§ Mr. Spearingasked the Minister of Agriculture, Fisheries and Food, what progress he has made concerning plans to rationalise the cane sugar refining industry; and if he will make a statement concerning his approach to a future monopoly in this industry.
§ Mr. John SilkinThe Government's general approach to the problem of rationalising the cane sugar refining industry was set out in the reply given by my predecessor to my hon. Friend the Member for Liverpool, Scotland Exchange (Mr. Parry) on 4th August 1976.—[Vol. 916, c.778–80.] He emphasised the Government's concern that reorganisation should not only produce an efficient and well-organised industry, but also pay due regard to the need to sustain employment.
Discussions are now proceeding with Tate and Lyle, following their acquisition 103W of a controlling interest in Manbre and Garton. The Government intend that there should be a full opportunity for representatives of the employees, and other interested parties, to state their views and for these to be taken fully into account before any final decisions are taken. Meanwhile the company has made it clear that there is no question of closing any refinery before the end of September 1977 at the earliest.
In deciding not to refer the proposed acquisition of Manbre and Garton to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973 my right hon. Friend the Secretary of State for Prices and Consumer Protection took account of certain undertakings given by Tate and Lyle. These were that they would, for so long as customers require, produce and offer for sale in the United Kingdom, at fair prices, each product in the complete range of sugar, starch and starch sweeteners at present produced by the two companies; recognise any special terms and conditions on trade and service enjoyed by customers of Manbre and Garton in the past; and maintain for three years as a separate identifiable business and separate profit centre the starch and starch sweeteners part of Manbre and Garton. The company has also agreed to set up a special unit to monitor any customers' complaints and to audit prices, service and quality; and an independent committee is to be established to look into complaints referred to it by the company's customers and to report periodically to my right hon. Friend the Secretary of State for Prices and Consumer Protection and myself. These arrangements offer valuable safeguards for the interests of users of sugar and starch products in the United Kingdom.