Miss Melanie Johnson (Parliamentary Under-Secretary, Department of Trade and Industry; Welwyn Hatfield, Labour)

First, I shall deal with the hon. Gentleman's points on the 24-week period, although I think that the amendment principally relates to the eight-week extension. We consulted on options that related to several issues—such as time, transparency and thoroughness—and they all had trade-offs. The hon. Gentleman will be aware from his familiarity with the Fair Trading Act 1973 that it states 26 weeks; the Bill reduces the period slightly. We did not feel it appropriate to use the ECMR figure having considered the practicalities.

The period is extendable by up to a further eight weeks if the Competition Commission thinks that there are special reasons for extension. I understand to some degree the sentiment that underlies the amendments because, in general, it is right that parties have certainty about the timetables that apply to a merger. However, the Competition Commission should have discretion over when to make an extension for special reasons. One reason for which an extension might be required is illness of members of the reporting groups which might seriously impede the Competition Commission's work. Reasonable parties

would probably consult on an extension in such circumstances, but that cannot be relied on, so it seems unwise to give the parties the final say over and above the Competition Commission.

I reassure the hon. Gentleman that the Competition Commission's decision to extend the timetable is not supposed to be an easy option. It must consider that there are special reasons why the 24-week period should be extended. Clause 103(4) requires it to publish its reasons for any such extension, and only one such extension is possible. For example, it cannot opt for a four-week extension and then decide that a further four weeks are needed.

The clause is intended to impose a discipline on the Competition Commission that is strong enough to ensure that the vast majority of cases are completed within the 24-week deadline. The flexibility of the Fair Trading Act regime means that the Secretary of State is currently able to grant an extension of up to three months for special reasons. Hon. Members will see that we have been much more rigorous in our approach.

I take comfort from the fact that the remarks of the CBI in response to the July competition White Paper suggest that it thinks that the approach that we have adopted is right. In response to the proposal that the Competition Commission should have a power to extend the maximum timetable by eight weeks in exceptional circumstances, the CBI said:

''We need to appreciate the need for this, and also welcome the need for published reasons to be given for the extension.''

In light of my explanation, I hope that the hon. Gentleman withdraws his amendment.

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