SIMMS ATTACKS NI ONOPOL I ES REPORT A N outspoken attack
Page 15
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on the Monopolies Commission report on vehicle electrical equipment (see page 21)was made this week by Simms Motor Units Ltd. An official company statement said:
• " The report fails utterly to deal with the important aspects of quality, perl'ormance and technical progress wherein this country lags behind overseas products, and which can only be corrected by alive and healthy competition.
"A report issued some six and a half yearsafter the reference of the subject by the Board of Trade to the Monopolies CoMmissien is of histbrical interest and of little value, except to confirm that monopoly condilions exist.
We have stressed the point on many occasions in recent years that a delay of this nature is unwarranted and inexcusable, as the whole pattern of an industry an change and companies can be forced out of business in the intervening period. --" Pressure to eliminate competition Was stepped • up •during the: Prolonged interval between the time the main ;!.yidence was given and the issue of the report.
"The result of this pressure was that Simms were unable•to continue as manufacturers of automobile .electrical equipTlelli, and found it necessary to dispose Of that part of their business in order to avoid se ions financial tosses. "The whole situation is deplorable as it is now too late to provide the competition which in turn would bring the technical advancement Which is so essential for the future of the British motor industry,"
The statement claims that the report does not lay sufficient stress on quality and reliability and, after commenting on vehicle users complaints about electrical equipment. goes on: "it behoves the industry and the Government to take very strong and determined steps to ensure that a similar situation does not arise in the field of diesel fuel iniection equipment.
"If competition were to be eliminated, by reason of tempting or temporary price advantage, it would be a bad day for our industry."