§ Mr. Wellbelovedasked the President of the Board of Trade whether he will now announce the action to be taken on the Monopolies Commission's Report on the supply of beer.
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§ Mr. CroslandI have already announced that the Monopolies Commission has concluded that the monopoly conditions which prevail in the supply of beer for retail sale on licensed premises operate, and may be expected to operate, against the public interest; and that by way of remedy it has recommended that the licensing system in England and Wales should be substantially relaxed.
The conclusion and recommendation of the Commission's report require the Government to consider both the economic and the social aspects of the arrangements under which the retail sale of beer and other alcoholic drink is at present conducted. In my view, the Commission have made out a strong case on economic grounds for relaxing the existing limitation of competition which results from the tied-house system. But the Commission in seeking a remedy for the economic defects of the system has recommended a change in the licensing law of a far reaching character which calls for a thorough examination of the important social implications. I am in consultation with my right hon. Friends and a further statement will be made in due course on this aspect of the matter.
We shall, of course, wish to discuss this general question with the brewers, and we may wish to consider with them whether there is any other action which might be taken to mitigate the undesirable features of the tied-house system.