HC Deb 23 June 1969 vol 785 cc216-7W
Mr. Whitaker

asking the President of the Board of Trade whether he has completed his review of the arrangements agreed two years ago with Unilever and Procter and Gamble following the publication of the Monopolies Commission Report on the Supply of Household Detergents; and whether he will make a statement.

Mr. Crosland

My right hon. Friend the Member for Battersea, North (Mr. Jay) informed the House in April 1967 of the arrangements agreed with Unilever and Procter and Gamble. The main elements in these arrangements were that the two companies undertook that they would make available a range of washing powders at prices 20 per cent. less than those of existing products, and that they would not raise the prices of any of the products on which the Monopolies Commission had reported for a period of two years. My right hon. Friend announced that the arrangements would be formally reviewed at the end of two years. I have now completed this review.

The companies have agreed to continue to make available the present range of reduced price washing powders at a price 20 per cent. below that of their other products of a similar type. These powders have in total enjoyed over the past two years an average market share of about 20 per cent. The reduced price soap powders have been relatively less successful than the others, but both companies have undertaken that they will not withdraw these brands from the market without prior discussion with my Department. I have in turn informed the companies that I will keep watch on the development of the market, particularly in the light of the progress made by the new enzymatic detergents, and will wish to discuss with them at a future date the possibility of making available reduce price enzymatic detergents.

I have not asked the companies to renew their undertakings to maintain a price standstill on household detergents. With the exception of small increases to cover increased costs directly attributable to devaluation, the manufacturers' prices of these products have remained unchanged for four years. Proposals for increases in the prices of household detergents will, however, remain subject to notification to my Department under the voluntary early warning arrangements and will be considered against the criteria of

1965 1966 1967 1968
Jan. to June July to Dec. Jan. to June July to Dec. Jan. to June July to Dec. Jan. to June July to Dec.
Hire Purchase Order
Number of prosecutions initiated 4 4 3 4 4 2 3 2
Of which:
Resulted in Convictions 4 3 2 4 3 2 2 2
Hiring Order
Number of prosecutions initiated 1 2 1 3 1 1 1 1
Of which:
Resulted in Convictions 1 2 1 3 1 1 1 1
Six cases, all resulting in convictions, involving offences under both sets of Orders are included in both tables.