HC Deb 25 November 1969 vol 792 cc65-7W
Mr. Atkinson

asked the Secretary of State for Employment and Productivity whether she will now make a statement on the action which has been taken to implement the report of the

ployment and the percentage figures to the nearest convenient date in North Shields, South Shields, Wallsend, Whitley Bay, Newcastle-on-Tyne, Jarrow and Gateshead-on-Tyne, respectively.

Mr. Dell

The following is the information:

and footwear, for transport and vehicles, for miscellaneous goods, for services and for all items in the index since October 1964, since July, 1966, since November, 1967, and over the last 12 months to the latest convenient date.

Mr. Dell

The percentage increases were as follows:

Monopolies Commission on clutch mechanisms for road vehicles.

Mr. Dell

When this report was published my right hon. Friend the Member for Grimsby (Mr. Crosland) informed the House that he accepted the report in principle and that officials would discuss it with the Automotive Products group.

These discussions have now been completed and the company have given certain undertakings in implementation of the Commission's findings.

The Automotive Products group have in particular undertaken that they will not impose upon their distribution network any obligation not to handle their competitors' clutches provided that these are clearly distinguishable from the company's own clutches; that they will not recommend a resale price or discount structure other than a maximum enforceable retail price; and that they will not impose upon lining manufacturers any conditions that would influence them against supplying other clutch manufacturers.

I am arranging for a copy of the full text of these undertakings to be placed in the Library of the House.

In addition to these formal undertakings, which have already been put into effect, the Automotive Products group have agreed with my Department on appropriate arrangements for surveillance over the company's price policy on reference goods and the profits to which it gives rise. Automotive Products have ceased to issue their list of distributors for whom they recommended various levels of discount. The company have also informed me that it will be their policy in future, wherever possible, to negotiate their purchase of clutch linings at a single price whether they are for use in initial equipment or in replacement clutches.

I am sure that these measures will help smaller manufacturers of clutches, and introduce greater flexibility into the distribution of clutches without impairing the efficiency for which the Automotive Products group were commended by the Monopolies Commission.