HC Deb 11 December 1981 vol 14 cc507-8W
Mr. Alan Clark

asked the Secretary of State for Trade whether he will make a statement on the report by the Monopolies and Mergers Commission on the proposed transfer of the Berrow's Organisation Ltd. to Reed International Ltd.

Mrs. Sally Oppenheim

In its report published on 13 August the Monopolies and Mergers Commission concluded that the transfer by News International Limited of the 45 newspapers owned and published by The Berrow's Organisation Ltd. to Reed International Ltd. might be expected to operate against the public interest. The commission concluded, however, that if Reed were not the owner of West of England Newspapers Ltd. or if the proposed transfer did not include Berrow's Taunton-based newspapers, the transfer might not be expected to operate against the public interest.

Single person Married man without children
Tax year Threshold at current prices Threshold at 1949–50 prices index Threshold as percentage of average manual earnings Threshold at current prices Threshold at 1949–50 prices index Threshold as percentage of average manual earnings
£ 1949–50=100 Per cent. £ 1949–50=100 Per cent.
1979–80 1,165 119.2 21.9(22.2) 1,815 116.3 34.1 (34.5)
1980–81 1,375 121.2 22.6 (22.5) 2,145 118.5 35.3 (35.1)
1981–82 1,375 108.2 20.3 (20.2) 2,145 106.0 31.7 (31.5)

I announced upon publication of the report that my right hon. Friend had accepted the commission's conclusions and had accordingly refused his consent to the transfer of Berrow's Taunton Group of newspapers. Since that announcement, Reed has given my right hon. Friend the following assurances:

  1. (i) It will use its best endeavours to dispose of WEN or of the newspapers currently owned by that company so that within one year of its acquisition of Berrow's, it ceases to be a proprietor in relation to any WEN newspapers.
  2. (ii) During the period when Reed temporarily owns both WEN and Berrow's, there will be no consultation or co-operation on trading matters between the management of these two subsidiaries.

These assurances meet the substance of the concern expressed by the commission over the proposed transfer. My right hon. Friend has accordingly consented to the transfer of the 45 newspapers owned by Berrow's and has laid a copy of his consent before the House. In the interests of safeguarding the future of WEN, however, he has indicated to Reed that he does not regard the first assurance as applying to any WEN newspaper which Reed is unable to sell to another proprietor prepared to continue it as a separate newspaper.