Lord INGLEWOODasked Her Majesty's Government:
Whether it is correct that the distribution of new taxicabs for service in London is in the hands of one firm; and if so whether they are satisfied that such a monopoly does not work to the disadvantage of the operators and of the public.
Lord ORAMThere is one main dealer in the London area appointed by the sole United Kingdom manufacturer of vehicles which meet the conditions of fitness under the regulations for taxicabs in the Metropolitan Police District. But there are now no commercial restrictions on dealers elsewhere in the United Kingdom selling taxicabs for use in London or any other part of the country; and there is nothing to prevent other manufacturers competing provided their vehicles meet the required standard. I understand that the Director General of Fair Trading, in accordance with his statutory duties, has been keeping the distribution arrangements in question under review for some time and has recently carried out a detailed investigation. He is satisfied that, on the evidence 1027WA available, an investigation by the Monopolies and Mergers Commission is not warranted.