Transport: Fuel Prices

Debate between Lord Steel of Aikwood and Baroness Wilcox

Thursday 24th November 2011 Lords Chamber

[Lord Steel of Aikwood]

To ask Her Majesty’s Government whether they plan to take action regarding the retail price of fuel at motorway service stations.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, the Government believe that the prices that an enterprise charges for its products and services is primarily a commercial matter for the enterprise concerned. Any competition concerns relating to the pricing of goods, including the retailing of petrol at motorway service stations, would fall to the Office of Fair Trading to investigate as the responsible competition authority.

[Lord Steel of Aikwood]

My Lords, I am grateful for that Answer, but is the Minister aware that prices at motorway stations are currently at about 10p a litre above those available elsewhere? This surely cannot be right. Will the Government consider referring the matter to the Office of Fair Trading or, on the other hand, copying what is done in France, where on the approach to a service station there is a notice board indicating the supplier and the price not only at that station but at the following two, and in that way promote competition?

[Baroness Wilcox]

I am very interested in the second part of that question. That sounds a very good idea, and I shall take it away if I may. My answer to the first part, of course, has to be that the Government believe that the best guarantee of a good deal for consumers is an open and competitive market—so what he suggested at the end of the question would be very helpful. However, if there is a concern that petrol prices at motorway service stations are affected by anti-competitive practices, the responsibility falls back to the Office of Fair Trading, and the Government really cannot interfere with that.

Businesses: Contracts and Payments

Debate between Lord Steel of Aikwood and Baroness Wilcox

Wednesday 3rd November 2010 Lords Chamber

[Lord Steel of Aikwood]

To ask Her Majesty’s Government what steps they are taking to encourage large companies, with regard to contracts and payments, to act considerately towards small and medium-sized enterprises with which they deal.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

The Government support the Institute of Credit Management’s prompt payment code, which requires signatories to pay according to agreed terms and to give clear guidance to suppliers. The code is working—Experian analysis suggests that signatories represent around two-thirds of total UK supply chain value. We are also helping suppliers to help themselves through the managing cash-flow guides, which help suppliers to manage their customer relationships, payment terms and invoicing arrangements.

--- Later in debate ---

[Lord Steel of Aikwood]

My Lords, that is a most welcome and encouraging reply, following as it does on the policy of the previous Administration and the CBI and the Institute of Directors. Will the Government go a little bit further and consider establishing a blacklist of companies which fail to observe these exhortations when it comes to giving public sector contracts?

[Baroness Wilcox]

My Lords, the question was whether the Government will create a blacklist of firms which consistently act in an inappropriate manner. I do not think the previous Government did that and I do not think we will. The Government are working with the UK’s main business organisations and UK business to promote and encourage good practice. If the noble Lord knows of a practice that has been brought to his attention which is not being sorted, I hope that he will contact me to see whether my department can help in any way.