Clause 29 - Information powers in
Enterprise Bill
5:00 pm
Miss Melanie Johnson (Parliamentary Under-Secretary, Department of Trade and Industry; Welwyn Hatfield, Labour)
Our reasoning is that we want mergers to be dealt with as efficiently as possible. There is always a danger that parties may face a reference if the OFT does not have enough information. We want to ensure that there is enough information so that that does not happen unnecessarily. The OFT must be able to make an informed decision, so it needs to get information easily and quickly. If the parties need some time to compile information, they may benefit from an extension of the deadline for reference. That is catered for.
We expect the new power to make the regime operate much more effectively. Pre-reference, we expect that the threat and risk of the delay or reference that people will otherwise face will be adequate to ensure that the companies provide the information. Where companies refuse to co-operate and a merger is referred, obviously, the stage two information powers carry tougher penalties. However, there is no statutory limit for the reference decision on anticipated mergers, and the absence of a statutory time limit means that formal investigative provisions are not required. We believe that that is the right balance. We do not want unnecessary reference, but we want information to be supplied. A tougher provision relates purely to the post-reference situation and we believe that the consequences of not supplying information will meet the needs of the competition authorities as well as business to deal with matters swiftly and efficiently.
Question put and agreed to.
Clause 29 ordered to stand part of the Bill.
Clause 30 ordered to stand part of the Bill.