Primary Batteries (Hansard, 21 December 1976)

§ Mr. John Fraser

As a result of the consultations which the Director General of Fair Trading, at my predecessor's request, held with Mallory Batteries Ltd. and Ever Ready (Holdings) Ltd., both 145W companies have given undertakings which I consider are sufficient to remedy and prevent the adverse effects specified in the report in relation to Mallory Batteries and satisfy the Commission's suggestion that Ever Ready and Mallory should submit information to the Director General at regular intervals to enable their profits and price and discount structure to be kept under review.

Mallory agreed, following discussion with the Director General, to forgo two increases, justifiable under the Price Code, of about 16 per cent. and 19 per cent. in the prices of its photographic batteries. Mallory has now undertaken not to increase the prices of its PX1, RM401R, PX640, PX625, PX675, PX400, PX23, 7H34 and PX14 types of photographic batteries in future except to the extent necessary to cover increases in the cost of producing and supplying these photographic batteries incurred after 1st July 1976. Mallory will, of course, continue to be bound by any statutory price controls.

In addition Mallory has undertaken not to increase the prices of any of its other batteries in order to recover increases incurred before 1st July 1976 in the cost of producing and supplying the photographic batteries I have mentioned. In order that Mallory's trading activities can be kept under review, the company has also undertaken to supply the Director General of Fair Trading with (i) an annual statement of its profits, prices and discounts in respect of sales of mercury batteries and (ii) as and when any increase in the price of its photographic batteries is made, a statement describing the increase together with details of the increases in the costs of production and supply.

Although the Commission did not criticise Ever Ready's prices, it thought that the company's trading activities should also be kept under review. As a result of the Director General's consultations, Every Ready has undertaken to supply him with an annual statement of its profits, prices and discounts in respect of zinc carbon and mercury batteries supplied by the company.

The Director General will be keeping under review the carrying out of the undertakings, copies of which will be placed in the Library.

Following discussion with the Director General, Ever Ready is now printing 146W considerably more information, both on the cartons and on the batteries themselves, on the uses for which the batteries are most suited. For example, HP2 and HP11 type batteries and their cartons are now printed: "for cassette recorders, shavers, toys, gas ignition, heavy duty lighting and other high power uses". This is in accordance with the Commission's suggestion that more guidance should be given to the public on the correct applications for particular zinc carbon batteries. Ever Ready has said that it will continue to consider what further steps might be taken.

The Commission also suggested that both companies should introduce a "use before" date mark on both zinc carbon and mercury batteries. It has become clear from the Director General's lengthy discussions with the companies and independent authorities that the date marking of primary batteries raises several serious technical difficulties. The introduction of the practice would entail heavy capital outlay for the manufacturers which eventually would have to be borne by consumers. I am satisfied that the companies' own internal stock control and distribution systems ensure that there is very little likelihood of a user being sold a "stale" battery and I have therefore decided that the Commission's suggestion on this matter should not be pursued further at this time.