Frank Doran
Main Page: Frank Doran (Labour - Aberdeen North)
Mr Davey
Although I strongly support the sovereignty of this Parliament, for some matters the outcome for consumers can be improved when they are given to an independent or European body. We give authority to the independent central Bank—the Bank of England—because evidence and theory has shown that an independent body can set interest rates in a more effective way. The analysis, not just in this country and Europe but in America, is that an independent competition body is the most effective way. When I was Minister responsible for competition in the Department for Business, Innovation and Skills, I looked thoroughly across the whole competition regime and made proposals that have gone through the House to bring together the OFT and the Competition Commission into a more robust, speedy and effective regime. I hope that reassures my hon. Friend, Members of the House and the public that this Government are determined to have the most effective competition regime in the world.
Mr Frank Doran (Aberdeen North) (Lab)
As the Secretary of State will be aware, there has been a long-term disconnect between the price of oil on the market and the price at the pump. He will also know that over the decades, numerous inquiries have been made by the OFT and other competition authorities into the oil and petrol market, but not one has uncovered what is now alleged to have happened. The other issue for the consumer is the LIBOR market, which my right hon. Friend the Member for Don Valley (Caroline Flint) mentioned. Fines were paid by shareholders and customers in extra charges, but the men responsible walked away free. We do not want the same thing to happen in the oil and gas industry, and the Secretary of State is in danger of being complacent in relying simply on the competition authorities.
Mr Davey
We are not complacent at all. We stand by the independent bodies. If it was not for them taking action, we would not have had this statement. They are acting, and we should support them. It is good that the European Commission competition DG has looked not only at the UK, but across Europe. Many of those markets are integrated, cross-border markets, so it is vital we take that view. People should not rush to judgment. We must wait for the outcome of the investigations, but the fact they are happening shows that the public authorities do not treat those matters with complacency.