§ Mr. BellinghamTo ask the President of the Board of Trade what pre-bid guidance was given by the Director General of Fair Trading to Airtours plc before its bid for Owners Abroad plc was launched; what importance he attaches to such guidance in his decision on referral to the Monopolies and Mergers Commission; and if he will make a statement.
§ Mr. HeseltineAny pre-bid guidance is given on a confidential basis. We do not therefore comment on whether guidance is given in a particular case. Such guidance is based on the information available at the time, which does not normally include comments by third parties. Where guidance is given, it is the Secretary of State who decides what it should be following advice from the Director General of Fair Trading. Such guidance is not binding on the Secretary of State in his merger reference decision.
§ Mr. Nigel GriffithsTo ask the President of the Board of Trade on what date the Minister for Corporate Affairs withdrew from considering the Airtours bid for Owners Abroad; what reasons were given for this withdrawal; and what part the Minister has played in his Department's handling of the bid since December.
§ Mr. Heseltine[holding answer 1 March 1993]: My hon. Friend the Parliamentary Under-Secretary of State decided on 15 February to stand aside from consideration of whether the Airtours bid for Owners Abroad should be referred to the MMC. It had come to his attention from correspondence that the chairman of Airtours lived in his constituency. Although he was advised that it would have been legitimate for him to continue to take part in the competition decision, he decided not to do so to avoid any possibility of misunderstanding. Prior to receipt of this correspondence he was responsible, with me, for the Department's interest in this as in other merger cases.