§ Mr. Maxwell-Hyslopasked the Secretary of State for Prices and Consumer Protection whether she will refer to both the Monopolies Commission and the Director General of Fair Trading the practice whereby some building societies, including the Abbey National Building Society, make the grant of a mortgage contingent upon the property on which the mortgage is secured being insured with a nominated insurance company; and whether she will have examined whether this practice is not both in restraint of trade in restricting competition between insurance companies, and contrary to public policy.
Mr. Alan WilliamsThe Director General of Fair Trading recently reached agreement with the Building Societies Association for new borrowers to be given a choice of insurance company and he is currently in negotiation with the Association about improvements to the agreement.