Tony Killeen (Clare, Fianna Fail)

It would be premature to proceed with the Bill given that a report on the matter is only a few months from completion. I acknowledge, however, that there is considerable merit in proceeding with legislation at an appropriate time.

The Bill would simply rename the office of the Director of Consumer Affairs which already exists as an independent statutory office under section 9(5) of the Consumer Information Act 1978. The office's budget for 2004 is €3.9 million. The Bill also seeks to provide for certain functions to be undertaken by the new consumer rights enforcer. Many of these functions are already undertaken by the Director of Consumer Affairs.

The Office of the Director of Consumer Affairs has powers and legitimacy. To date in 2004, 28 traders have been successfully prosecuted and a further eight cases are pending. I accept Deputy Perry's point that consumers need to be advised of their rights and unscrupulous business people need to be advised that this enforcement procedure is in place. Many people would be surprised to learn of the number of prosecutions this year. Thousands of investigations are undertaken each year and the director's inspectors work closely with traders towards achieving her objective of compliance with legislation.

I draw particular attention to the results of price surveys, which the Director of Consumer Affairs has already published on products such as petrol, potatoes, over-the-counter medicines, compact disks and drink price increases coinciding with major sporting and social events. These provide valuable information for consumers wishing to make informed purchasing decisions.

As I stated and the Minister informed the Seanad last week during a positive debate on competitiveness and consumer protection policy, we have reviewed the level of fines for breaches of consumer legislation and the Minister will shortly introduce legislation to update these to a maximum of €3,000. Furthermore, one of the recommendations made by the Director of Consumer Affairs in her submission to the consumer strategy group in July was that the consumer should be represented in the social partnership process — Deputy Hogan also referred to the representation of consumers. The director noted that it was striking that the third pillar had a wide range of organisations but did not include consumers. The Department's representative makes contributions on consumer matters at the anti-inflation group established under Sustaining Progress.

The Department has worked closely with the Central Statistics Office, the Office of the Director of Consumer Affairs, the Consumers' Association of Ireland and Forfás on the issue of price transparency. This resulted in the publication for the first time last July of the CSO consumer prices average price analysis for Dublin and outside Dublin for May 2004. The Department proposes to continue to work with all interested parties to consider if there is further potential to build on this initiative so as to enhance price transparency for consumers and empower them to seek out the best value possible.

In so far as the Consumer Rights Enforcer Bill seeks to go beyond the powers and functions already vested in the Director of Consumer Affairs, it may constitute nothing more than a piecemeal approach to addressing legitimate concerns and interests of consumers.

The Government has been instrumental in moving the consumer agenda to centre stage and recognising its importance in the context of the modern, progressive and confident economy, which has developed in Ireland over recent years. As a direct result of the Government's initiative, the Irish Financial Services Regulatory Authority was established with a specific consumer focus. The new consumer director within the regulatory authority has already underlined her determination and commitment to represent the interests of consumers in a positive way. For the first time, consumers of financial products have a new champion, a statutory officer, whom they can approach if they feel their rights are being denied. A specific means of redress and source of valuable guidance and information is available to them when seeking advice on the purchase of financial products. Members will acknowledge that the banks were untouchable and theirs was not a consumer-friendly approach. This is a new departure in Ireland, a new focus on the consumer and an indication of the Government's commitment to protecting and representing consumer interests.

The Government has successfully tackled the issue of high insurance costs, which had become an increasing burden for industry and had driven some consumers to the point of despair. The Government's insurance reform programme is an example of the benefits to be derived from determined and concerted action. The Personal Injuries Assessment Board represents a new consumer focused approach to dealing with insurance claims. I acknowledge the difficulties referred to by Deputy Hogan in this area, which I hope will be resolved shortly. Before the board became fully operational in July 2004, both business and the individual purchaser of insurance products already began to reap the benefits of reduced costs and lower premia. No matter what figures are relied upon, the news is of huge savings. Some estimates place the saving to motorists of reduced premia at approximately €300 million this year. Official figures published by the Central Statistics Office at the start of the summer showed a 14.5% reduction in motorcar insurance between June 2003 and June 2004. A separate survey of motor insurance carried out by the Automobile Association showed an average 22% fall in motor premia over the previous 12 months. There is equally good news for businesses as liability insurance, which cost business approximately €840 million a year, has fallen by at least 20%. This is an additional potential saving of €168 million because of these reforms. In total, the reform process is expected to generate approximate savings of €460 million to consumers in 2004.

Consumer costs are important in their own right but are also as much a part of the competitiveness agenda as are the costs to business and industry. For overseas industry seeking a location for new investment, business costs are only part of the equation. Consumer costs also feed into the mix of employees' welfare and expectations. Consequently, issues surrounding consumers' welfare must be approached with the same urgency and commitment as the general competitiveness agenda. Analysis shows Ireland has become an expensive place to live and Irish consumers are paying more for many basic commodities than our European neighbours. A report commissioned from Forfás by then Minister of State, Deputy Kitt, first highlighted this in a stark way. "Rip-off Ireland" may be a term coined by the media, but as a perception among members of the public and industry, it is real and merits a positive and proactive approach on the part of the Government.

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