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Competition Policy

Volume 940: debated on Monday 28 November 1977

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asked the Secretary of State for Prices and Consumer Protection what action is being taken to carry out the review of the legislation and institutions governing competition policy; and whether he will make a statement.

The review stems from concern at the increasing concentration of ownership in British industry and the effect that this may be having on the economy, the disappointing results of many mergers and the Government's desire to ensure that competition policy makes its full contribution to improving industrial performance. The review will reflect the fact that competition policy and the industrial strategy are complementary, in that they share the same basic objective of increasing the efficiency of British industry.We have decided to set up an interdepartmental group whose task will be to prepare a preliminary study for Ministers by the spring.The group will carry out a survey of the existing evidence on the causes and consequences of concentration, the factors that encourage mergers and their results, the effects of monopolies, and the effectiveness of the present competition legislation. It will have regard to competition policy in other countries and especially the development of the EEC rules of competition. It will see what lessons can be drawn from the evidence and what further studies may be necessary. It will be giving special attention to the implications of United Kingdom membership of the EEC as well as the increasingly international structure of markets and the generally more competitive international trading environment in which our industry has to operate.The group will concentrate initially on possible changes in mergers and monopoly policy and the way that this is applied in the legislation. It will also make a preliminary assessment of further aspects of competition policy, including restrictive trading practices, and possible changesThe information about the bodies for which I am responsible is detailed below:

Full-time*Part-timeSalariedFee PaidUnpaid
Advisory Committee on the Safety of Household Electrical Equipment1515
British Hallmarking Council88
Consumer Protection Advisory Committee1515
Hearing Aid Council1212
Metrication Board1313
Monopolies and Mergers Commission12324
National Consumer Council17†17†
Scottish Consumer Council12111
Welsh Consumer Council12111
Office of Fair Trading11
Price Commission11415
Tate and Lyle Customer Safeguards Committee║77
Nationalised Industries' Consumer Councils:—
Domestic Coal Consumers' Council2121
Electricity Consumer Council13‡112‡
Eastern Electricity Consultative Council27126
East Midlands Electricity Consultative Council20119

in the institutions governing competition policy, notably fusion of the competition and prices policy institutions.