§ Mr. Joplingasked the Secretary of State for Trade and Industry when he expects the report of the Monopolies Commission on restrictive practices in relation to the supply of professional services to be published; and whether he will make a statement.
§ Mr. John DaviesThe report was published this morning. The Commission has assembled in this report a wide range of factual information about the professions, as well as a body of general considerations which it regards as relevant to the assessment of the merits of those professional practices which were referred to it. It takes the view that, without more investigation than could be undertaken in a general inquiry of the sort it was asked to 133W make, it would not be possible to say how far the practices of any particular profession were justifiable in the light of those considerations. It has not, therefore, reached a final judgment either upon the specific practices of any profession or on the general effect of the practices on the public interest.
The Commission finds that there is no reason to suppose that all restrictions at present operated by professional bodies are fully justifiable by reference to the considerations it has set out. The Commission makes two recommendations to ensure that those restrictions which operate against the public interest are identified. First, it thinks that the professions themselves should examine their restrictive practices in the light of the report with a view to abolishing or amending them, as necessary. Secondly, in order to supplement the guidance given in the report about the desirability of specific types of restriction, it suggests that the Department responsible should refer in close succession to the Monopolies Commission or its successor body the supply of particular professional services in which restrictive practices are known to prevail so that the Government could have power to deal by Order with any which might be found to be against the public interest.
I welcome the report not only as a significant contribution to thinking about the economic consequences of those professional practices with which it deals specifically, but also because its observations about the criteria, both economic and otherwise, to be used in assessing the balance of advantage to the public interest may well be relevant to collective restraints on the provision of services in general.
With regard to the Commission's two specific recommendations, I shall be writing to all the professional associations which gave evidence to the Commission, or which are mentioned in the report, inviting them to re-examine their professional practices in the light of its findings and to let me know within six months of any modifications they are proposing to make to them in consequence. When I have received the observations of the professions I shall decide what further action should be taken on the Commision's other recommendation that I should make references of particular 134W professional services to the Monopolies Commission.