HC Deb 03 August 1976 vol 916 cc691-2W
Mr. Ioan Evans

asked the Secretary of State for Prices and Consumer Protection whether the Director General of Fair Trading has completed his review of the voluntary undertakings given by the oil companies for implementation of the Monopolies Commission 1965 report on the supply of petrol to retailers.

Mr. John Fraser

After consulting all the parties having an interest in the supply of petrol to retailers and after carefully considering all the evidence brought to light in the review the Director-General has proposed a number of changes to the existing undertaking. A unified document has been prepared which incorporates the 1968 as well as the current amendments.

The undertakings on the leasing and licensing of company premises have been substantially revised and the new amendments provide that:

  1. (i) No lease or licence agreement will be terminable solely on the ground that in any specified period the tenant or licensee has not purchased a certain quantity of petrol for resale at the station in question or has not sold a certain quantity there.
  2. (ii) A short-term licence issued following the death or insolvency of a tenant or licensee shall not exceed six months' duration.
  3. (iii) Holding over of expired leases or licences shall not exceed three months.
  4. (iv) Renewal or further grant of a licence shall be on terms that are fair and reasonable.
  5. (v) In the case of certain companies which issue long-term licences—three years or more—as opposed to leases, to the occupants of company owned sites disputes about termination or non-renewal of such licences shall be subject to an arbitration scheme to be approved by the Director General.

The arbitration scheme is still under discussion with the companies concerned and will be implemented when final agreement is reached. Other undertakings will continue in force with only minor technical modification to take account of the passage of time since the report was published.

My right hon. Friend has accepted the Director General's proposals and the companies concerned have given undertakings to her on the lines of the revised text which will be printed inTrade and Industry on 13th August. The undertakings will take effect a week later.

I am placing copies of these undertakings, together with a list of those companies which have agreed to be bound by them, in the Library of the House.