§ Mr. Ronald Atkinsasked the President of the Board of Trade whether he will make a statement on the report of the Monopolies Commission on the supply of cellulosic man-made fibres.
§ Mr. CroslandThe report was published this morning. The Commission have found that monopoly conditions, as defined in the legislation, prevail in the supply of cellulosic man-made fibres by virtue of the proportion which is supplied by Courtaulds.
The Commission concluded that Courtaulds' monopoly was against the public interest. They also concluded that Courtaulds' practice of supplying fibres to some customers on preferential terms, and its regulation of imports through its arrangements with E.F.T.A. producers 61W operate and may be expected to operate against the public interest, and that Courtaulds' practice of extensive participation in the textile industry may be expected to operate against the public interest.
By way of remedy, the Commission recommend that the tariff on cellulosic fibres should be reduced, and that Courtaulds should not make any arrangements with overseas producers to nullify the effect of the reduction. The effect of the tariff reduction should be reviewed after a year. The Commission also recommend that Courtaulds should sell cellulosic fibres only at its published list prices; that it should bring to an end those aspects of its arrangements with E.F.T.A. producers which restrict competition; and that it should not be allowed to make further acquisitions in the textile industry (including wholesale and retail distribution) without the permission of the Board of Trade if its share of capacity in any particular sector would exceed a limit to be set by the Board.
Before coming to a conclusion on the Commission's recommendations on the level of the tariff, I would like to examine the considerations to which the Board of Trade are required to have regard by Section 1 of the Import Duties Act, 1958. In accordance with the Board of Trade's normal procedure, I am instituting an immediate review of the duties on cellulosic fibres at which all interested parties, including Courtaulds, will be invited to express their views. The recommendations of the Monopolies Commission will, of course, be given full weight in this review.
I propose to discuss with Courtaulds the Commission's other recommendations. In particular, I shall wish to consider the recommendation about Courtaulds' future acquisitions in the light of the Government's policy of promoting desirable rationalisation in the textile industry. I shall make a further statement at a later stage.