Government gets tough on price fixing

Construction firms suspected of involvement in price-fixing cartels will come under unprecedented scrutiny when the Office of Fair Trading is given sharp teeth to investiagte and fine companies.

The Government's Competition Bill, which seeks to prohibit anti-competitive deals and anti-competitive market powers, will bring the UK into line with Europe. The OFT is likely to gain wide-ranging powers to investigate companies and seize documents. The Bill is also likely to see the Director General of the OFT given powers to heavily fine companies.

The OFT has been seeking stronger powers for over a decade but the last Conservative administration consistently procrastinated on the issue and promised legislation that was never enacted.

Asked whether the bill will enhance the OFT's powers, a spokeswoman said: "Yes it will. We will come into line with European Commission rules on competition. We've been asking for this for over ten years.".

Lord Gordon Borrie, the former long serving OFT director General under the last Government, has been tasked with reviewing competition regulations and reporting back to Secretary of State Margaret Beckett with his recommendations. It is only then that the detail of the legislation will be worked out.