§ Mr. Alexander W. Lyonasked the Secretary of State for Prices and Consumer Protection whether he will make a statement on the competitive effects of the differences in the levels of discounts which manufacturers and distributors grant to certain retailers.
§ Mr. MaclennanThe Government have felt for some time that we need more information about the extent and effects of the granting of special discounts to some retailers only. The Monopolies and Mergers Commission have referred to this issue in a number of recent reports. My right hon. Friend has, therefore,120W decided to ask the Commission to investigate the general effect on the public interest of the practice of some retailers obtaining larger discounts or similar benefits than those available to other retailers, where the differences are not wholly attributable to savings in the suppliers' costs. This reference, which is being made today under Section 78(1) of the Fair Trading Act, will enable the Commission to undertake a thorough and independent investigation of the subject.