§ Mr. BayleyTo ask the Secretary of State for Transport what safeguards he intends to apply to avoid(a) passenger and (b) freight train operating companies from establishing a monopoly in a sector of the privatised rail market by acquiring two or more franchises by direct application or as a result of a takeover. [6181]
§ Mr. WattsThe requirements of competition law apply to franchising and the disposal of other BR businesses including freight companies. Qualifying mergers are investigated by the Office of Fair Trading under the Fair Trading Act 1973 and the Secretary of State for Trade and Industry decides whether to make a reference to the Monopolies and Mergers Commission. The Rail Regulator is also required to approve any change of control of a licence holder and in exercising this function will hear in mind the availability of powers under the Fair Trading Act 1973 and the Competition Act 1980 which have been transferred to him.