Energy Markets Competition Assessment

Barry Gardiner Excerpts

Thursday 27th March 2014 Commons Chamber

[Mr Davey]

On that last point, one is illegal and one is not, but I think we can all agree that they both need to be investigated by the independent competition authorities. It is interesting that Labour is complaining—at least, some Labour Members are complaining—that we did not make this referral before, given that Labour’s leader, when Secretary of State, refused to make the market investigation reference. Let us remember that in the previous Parliament electricity bills and gas bills increased faster on average each year than they have done under this Government. He had all the reason to make that reference to try to improve competition, but he flunked it when he had the chance.

[Barry Gardiner (Brent North) (Lab)]

May I extend my sympathy to the Secretary of State, as it must be galling for him to have to make this statement to the House, particularly with his minder, the right hon. Member for Sevenoaks (Michael Fallon), present? The Secretary of State has known for many years that what the Labour party has been saying, and what the Select Committee has been saying, has been correct, but he has been prevented from doing anything by the Treasury. Now he has had to come to the House to accept that all the things we were asking for—the Competition Commission referral, a proper examination of this situation and addressing vertical integration—are going to come to pass on his watch. Having said that, can he explain why, when the profits made by the companies in Europe are between 2% and 3%, whereas in this country they are between 5% and 7%, he will not do anything now?

[Mr Davey]

If the hon. Gentleman reads the assessment, he will see that the competition authorities have focused on that last point. On the market investigation reference, I have to remind him, again, that it was the leader of his party who flunked that opportunity. I also have to tell the hon. Gentleman that he should read the record, because Labour’s spokesperson in this area, the right hon. Member for Don Valley, was saying just a few weeks ago that a market investigation reference was not a good idea, that to make such a reference would be to kick things into the long grass and that it should not happen. I am glad that Labour has changed its position.