartcliffe

My Lords, I thank the noble Baroness for that reply. Will she reconsider this matter because there is a widespread feeling that conscientious motorists who play the game are being exploited?

Baroness Denton of Wakefield

My Lords, I understand the noble Lord's anxieties, which I share. I believe that anyone with common sense to make the right decision about drinking and driving will use his car to drive away if the motorist feels that he has been overcharged.

Lord Taylor of Gryfe

My Lords, would it be true to say that the price of non-alcoholic beverages in this House is higher than the price of normal beer? Would it not be in the interests of the House to propagate the consumption of non-alcoholic beverages?

Baroness Denton of Wakefield

My Lords, I must confess to a lack of knowledge about the alcoholic drinks in this House. I draw attention to the fact that we had a statement of trading policy from the noble Lord, Lord Peston, last week on the issue.

Lord Stoddart of Swindon

My Lords, is the noble Baroness aware that people in this country cannot understand why they have to pay just as much for non-alcoholic beverages, which do not attract tax and excise duties, as they do for alcoholic beverages, which do attract those taxes?

Baroness Denton of Wakefield

My Lords, I believe that the people of this country well understand that it is for the publican to fix the price of his drinks.

Lord Eatwell

My Lords, is it not clear that, given all the pricing evidence, together with the fact that just three companies now control over 70 per cent. of the market in low alcohol and non-alcohol beers, a complex monopoly, as defined by the Fair Trading Act, is now operating in this industry, meriting consideration by the OFT? Will the Minister explain the inconsistency in government policy in failing to apply the Act in this clear-cut case?

Baroness Denton of Wakefield

My Lords, perhaps I may first welcome the noble Lord, Lord Eatwell, to the Dispatch Box. I am pleased to say that it would appear by the numbers of representatives on the Opposition Benches that they are placing great importance on trade and industry. As regards this issue, what happened as a result of the resolution of the Monopolies and Mergers Commission was that the tied estate order required national brewers to allow their tied customers to buy these drinks from any supplier of their choice. That means that it is a much more open market.