Micheál Martin (Cork South Central, Fianna Fail)

The Government, at its meeting this morning, approved the text of the competition amendment Bill 2005. This will strengthen the Competition Act. I plan to publish the text as soon as practicable allowing for the fact that the Bill must now be printed. It will repeal the groceries order and amend the Competition Act to prohibit resale price maintenance, unfair discrimination and so-called hello money in the grocery trade. I hope that the legislation will be enacted as soon as possible.

The Competition Act is one of the most modern competition statutes in the world and it has been working very well in the relatively short time since its enactment in 2002. The Act introduced many improvements in the law and the way in which it is applied. For example, the system for regulating mergers and takeovers in the economy was made more open and transparent, with reasoned determinations being published in respect of each case notified to the Competition Authority. This change has proved to be very successful.

The independence and powers of the authority were substantially increased under the 2002 Act and its resources have also been enhanced since. A second mergers division was established earlier this year and the Government has committed to making further funding available to the authority in 2006 for the purpose of strengthening its cartels division.

While I have no immediate plans for a formal review, my Department continues to monitor the operation of the Act on an ongoing basis in conjunction with the Competition Authority.

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