Funerals (Hansard, 1 December 1997)

§ Mr. Caplin
To ask the President of the Board of Trade how many people have brought pre-paid funerals in the last two years. [17940]

§ Mr. Nigel Griffiths
On the basis of information obtained during consultation it is estimated that to date up to 200,000 pre-paid funerals have been sold in the United Kingdom.

§ Mr. Chidgey
To ask the President of the Board of Trade, pursuant to her answer of 19 November 1997,Official Report, column 191, if she will list the undertakings given by (a) the Co-operative Wholesale Society and (b) Service Corporation International to the Monopolies and Mergers Commission, together with the dates by which (i) each undertaking was to be carried out and (ii) each undertaking was carried out. [18036]

§ Mr. Nigel Griffiths
[holding answer 27 November 1997]: On 7 December 1987 the then Secretary of State for Trade and Industry accepted undertakings from the Co-operative Wholesale Society Limited (CWS) that it would before 21 October 1988 (or such later date as the Secretary of State might agree) sell either all the funeral businesses acquired from House of Fraser plc, or alternatively the businesses in those areas affected by the merger, as going concerns to a person other than a CWS subsidiary or certain retail societies. CWS also undertook to keep the Director General of Fair Trading (DGFT) informed as to its progress in divesting itself of the businesses. The four businesses situated in the areas most affected by the merger (Aberdeen, Falkirk and Perth) were sold by CWS on 22 April 1988.
CWS also undertook to notify the DGFT before it acquires any enterprise carrying on the business of a funeral undertaker in Scotland; and that it will not refuse to supply coffins on normal commercial terms to any funeral undertaker in Scotland. These undertakings are on-going.
On 18 December 1996, the then Minister for Corporate and Consumer Affairs accepted undertakings given by Service Corporation International (SCI). SCI undertook, within six months of the date of the undertaking: (a) to reduce its market share to no more than 25 per cent. by selling funeral directors' businesses in Brighton and Hove, Camberwell, Chiswick, Eastbourne and Sidcup (in relation to Chiswick, the sale of either of two specified SCI branches in that locality would be deemed to comply with this undertaking); 91W (b) where it had a market share of more than 25 per cent. before the merger, to sell the funeral directors' businesses it acquired from Plantsbrook Group plc in Battersea, Bromley, Crawley, Fulham and Putney;
The divestment required under (a) and (b) took place on 4 April 1997.
SCI further undertook: (c) not to acquire any further funeral directing businesses within the ten localities without the DGFT's prior approval; (d) to disclose its ownership of funeral directing businesses prominently at the premises, in documentation given to customers, and in all advertisements or other promotional material used in connection with those businesses (for those SCI funeral businesses situated in the area examined by the MMC); (e) to display prominently details of competing crematoria at every SCI funeral directing branch in the area of an SCI crematorium; (f) not to discriminate in the prices charged for crematorium services between its own and other funeral directing businesses; and? (g) to provide customers with a list of prices of competing crematoria where, in the area examined by the MMC, an SCI funeral directing business is situated within 20 miles of an SCI crematorium.
Undertakings (c) to (g) are on-going.
On 3 November 1997 I accepted a variation to the undertakings given by SCI to allow it to acquire Birkbeck Securities Ltd. (Birkbeck) on condition that SCI disposed of the funeral directing business of Birbeck's subsidiary, H. Copeland & Son Ltd., within six months. That business has now been sold by SCI.
I have placed copies of the relevant press notices with undertakings attached in the Library of the House.

§ Mr. Chidgey
To ask the President of the Board of Trade, pursuant to the answer of 19 November 1997,Official Report, column 192, if she will list the representations she has received relating to the marketing and selling of pre-paid funeral plans and place copies in the Library. [18043]

§ Mr. Nigel Griffiths
[holding answer 27 November 1997]: I have received representation on the marketing and selling of pre-paid funerals from:
Scottish Consumer Council;Service Corporation International;Federation of Small Businesses;Society of Allied and Independent Funeral Directors;National Association for Pre-Paid Funeral Plans.
I am still receiving representations. When the process is complete, I will publish a list of these in the Library.

§ Mr. Chidgey
To ask the President of the Board of Trade if she will(a) establish a funeral services ombudsman, (b) establish a single code of practice for the supply of funeral services and (c) introduce statutory regulation of pre-paid funeral plans. [18049]

§ Mr. Nigel Griffiths
[holding answer 27 November 1997]: 1 refer the hon. Member to the answer I gave to my hon. Friend the Member for Hove (Mr. Caplin) today. I am considering a number of possible options for the regulation of pre-paid funerals as a priority. I shall consider options for improved consumer protection more generally.
92W

§ Mr. Chidgey
To ask the President of the Board of Trade, pursuant to the answer of 19 November 1997,Official Report, column 192, (1) if she will list the trading companies that are subsidiaries of registered charities and the registered charities concerned about which she has received representations; [18046]
(2) if she will list the representations she has received relating to links between providers of funeral services and subsidiaries of registered charities and place copies of these representations in the Library. [18044]

§ Mr. Nigel Griffiths
[holding answer 27 November 1997]: I have received one representation on this. However, since the representation was made on the understanding that it would be treated in confidence, the name of the complainant is not being made public.

§ Mr. Chidgey
To ask the President of the Board of Trade, pursuant to her answer of 19 November 1997,Official Report, column 191, if she will list the individual funeral directors' businesses that the Monopolies and Mergers Commission recommended Service Corporation International divest, and the dates on which divestment took place in each case. [18037]

§ Mr. Nigel Griffiths
[holding answer 27 November 1997]: The MMC did not specify all the individual funeral directors' businesses that Service Corporation International (SCI) should be required to divest.
Divestment in accordance with the undertakings given by SCI took place on 4 April 1997.
The individual funeral directing businesses sold were:

Francis Chappell and E. L. Wickes (Camberwell);

Ashtons (Brighton and Hove);

Frederick W. Paine (Chiswick);

Adela (Eastbourne);

Mannerings (Sidcup);

W. H. Wigley (Battersea);

W. S. Bond (Fulham);

Ashton and Matthias (Putney);

Mannerings (Bromley);

Peter A. Martin (Crawley);

Colin Bennett Funeral Services (Woodingdean); and

E. Carter and Sons (Rottingdean).

§ Mr. Chidgey
To ask the President of the Board of Trade how many cases for unfair dismissal(a) have been brought by employees of funeral director firms over the past five years and (b) are currently pending; if she will list the names of the parties to the actions; and if she will indicate the names of the employers' ultimate parent companies [18298]

§ Mr. Ian McCartney
I have consulted the Chief Executive of the Employment Tribunals Service on this matter, and he informs me that no information is held on an employee's occupation or on the category of business the employee was working in. Details of tribunal applications, the tribunal's decision and the names of respondents in particular cases can be found on the Public Register at Bury St. Edmunds, unless the case involves an allegation of a sexual offence.

§ Mr. Caplin
To ask the President of the Board of Trade if she will set up an independent ombudsman to oversee the funeral industry. [16863]
93W

§ Mr. Nigel Griffiths
There are a number of schemes for consumer redress in the funeral industry. A substantial minority of funeral directors recognise the present Funeral Ombudsman Scheme. The largest trade association, the National Association of Funerals Directors operates a separate scheme. I would welcome the emergence of a single independent scheme to protect consumers.