HL Deb 20 October 1998 vol 593 c1384

(". In section 83 of the Fair Trading Act 1973—

  1. (a) in subsection (1), omit "Subject to subsection (1A) below"; and
  2. (b) omit subsection (1A) (reports on monopoly references to be transmitted to certain persons at least twenty-four hours before laying before Parliament).").

Lord McIntosh of Haringey

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 44. I shall speak also to Amendments Nos. 103, 106 and 107. These amendments are intended to reduce the risk of leaks of market sensitive information, and to protect the interest of companies and their investors, including the many individual members of the public who are shareholders.

The amendments repeal Section 83(1A) of the Fair Trading Act 1973 which requires that copies of a Monopolies and Mergers Commission monopoly report must be sent to every person named in the report as a person in whose favour a monopoly situation exists at least 24 hours in advance of the report being laid before the House and published.

We believe that monopolists—the word is not intended necessarily as being derogatory; it is the way it is described in legislation—named in reports should have some prior warning of the publication of reports in order to prepare themselves to respond to press inquiries. For that reason we intend that named monopolists should be told the date and time of publication on the day before. In addition, immediately after publication of the report, they will receive a copy of the press notice announcing the Secretary of State's decision. They will also be able to collect a copy of the report from officials. Those steps will bring the practice for monopoly reports into line with that for merger reports which has worked perfectly satisfactorily.

By introducing these measures at the same time as repealing the duty in Section 83(1A) of the Fair Trading Act, we believe that we are striking the right balance between the needs of individual named monopolists and the needs of the market and investors regarding the security of price sensitive information.

Moved, That the House do agree with the Commons in their Amendment No. 44—(Lord McIntosh of Haringey.)

On Question, Motion agreed to.