HC Deb 12 March 1973 vol 852 cc239-40W
Mr. Mason

asked the Secretary of State for Trade and Industry (1) if he will make a statement on the most recent ruling given by the European Court of Justice on the beer supply system to a chain of tied houses; and how this ruling will affect the monopoly situation in the British brewing industry;

(2) if he will list the provisions of the Treaty of Rome that relate to the beer supply system, and indicate the changes that will be needed in the system operated by British brewers in relation to tied houses in order to bring it into conformity with the requirements of the treaty.

Sir G. Howe

Administration of Article 85 of the Treaty of Rome is a matter for the European Commission. The Commission will no doubt take into account any relevant ruling of the European Court and any other relevant matters in considering the tied-house system of beer supply in the Community.

Mr. Mason

asked the Secretary of State for Trade and Industry if he will list the individual brewery companies he has met to discuss the implications of the Monopolies Commission report on beer supply; when he will be in a position to announce his proposals for changes in the present licensing and supply system; and if he will make a statement.

Sir G. Howe

The Brewers' Society has usually represented the brewing industry in discussions about the Monopolies Commission's report on the supply of beer. My officials have in addition had contacts on matters arising from the Commission's report with Allied Breweries, Bass Charrington, Greenall Whitley and Whitbread. My right hon. Friend the Home Secretary is not yet able to announce his views on the report of the Erroll Committee on Liquor Licensing which was published only in December 1972.

Mr. Mason

asked the Secretary of State for Trade and Industry if he will institute an inquiry into the consequences of regional employment and consumer choice of the projected closure of 14 regional breweries as a result of the growth of monopolies in the brewing industry.

Mr. Anthony Grant

I am seeking further information and hope to be in a position to answer this Question shortly.

Mr. Mason

asked the Secretary of State for Trade and Industry what changes there have been in the monopoly position of the brewery industry since it was reported on by the Monopolies Commission in 1969.

Sir G. Howe

The Commission found that monopoly conditions prevailed in the supply of beer because at least one-third of the beer supplied for retail sale in the licensed premises in the United Kingdom was supplied by persons who restricted competition in that, as owners of licensed premises, they prescribed the brands of beer which could or could not be sold in those premises. No brewery company or group of interconnected brewery companies individually had a monopoly through supplying one-third of the market. This is still the case. Though some major brewery companies have increased their share of the market somewhat since the Commission reported none is believed to supply more than about one-fifth of the market for beer in the United Kingdom.

Mr. David Clark

asked the Secretary of State for Trade and Industry if he will revise the criteria governing references to the Monopolies Commission so that all bids within the brewery sector will be referred for scrutiny.

Sir G. Howe

I am satisfied that no changes are needed other than those provided by the Fair Trading Bill at present before Parliament. I shall continue to examine carefully all brewery mergers, as others falling within the scope of the relevant legislation.