HC Deb 13 March 1995 vol 256 cc388-9W
Mr. Hardy

To ask the President of the Board of Trade (1) if he will consider the increased carriage charges faced by retail newsagents from monopoly supplying wholesalers;

(2) what representations he has received about the examination by the Monopolies and Mergers Commission of the newspaper industry in respect of carriage charges.

Mr. Jonathan Evans

[holding answers 9 March 1995]: The National Federation of Retail Newsagents has raised this matter in correspondence, as has Lekkerland UK.

The MMC report on the supply of newspapers in England and Wales gave no adverse public interest finding in respect of carriage charges, and no power arose to act on them.

However, a reference to carriage charges was included in the voluntary code of practice to govern the supply of national newspapers agreed with the industry following publication of the MMC report., This reference ensures that such charges are not used as a means of circumventing the prohibition on refusal to supply, by making supply economically unattractive to new applicants.

If new retailers feel that their carriage charges are incorrect, they should take the matter up in the first instance with the wholesaler. If this does not resolve the dispute the retailer should make use of the arbitration procedure set out in the code of practice.

Mr. Bill Michie

To ask the President of the Board of Trade if he will reconsider the matter of carriage charges in the newspaper trade following the recent increases.

Mr. Jonathan Evans

The Monopolies and Mergers Commission's 1993 report on the supply of newspapers in England and Wales included no adverse public interest findings in respect of carriage charges, and therefore no power arose to act on them.

However, a reference to carriage charges was included in the voluntary code of practice to govern the supply of national newspapers, agreed with the industry following publication of the MMC report. This ensures that such charges are not used as a means of circumventing the prohibition on refusal to supply by making supply economically unattractive to new applicants. If new retailers feel that their carriage charges are incorrect, they should take the matter up in the first instance with the wholesaler. If this does not resolve the dispute, the retailer should make use of the arbitration process set out in the code of practice.

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