Hansard

Plasterboard

Volume 867: debated on Tuesday 22 January 1974

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Mr. Skeet

asked the Secretary of State for Trade and Industry whether he will make a statement on the report of the Monopolies Commission on the supply of plasterboard.

Sir G. Howe

The report is published today. The commission has found that monopoly conditions, as defined in the legislation in force when this report was submitted, prevail in the supply of plasterboard. One supplier, BPB Industries Ltd., has a total monopoly of the United Kingdom market.The commission did not consider that this company had abused its monopoly position but was critical of its distribution practices and its relations with its market. These had resulted from a rigid system of discounts and deliveries and policy of contact only through builders' merchants.As remedies the commission recommend that BPB Industries Ltd. should:

  • 1. Abandon its system of uniform delivered prices within the areas served by each of its depots or factories and substitute a differential price system which would take into account actual transport costs.
  • 2. Allow collection by any user of plasterboard from the works at ex-works prices plus reasonable loading charges, subject to reasonable advance notice being given of date and time of collection of a specified minimum load.
  • 3. Allow any users who wished to buy direct from the company to do so on the same terms as builders' merchants. This would be subject to similar conditions as to minimum load and to minimum annual purchases.

    • I accept in principle the recommendations of this report. I am asking the Director Gentral of Fair Trading to discuss the implementation of these recommendations with BPB Industries Ltd., taking account of the possible effects of the change from a uniform delivered price system.