Written question asked by Lord Taylor of Holbeach (Conservative), in the House of Lords. It was answered by Lord Davies of Oldham (Labour) on Monday, 12 May 2008.

Office of Fair Trading: Milk and Cheese

Question: asked Her Majesty's Government:Where the penalties levied by the Office of Fair Trading for colluding on the price of milk for cheese will go; what they will be used for; and whether they will be ring-fenced for agricultural purposes additional to existing Department for Environment, Food and Rural Affairs budgets.

Answer: The Government are committed to a strong competition regime and recognise the importance of competitive markets for driving growth, innovation and better value for consumers. Fines, such as those levied by the OFT, are paid into the Consolidated Fund and are then allocated according to government spending priorities as part of the spending review process. The fines are therefore spent on providing services to the public. The Treasury's Comprehensive Spending Review and Pre-Budget Report (published in October 2007), available in the Library of the House and at www.hm-treasury.gov.uk/pbr _csr/pbr_csr07_index.cfm, provides details of how departments' budgets have been set for the next three years. The fines levied by the OFT are intended to be a punitive measure to deter anti-competitive behaviour and are not designed as a means of compensation. However, in general where consumers or businesses have suffered as a result of anti-competitive behaviour, they can seek redress for their losses through private action. The Government recognise that, in some instances, there may be barriers to redress and will be consulting shortly on measures to address this.

Secondary information