HC Deb 01 July 1981 vol 7 cc376-7W
Mr. Mellor

asked the Secretary of State for Trade whether he will list the fatal accidents to aircraft on the United Kingdom commercial register, other than third party accidents from 1 January 1977 to date, stating in each case the numbers of fatalities and the name of the airline operator involved.

Mr. Eyre

Following is the information:

to Independent Poster Sales Limited has strengthened the position of British Posters and its members and restricted competition, to the detriment of other companies and the public interest;

(3) they have inhibited the adjustment of British Posters Limited's pre-selected campaigns in composition and flexibility to meet the requirements of clients.

The commission has also found that a complex monopoly situation exists in favour of the members of the British Poster Advertising Association and the Solus Outdoor Advertising Association Limited, by virtue of the operation of certain agreed standards of conduct. It has concluded that this complex monopoly, in the form in which it existed at the time of the reference, operated against the public interest in that the standards of conduct, which provided that members of the associations should not bid or negotiate for, or interfere with, sites occupied by a fellow member of either association, substantially restricted competition between contractors in the acquisition of new sites. The wording and the interpretation of the standards were substantially changed in March 1980. However, the commission considers that though the practical effects of the revised version of the standards are not yet clear, the wording is so imprecise and obscure as to make the provision open to abuse and, in its view, likely to have some effect in restricting competition.

In making recommendations as to what action should be taken for the purpose of remedying or preventing the adverse effects it had identified, the commission noted that certain of these adverse effects arose from the existence of British Posters in its present form. It was satisfied that it would not be possible to amend its constitution whilst retaining its existing membership, or a broadly similar membership, without retaining the substance of these adverse effects. This was because the width of the present membership ensured that it must be the dominant supplier of pre-selected campaigns—campaigns or packages made up by contractors in advance of inquiries by customers and sold as a block. It considered, moreover, that a joint selling organisation of this kind could not operate efficiently and economically unless information on, and views of, the state and prospects of the market and on selling and promotion policies were exchanged between its member companies, covering a very large part of the total market. The commission considered that this exchange must influence the commercial practices both of British Posters and of its members, including the general level at which prices are set. It said that the most significant detriments to competition in the present structure of the industry derived from the fact that both the largest companies were members of British Posters.

The commission has recommended, in the light of these considerations and of the adverse effects which it has identified, that British Posters Limited should cease to exist and should not be reformed. It has indicated ways in which, in its view, buyers might, in the event of British Posters ceasing to exist, obtain, and suppliers be able to offer, packages of sites without giving rise to adverse effects on competition and on the public interest.

On the standards of conduct of the association, the commission doubts the need for any agreed standard simply intended to commit members to abide by the law; that is, to ensure that a member does not induce a site owner to breach his contract with another member. However, the commission considers that if a standard does remain, its wording should be clear and precise on this point.

I welcome this important report by the commission and I accept its recommendation that British Posters should cease to exist and should not be reformed. The Government will be considering urgently the best means of achieving this and will, if necessary, be ready to make an order under the Fair Trading Act 1973. With regard to the standards of conduct of the two trade associations, I am asking the Director General of Fair Trading to seek an undertaking from the associations that they will delete and not reintroduce the clause requiring members not to bid or negotiate for or interfere with any site in the physical occupation of another member where the other member has a valid agreement in respect of the site and no legal notice finally terminating that agreement has been given to the other member.