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Clamp down on rates fixing
Page 4
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by CM reporters A NEW law on restrictive practices which comes in later this month has raised fears that it could let cut-price hauliers off the lead. For under the legislation operators who have agreed rates between themselves' for particular jobs will now •need clearance from the Officeof Fair Trading.
Hauliers carrying containers, area tipping rates agreed for particular quarries and express parcels carriers will all be subject. Fair Trading directorgeneral Mr John Methven last week warned that it will be an offence to have an unregistered restrictive agreement.
These rules come into effect on March 22 when all new agreements will be subject to Office of Fair Trading agreement. After June 21 all restrictive agreements will have to be registered.
And the Office of Fair Trading has produced a free guide on agreements — Restrictive Trading Agreements a n d Recommendations Relating to Services: A guide to Registration 1976—which is designed to help trade associations and professional bodies as. eell as companies with the new legislation.
New legislation
The new legislation says 'that it will be an offence to have an unregistered restrictive agreement after June 21 this year. Agreements made after March 22 must be submitted to the Office of Fair Trading either before they come into force or within three months of making the agreement, whichever is earlier.
The new legislation is mainly aimed at cdflective agreements between suppliers .of services about their charges, terms and conditions, market shares and matters where competition may be restricted.
But the booklet makes clear that a recommendation to an association member or a class or an association mast also be registered.
Exemptions to registration fall into three main classes. Certain agreements relating to international shipping, aviation, road passenger transport and insurance are not subject to the regulation.
Also excluded are agreements concerning the supply or acquisition of certain professional services. Certain agreements to which only two individuals or companies are party to and agreements covering terms of employment are also not included.
Registration of an agreement does not mean that it ceases to have effect; nor that parties may not continue to operate. The director-general of Fair Trading must refer all registered agreements to the Restrictive Practices Court, bt the parties may choose t abandon it or the court ma rule that an agreement is nc against the public interest.
The booklet can be obtaine from the Office of Fair Tradin (Service Order Enquiries Chancery House, 53 Chaucer Lane, London WC2.