Petrol Prices

Debate between Ed Davey and Lord Jackson of Peterborough

Wednesday 15th May 2013 Commons Chamber

[Mr Davey]

We heard about the raid of these companies’ offices late yesterday evening. We have seen the OFT’s statement and know that it was accompanying European Commission officials, and we will no doubt find out more as the day goes on. The hon. Lady must remember that these competition bodies are independent, and I hope she will reject the idea that we should get ourselves into these investigations. We will seek more information, but we will not be interfering in the investigations.

[Mr Stewart Jackson (Peterborough) (Con)]

This is an issue of parliamentary sovereignty as much as anything else. One thing people say, and one of the most pernicious opinions in the wider electorate, is that the Government only look after big business and not ordinary working families, and—most importantly—that quangos are non-accountable. When will the Secretary of State look hard at the efficacy and accountability of the Office of Fair Trading and, if necessary given its lamentable performance, ensure that heads will roll?

[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.