HC Deb 20 February 1995 vol 255 cc31-2W
Mr. Cousins

To ask the President of the Board of Trade when he sought from Trafalgar House assurances as to the continued employment of sufficient staff at Northern Electric.

Mr. Jonathan Evans

No such assurance has been sought from Trafalgar House.

Mr. Cousins

To ask the President of the Board of Trade when he received the advice of the Director General of Fair Trading on the possible reference of the Trafalgar House bid for Northern Electric.

Mr. Jonathan Evans

The advice was received on 2 February 1995.

Mr. Cousins

To ask the President of the Board of Trade on what date he or his representatives met Trafalgar House plc to discuss assurances in their bid for Northern Electric; whether representatives of the Director General of Electricity Supply were present; and whether Northern Electric, the takeover panel and the Office of Fair Trading were informed of this meeting.

Mr. Jonathan Evans

Officials from my Department and representatives of the Director General of Electricity Supply met representatives of Trafalgar House on the afternoon of 13 February to discuss such assurances. The Office of Fair Trading was aware of the discussions. Neither the takeover panel nor Northern Electric was informed by my Department about the meeting.

Mr. Cousins

To ask the President of the Board of Trade what is his statutory authority(a) for asking Trafalgar House to ensure that sufficient financial and management resources and other facilities were available to carry out the obligations of Northern Electric and (b) to secure compliance with such an assurance.

Mr. Jonathan Evans

The assurances obtained from Trafalgar House are not based in statute. If Trafalgar's bid for Northern Electric succeeds, the Director General of Electricity Supply—DGES—will monitor Northern Electric's behaviour, under Trafalgar's ownership, in the course of his normal regulatory duties. In doing so, the DGES will have available his usual regulatory powers, including the power to make an MMC reference under the Electricity Act 1989 and the monopoly provisions of the Fair Trading Act 1973, if appropriate.