Dáil debates

Wednesday, 16 April 2014

Competition and Consumer Protection Bill 2014: Second Stage (Resumed)

 

1:55 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Before the break, we discussed the importance of regulation but also the importance of the enforcement of regulation. This is a critical issue for so many elements of industry. We spoke about the difficulties experienced by many companies within the concrete industry and the damage done to the industry's consumers, including the State which would have been a massive consumer of concrete in the past with the associated cost to the taxpayer. The argument I was putting forward was that the proper resourcing of enforcement leads to a better functioning market which leads to reduced costs for the taxpayer and consumer and competitiveness in the entire industry.

In a draft paper looking at white-collar crime oversight, the academic Elaine Byrne last year questioned whether the State bodies were fit for purpose. The question is very relevant. Ms Byrne notes that there are just three forensic accountants within a team of 70 officers at the Criminal Assets Bureau. Privately, senior officers from different agencies have confided in Ms Byrne that diminished resources are strangling their ability to do the job effectively. Those are very strong words from those at the coalface of enforcement. The Office of the Director of Corporate Enforcement is another area where resources simply do not reflect the need with which it is faced nor the stated commitment of the Government to tackle significant wrongs such as the investigation into criminality in Anglo Irish Bank. Elaine Byrne notes that the Office of the Director of Corporate Enforcement saw a decrease in funding in 2011 of 7.5% and was allocated five administrative staff and five gardaí to assist with the Anglo investigation, one of the largest and most pivotal investigations of the economic health and well-being of this State. Budget allocations for the Office of the Director of Corporate Enforcement, the Standards in Public Office Commission, the Garda Bureau of Fraud Investigation and the Office of the Ombudsman have decreased. What we have seen is a retrenchment of resources to the bodies tasked with enforcing the regulations of the State - a State that is on its knees as a result of regulations not being adhered to in the main.

We all agree that the strengthening of competition law is important.

However, it is not worth a jot if the Minister does not resource it. We are calling for the Minister to show where the resources will come from for this.

The grocery sector, about which I started my contribution, is one of the most pivotal sectors of Irish society because most people are consumers of it, it creates and maintains a lot of jobs and many of the SMEs in the State supply that sector. The muted response by the large multiples to the Minister's legislation is a cause for concern. Criticism has been levied at the Minister for not introducing a code of conduct, as was first promised by Fianna Fáil as far back as 2009 and which was recommended by the Travers report in 2011. Such a code was to be placed on a statutory footing and this is where my problem lies with the legislation. The Minister has said that he considers that regulations would be more appropriate than a code of practice and I would like to hear more from him on his rationale in that regard. The Travers report recommended the placing of the code of conduct on a legislative basis. We accept that jobs, businesses and consumers need to be protected but so too do suppliers. What we are looking for is balance.

On publishing the Travers report and the draft code of conduct in July 2011, the Minister expressed his disappointment with the grocery industry's failure to sign up to the voluntary code of conduct. However, that is hardly a surprise because most sectors and most industries would desire unfettered markets and would like to be able to operate in any way they choose. Most instinctually look for a reduction in regulations that may impose charges on them and cause difficulties for them, even if such regulations are, in general, designed for the better functioning of that market and for the safety of the participants in it, especially if there are dominant forces within a market structure. We must be honest about the Irish grocery sector which has a number of dominant players and vested interests.

The Minister is also asking Opposition Deputies to debate and discuss regulations that have not been written yet. The Minister has said they will be drafted and enacted as soon as is practicable after the enactment of the Bill. Is that not asking the Opposition to buy a pig in a poke? The Minister is asking us to trust the Government on this, it will address the issues and deliver in an adequate fashion. Suppliers have waited for decades to see some concrete action on the sharp practices in the grocery sector. They can be forgiven for finding cold comfort in what is before us. They will feel that this Bill is promising something at some stage in the future for which they have already been waiting for a long time.

It is very worrying also that the Minister is proposing to introduce an initial series of regulations reflecting some of the powers open to him and then he will take a wait-and-see approach before deciding if they need to be amended or strengthened. In short, we are merely getting enabling provisions to allow the Minister to regulate and all we have here are the bare necessities, which the Minister may increase as he sees fit at some point in the future. We need a clear legislative framework and a level playing field now for this sector. It appears that this is not a definitive goodbye to "hello money" after all, which is deeply disappointing.

One of the phrases I have used most in the House since becoming a Deputy three years ago is that one cannot manage if one cannot measure. The Minister is probably sick of listening to me saying it at this stage. One of the major issues in this sector is large multinationals not declaring their turnover, profits or margins in this State. Hiding this reduces the ability of the Oireachtas to regulate and manage the sector. It also reduces the power of suppliers in their negotiations with these organisations. Transparency is on the side of good regulation and good market functioning and the Minister should also be on the side of transparency.

A free and diverse media - the "Fourth Estate" as it is sometimes called - is probably one of the most important components of a functioning democracy. Oversight of competition within the media should be strong, rigorous and independent. We need to make sure that we insulate the regulation of the media from the vested interests within the media itself. That could happen with a good, strong, independent commission. I believe that discretion in the hands of politicians on this issue is more often than not tainted by the huge influence that media moguls can have. Sadly, Ireland's media market is probably one of the least diverse in the world. The issue of the Denis O'Brien's Communicorp dominance in terms of media ownership in Ireland remains. Irish media has been characterised, for as long as I have known it, by a number of powerful oligarchs in Ireland and Britain. These very powerful individuals exert a fierce amount of control over the functioning of the State. A recent documentary on one of the news stations highlighted the level of influence that the Independent Newspaper Group had on general elections in the past and the deals made with Bertie Ahern in the run up to elections.

People talk about freedom of speech in this State but in many ways freedom of speech is determined by how much money one has to control broadcast and print media. If ownership is centred in the hands of a few vested interests, that has a negative effect on the functioning of democracy. Diversity and plurality are what we need in our media system. Plurality is undermined when governments have close relationships with media owners, the case in point here being the Government's close relationship with Denis O'Brien, especially in the light of the Moriarty tribunal. If this legislation is passed, what difference will it make to the Government's dealings with his media interests? I ask that the Government addresses some of these issues.

These are my initial thoughts and deliberations on this very important Bill. I look forward to hearing the Minister's responses to some of the points raised and to discussing this legislation further.

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