HL Deb 22 October 1997 vol 582 cc717-8

2.48 p.m.

Lord Borrie

asked Her Majesty's Government:

How many responses they have received to the draft Competition Bill.

The Minister of State, Department of Trade and Industry (Lord Simon of Highbury)

My Lords, the Bill has attracted much interest in the commercial world and we are still receiving responses. So far we have received more than 150 replies to the consultation, mainly from business but also from legal practitioners, consumer groups and academics.

Lord Borrie

My Lords, I thank the Minister for that reply. Will he confirm that some of the responses from business have objected to the powers of investigation and the deterrent penalties provided in the Bill, although those featured also in the last government's proposals for a competition Bill? Will the Minister assure the House that the Government will stand firm in maintaining those provisions, which are so essential for combating cartels and other anti-competitive practices?

Lord Simon of Highbury

My Lords, in general terms, I would say that there has been business support for the Bill, largely because a prohibition-based system and closer alignment with the European approach is supported. But it is true that there have been discussions about the level of penalties and that aspect of the enforcement of the regime. However, I confirm that we believe that the powers need to be tough. That is meant to be a deterrent. The Office of Fair Trading needs a big stick on occasions to uncover and deal with the damaging nature of anti-competitive cartels. Therefore, we shall try very hard to make the level of penalties relate to the seriousness of the behaviour, but 10 per cent. of UK turnover is the level that we think appropriate, although that is the maximum. Therefore, I confirm that we are serious about making the regime more competitive.

Lord Clark of Kempston

My Lords, will the Minister not agree that our competitive position, particularly in international trade, is dependent upon the strength of sterling? Therefore, will he agree that any increase in the bank rate will have a detrimental effect on our exports?

Lord Simon of Highbury

My Lords, I am sure that the noble Lord knows that the Question is not about the strength of sterling but about competition. However, I should point out that there are many more bases for the competitiveness of a firm than the exchange rate; namely, the quality of its products, the capacity of its service and the skills of its employees. I could go on but I feel that the noble Lord has had a very good answer to his question.

Lord Burnham

My Lords, I note that the Bill contains conditions which will prevent unwarranted use or disclosure of information obtained under this Bill. Will the same apply to other aspects of government policy?

Lord Simon of Highbury

My Lords, that is a very difficult question to answer in relation to the Bill until we have had a debate. However, I am sure that we shall all come out in agreement.