HC Deb 24 November 1997 vol 301 cc417-8W
Mr. Redwood

To ask the President of the Board of Trade what assessment she has made of the impact of implementing the recommendations contained in the Monopolies and Mergers Commission Report on electrical retailing on the numbers of electrical retailing businesses operating. [16523]

Mrs. Beckett

The MMC have found that, as a result of a number of entrenched practices by suppliers and dealers of domestic electrical goods, retail prices are higher than they would otherwise be, price competition in these markets is muted, new retailers have difficulty getting supplies, and innovation in retailing is discouraged.

My proposed remedies, announced on 30 July 1997, would stop suppliers and dealers from relying on recommended retail prices and help dealers who want to compete on price but have difficulty getting supplies. They would allow consumers to benefit from lower prices through stronger price competition and more choice of retail outlets.

During the consultation on my proposals small retailers have told me, as they did the MMC, that a number of them would close if the proposed remedies were implemented. I am considering these arguments.

Mr. Redwood

To ask the President of the Board of Trade how many representations against her electrical retailing proposals she has received. [16522]

Mrs. Beckett

By the close of 14 November, I had received around 140 representations raising one or more objections to the proposals I announced on 30 July 1997.

Mr. Redwood

To ask the President of the Board of Trade what estimate she has made of the impact on prices of her electrical retailing proposals. [16521]

Mrs. Beckett

The MMC found that a number of entrenched practices by suppliers and dealers of domestic electrical goods operated against the public interest by causing retail prices to be higher than they would otherwise be. I announced on 30 July 1997 my proposals to prohibit these practices, and that consumers would benefit from lower prices through stronger competition and more choice of retail outlets.