This canard has been thoroughly debunked elsewhere. The assertion being made is, essentially, that Open Access publishers have an incentive to publish dubious material, in order to increase their revenue from Article Processing Charges. This is a very peculiar accusation for a traditional publisher to make given that in the same evidence session, Elsevier's hefty annual subscription price increases was justified as follows:

i.e. Elsevier's primary justification for increasing their subscription charges (and profits) is that each year they are publishing more articles. In which case, if their own argument is to be believed, they face the exactly the same conflict of interest as Open Access publishers. Fortunately, however, no such conflict of interest exists, for either Open Access or traditional publishers. Any scientific journal's success depends on authors choosing to submit their research to it for publication. Authors publish research in order for the value of their findings to be recognized. The kudos granted by a solid publication record is crucial for scientific career progression. Authors submit their research to journals with a reputation for publishing good science. If a journal had a reputation for publishing poor science, it would not receive submissions. Thus the system is inherently self-correcting. It should also be noted that many leading journals (both commercial and not-for-profit) already have page charges and colour figure charges for authors, in order to defray expenses and to keep subscription costs down. Just two examples (of many hundreds) are the Proceedings of the National Academy of Sciences (USA), and Genes & Development. So author charges are hardly an unprecedented experiment. It is true that commercial publishers have tended in some cases to remove author charges, and to commensurately increase subscription fees, since this suits their commercial interests in maximizing profits. But it is clear that author charges pose no fundamental problem to effective peer review.