Competition (Amendment etc.) (EU Exit) Regulations 2020

Baroness Bennett of Manor Castle Excerpts

Monday 16th November 2020 Grand Committee

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, as the Minister outlined, today we are bringing over EU competition regulations into UK law. With only a few score days until the end of the transition period—whatever that is going to look like—there is little chance to make anything other than the fairly minimal and technical arrangements described, although plenty of complications remain, and may well be added to by future legislation, as the noble Lord, Lord Lansley, clearly outlined.

The debate on this SI is also a chance to think about the place of competition in our society. Competition law—or anti-trust law, as the Americans call it—traditionally seeks to maximise competition. In that our current law is clearly failing, with the dominance of a handful of internet companies in cyberspace; the dominance of the great parasite, Amazon, in cybercommerce; and the oligopolistic place of a handful of companies at each stage of our food chain, from seeds and fertiliser supplies to manufacturing fast food.

There is also the fast-growing issue of common ownership—the way in which trading practices and the dominance of a few hedge funds and financial players mean that those companies are owned by a handful of financial firms with no real interest in seeing competition between each of their shareholdings. I would be interested in any comments the Minister is able to make on what plans the Government have to tackle that issue, which has been raised by the OECD, among others, as a growing concern. Small independent businesses, innovators, inventors and creatives are swept up by the logic of our “might is right” business world—bought out, possibly at considerable financial benefit to themselves but at great cost to the rest of us, who are left with a handful of companies dictating what we watch, read, eat and wear, albeit that they might be carefully differentiated by brand into different segments.

If we go to systems thinking, to ecological thinking, what we have is a poor, degraded business environment, lacking in the diversity that brings colour, taste and richness, and resilience—something that Covid-19 has made only too clear. We clearly need different kinds of laws and arrangements.

Yet when we go to other elements of our society, there is far too much competition. The privatisation of public services has led to the cutting of the pay and conditions of workers, a reduction in the quality of provision and the pumping of public money into private hands. The competition is played out in the race to the bottom of provision. I take as an example the report last week from the Children’s Commissioner. The commissioner—a commendably brave and stalwart public servant—noted in a tweet that the “market” in residential care homes was broken. I would like to step back and say that this is an area in which the market—competition—should have no place at all. Competition has been and continues to be unable to work out how to provide the best possible provision for mistreated suffering children. It requires co-operation from all those involved, all along the line, from social workers to residential homes to foster carers. To set up a system designed to make profits from this is nothing short of obscene.

We might look to the United States for another area where competition is entirely inappropriate: the provision of prison places. This is also true here in the UK, where private prisons are demonstrably worse than their public counterparts. Privatising—seeking to make profit out of—the coercive power of the state, setting up the companies providing this in competition, can never be right and can lead only to perverse incentives, such as encouraging more imprisonment, however much the individuals in the system might be there for entirely right, humanitarian reasons, as the vast majority are.

We have a society both lacking in competition and with far too much competition, but behind that is a monolith: no competition at all, financialisation, the turning of everything from the water we drink and bathe in to the council houses that were once public assets and the social care that supports our frail elderly and disabled into a source of profits—profits that all too often are sucked out of our society into the nearest handy tax haven, something supported by the same financial sector, the same City of London, that services and supports that tax haven.

We have seen the destruction of a balanced, mixed, healthy and economic ecosystem, with some things working by good competition, such as local market gardeners seeking to produce the freshest, tastiest and most interesting vegetables, local tailors being the best at reviving and updating your wardrobe, and carpenters producing solid, useful and attractive furniture—and other things, such as schools, carers and housing, which are built not on competition but on co-operation, being regarded as the solid foundations of a decent society.

There is no choice at this moment but to support this SI and go forward from where we are but, as the Government keep talking about building back better and levelling up, we need to look at far more foundational issues and laws for our society.