John Perry (Sligo-Leitrim, Fine Gael)

I compliment Deputy Killeen on his promotion and I wish him well. This important Bill is a long overdue measure, which is born out of frustration with the Government's tardy and sloppy approach to consumer rights. There is a significant level of taxation. Deputy Richard Bruton this week noted the level of indirect taxation paid by the consumer. Consumers should be informed of the level of tax being paid on each consumer item. There is a perception that the retailer is earning a high margin of profit but it is often the case that the business, person is a tax collector. For every €100 spent in a grocery store, 9% is collected in value added tax. The level of tax on consumer goods is considerable.

Instead of prioritising consumer rights, the Government has put them behind the back boiler. There is no real commitment to modernise or update our consumer legislation, which is regrettable. I am disappointed at the level of indirect taxation. Personal tax rates have come down but the level of value added tax collected is greater than income tax. It is ironic that indirect taxation now outstrips direct taxation. When compared with other countries in Europe, more indirect taxation is levelled on the Irish consumer. It should be mandatory for retail receipts to show the level of tax being paid to the State. Consumers would then realise that out of €10 spent, the Exchequer receives €3.

The Director of Consumer Affairs does a fine job in difficult circumstances. Her office is tied to the Department of Enterprise, Trade and Employment and relies on that Department for its budget. I have first hand knowledge of her situation as a result of being a member of the Committee of Public Accounts. When the Accounting Officer of the Department made his report he was accounting for the Department. It is not a truly independent body because it is very much linked to the Department, which has failed to upgrade and modernise consumer rights and obligations. This is the 21st century. Deputy Hogan in his fine contribution described the significant anomalies that exist in the system. The market has to deal with scanning of products, the eurozone, the proliferation of different stores from all over Europe and the sourcing of goods, Internet shopping, e-commerce and a greater use of mail order. The retail market is increasingly, dominated by new entrants. It is imperative that the regulatory environment for these new technologies and markets is capable of adapting to change and responding to consumer demand. Consumer rights should be promoted on the national airwaves; Fine Gael should not have to do the job of Government by setting up www.ripoff.ie. It is a shocking situation. The Office of the Director of Consumer Affairs does not have sufficient funding to ensure it can give an immediate response to cases of rip-off pricing. Only 13 prosecutions have been taken and that statistic tells a story of the ineffectiveness of the office. It has not received sufficient support from the Department of Enterprise, Trade and Employment.

It is alarming that the Director of Consumer Affairs has had no statutory powers conferred since the 1980s, nearly a quarter of a century ago. In that time the marketplace has been revolutionised by new technologies. The Director of Consumer Affairs has legislative powers rooted in the last century and this is wrong.

My background is in small business, which has received little or no support for the creation of jobs in the sector. It is regrettable that the biggest cost factor in any small company is the involvement of the State with high taxation and the level of regulation. Penalties for breaches of the consumer legislation are too lenient and too low. Deputy Hogan's Bill has addressed this issue. There must be a real incentive for businesses to protect consumers and comply with the law. It is not good enough for a large billion euro company to be given a slap on the wrist for overcharging a consumer or failing to display a price. Sanctions must be painful and immediate.

There is much in this Bill to recommend it. The increased involvement of the local authorities, the adoption of codes of conduct, the introduction of price leagues and the inclusion of the enforcer in the loop on new legislation, are all measures that should not present any difficulty to the Members opposite. These measures are what the consumers want and they will deflate the economy. It speaks legions about the Government's lack of commitment to consumers that this Bill is being opposed.

Some years ago, the Tánaiste was asked by the Director of Consumer Affairs to introduce price display regulations for doctors and dentists. To date, we are still waiting for these regulations to be introduced. The Tánaiste was all talk in that regard. As Deputy Hogan said, we have had publication after publication and reports from her former Department that resulted in no action being taken. I hope the same does not happen in the Department of Health and Children. It is difficult for consumers to take the Tánaiste's edict to shop around seriously if her own inaction has left consumers unable to see the price of goods and services on offer.

I welcome the Bill and commend Deputy Hogan for bringing it before the House. He has done trojan work as a crusader for consumers and customers. Consumers are entitled to be impatient and angry with the persistent Government inaction. I hope consumers show the Government a strong no-return policy at the next election.

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