HC Deb 16 July 1990 vol 176 cc384-5W
Mr. Warren

To ask the Secretary of State for Trade and Industry what powers exist under European Economic Community related legislation for officials of the European Commission to enter and search the premises of United Kingdom companies.

Mr. Douglas Hogg

[holding answer 4 July 1990]: Article 213 of the EEC treaty permits the Commission to collect any information and carry out any checks required for the performance of its tasks within the limits laid down by the Council. In practice this provision is never used.

The following Community instruments covering matters within the Secretary of State's areas of responsibility grant the Commission powers to conduct investigations on the premises of United Kingdom companies for certain specified purposes:

  • Council Regulation No. 17 (1962) implementing articles 85 and 86 of the Treaty.
  • Council Regulation (EEC) No. 1017/68 applying rules of competition to transport by rail, road and inland waterway.
  • Council Regulation (EEC) No. 4056/86 laying down detailed rules for the application of Articles 85 and 86 of the Treaty to maritime transport.
  • Council Regulation (EEC) No. 3975/87 laying down the procedure for the application of the rules of competition of undertakings in the air transport sector.
  • Council Regulation (EEC) 4253/88 concerning the co-ordination of the activities of the Structural Funds.
  • Council Regulation (EEC) No. 4064/89 on the control of concentrations between undertakings. [Enters into effect on 21 September 1990].

Mr. Teddy Taylor

To ask the Secretary of State for Trade and Industry if he will make a statement setting out the powers which European Community inspectors have to enter business premises and to seize or study papers; and if he will publish a note of guidance on these to issue to British-based companies.

Mr. Douglas Hogg

[holding answer 5 July 1990]: My reply to my hon. Friend the Member for Hastings and Rye (Mr. Warren) today sets out EC legislation within the Secretary of State's responsibility which gives the Commission power to inspect business premises. Companies should consult their legal advisers on Community powers in individual cases.

Mr. Teddy Taylor

To ask the Secretary of State for Trade and Industry if he will make a statement setting out the difference in the powers of United Kingdom-based company inspectors and European Community inspectors in relation to the entering of business premises and the seizure of documents.

Mr. Douglas Hogg

[holding answer 5 July 1990]: In the competition area, where we can give a reasonable comparison, the main difference is that under both United Kingdom and EC law authorities can require the production of documents and the giving of oral evidence, but only under EC law can authorities demand entry to premises.

Mr. Teddy Taylor

To ask the Secretary of State for Trade and Industry who supervises office searches in the United Kingdom by European Community inspectors; and if any limits are in general placed on the extent of the papers and documents which may be seized or studied.

Mr. Douglas Hogg

[holding answer 5 July 1990]: Detailed working rules on office searches by European Community inspectors will be set by the Commission within the framework of the Community regulations which permit such searches. It is the practice for an official of the Office of Fair Trading to accompany Commission officials conducting investigations in the United Kingdom whenever possible.