§ Mr. Teddy TaylorTo ask the Chancellor of the Duchy of Lancaster if he will make a statement setting out the respective powers and responsibilities of his Department, the Monopolies and Mergers Commission and the European Economic Community Commission in relation to the takeover of United Kingdom companies; what will be the impact on these responsibilities of the proposals being considered by the European Economic Community on takeover and merger policy; and if he will make a statement on the implications of these supervisory and control powers for the anticipated bids for GEC.
§ Mr. Atkins[holding answer 16 January 1989]The powers and responsibilities of my Department and the Monopolies and Mergers Commission are contained in the Fair Trading Act 1973. Under that Act the Director General of Fair Trading has a duty to advise the Secretary of State for Trade and Industry on whether a merger or merger proposal should be referred to the MMC for further investigation and report. The EC Commission has power to enforce the competition rules in articles 85 and 86 of the treaty of Rome, which may apply to certain mergers. Regulation of the market conduct of takeovers in the United Kingdom is carried out by the panel on takeovers and mergers. There is currently no provision in EC law in respect of such regulation. Discussions are currently in train on a Commission proposal for an EC merger control regulation, and proposals for an EC takeover directive are due to be published soon. Issues of principle and detail are outstanding. It is too early to assess the implications. Were a bid to be made for GEC, it would be considered under existing procedures, in so far as they may be applicable.