§ Dr. CableTo ask the Secretary of State for Trade and Industry what his Department's policy is on vertical integration in relation to competition matters; and if he will make a statement. [123637]
§ Dr. HowellsI examine each merger case that comes before me on its own merits. I reach my decision in the light of the Director General of Fair Trading's advice.
§ Dr. CableTo ask the Secretary of State for Trade and Industry (1) what assessment his Department has made of the views expressed by the OFT in November 1999, concerning further vertical integration of BUPA's private healthcare activities; and if he will make a statement; [123636]
(2) what assessment he has made of the risks posed by vertical integration in the private healthcare sector in respect of (a) competition in the provision of private medical insurance, (b) competition in the provision of private hospital services, (c) the interests of consumers of medical insurance and (d) the interests of consumers of private hospital care; and if he will make a statement. [123632]
§ Mr. ByersAn assessment of the private medical insurance (PMI) and private medical services (PMS) market was made by the Office of Fair Trading (OFT), which under UK competition law in the first instance has the responsibility to investigate allegations of anti-competitive behaviour and possible abuses of a dominant position.
602WThe OFT announced the results of its inquiry on 5 November 1999. It cleared the sector of major competition problems, but highlighted the need for much greater clarity and accuracy in the information available to policy holders.
The OFT said that it would consider very carefully any further vertical integration of BUPA's or PPP's businesses.
In the specific case of BUPA's proposed acquisition of Community Hospitals Group, I will decide whether or not to refer this case to the Competition Commission in the light of the Director General of Fair Trading's advice. Each case is considered on its individual merits.