§ Dr. MarekTo ask the Secretary of State for Trade and Industry if Zenith Milk will be permitted to process milk. [120807]
§ Dr. Howells[holding answer 5 May 2000]: The Director General of Fair Trading (DGFT) has advised that Milk Link, Axis and Zenith, the three successors to Milk Marque, have been operating independent arrangements for the marketing and selling of their members' milk this winter.
Following that advice, my right hon. Friend the Secretary of State for Trade and Industry announced on 2 May that, on the basis that the assurances given last year of independent operation will continue to be observed, he can see no reason why Milk Link, Axis, and Zenith should not establish or extend their processing activities if they choose to do so.
The assurances given were that all policy making and selling of milk would be carried out independently by each of the successors with no joint ventures between the new businesses in marketing or processing milk, with no common directors and no shareholdings by any one of the new businesses in either of the others. Milk Marque also stated that they would not supply to the successor bodies, after 31 March 2001, central services which could not be split prior to the reorganisation which took place last year.
Should the new businesses choose to extend their processing activities through acquisition they will of course be subject to the merger provisions under competition law in the same way as any other company. In addition, Milk Link, Axis and Zenith must, like all undertakings, operate their businesses in accordance with both domestic and European competition law.