Public Bodies: Reform

Lord Borrie Excerpts

Thursday 14th October 2010 Lords Chamber

[Lord Taylor of Holbeach]

The noble Lord makes some useful suggestions for the ongoing process of the review and I am grateful to him for them. They are not covered within the existing programme of change, but the Government intend to continue to test all government bodies against their standards. I note my noble friend’s comments and I am sure that I can take them back.

[Lord Borrie]

In light of the well-publicised speech during the summer by the right honourable Vince Cable on the disastrous situation that would come about if capitalism were to be completely unrestrained, is not the proposal to abolish the Competition Commission astonishing? It is true that the Statement says that it will be merged with the Office of Fair Trading, but over the past 50 years in which the present system for advancing competition has been in force, with the Office of Fair Trading, the Competition Commission formerly the Monopolies Commission and the Government, it has generally been accepted that the system is fair, just and effective. I mention fairness because the word is so important today. The Office of Fair Trading and the Competition Commission are separate and not merged together because the more aggressive body, the Office of Fair Trading, makes prosecutorial propositions against a merger of two companies, for example, and the Competition Commission can then judicially and impartially judge between them.

The Statement emphasises the matter of political impartiality. The reason for the whole set-up dealing with competition policy, to which all parties have adhered for 50 years, is that there should be political impartiality when it comes to individual decision-making about company mergers or the restrictive practices of a particular company. They should not be subject to party-political pressure. Surely, the Minister would agree.