Dáil debates

Thursday, 2 February 2006

Competition (Amendment) Bill 2005 [Seanad]: Second Stage (Resumed).

 

1:00 pm

Jerry Cowley (Mayo, Independent)

This Bill is very much a mixed bag and, like the curate's egg, good in parts. Nobody really knows what will happen. I have read a significant number of submissions were made on whether the groceries order should be abolished and know the major number of submissions to the Minister came from small shopkeepers. The consumers' champion, Eddie Hobbs, appeared to lead the charge on behalf of consumers, with consumer associations and groups, to abolish the groceries order. These two distinct groups have distinct opinions as to how matters will pan out.

Practice is changing in Ireland and we live in a culture of constant change. We can no longer consider Ireland an island nation because of the convenience of air travel and our membership of the European Union which has opened up our borders to a degree that could not have been anticipated. We live in a global market and a changing situation. Major changes have taken place. For many years I have spoken of the demise of rural areas and the vicious circle whereby when we lose services and infrastructure, we lose people. Who wants to live in an area where there are no shops where people can buy a loaf of bread or whatever? Who wants to live in an area where there is no doctor who can provide urgent medical care when needed? Who wants to live in an area without a school, post office or gardaí to protect them? I could go on. People have the right to basic services.

Free market competition is something we cannot deny. We are part of the European Union which is predisposed more towards the market, economics and wealth making than towards social concerns. This is the problem I have with what is happening in this area. We must ask where we are headed as a society. This debate on the groceries order has brought home to many people that there are forces involved we must reckon with. What can we do about the situation when so much is happening beyond our control?

People have spoken about how shops will close down if the groceries order is abolished and have said that if this legislation goes through it will be detrimental to rural areas. The issue is not that clear. Having read the Competition Authority report into the groceries order, I understand how the Government may have succumbed to the pressure from Eddie Hobbs, his followers and the public to abolish it. I do not think the Government really understands what will happen. The Minister for Enterprise, Trade and Employment, Deputy Martin, is pushing this agenda. While I laud him for introducing the revolutionary legislation establishing the smoking ban, and while he may be remembered as the Minister for Health and Children who saved and will save the most lives, he did not do much else for the health service. It was left in a greater mess than that in which he found it, especially in terms of the need for people to stay in their own areas. Half the graduates in my area have to go to Dublin to get their first job although they ought to be able to find work locally. This prompts us to question Government policy.

Government policy, while acknowledging that there should be a free market, should involve rural-proofing. It should acknowledge a certain minimum standard applying all the way down the line from service providers to people buying a loaf of bread in a shop. The Government can have a major effect in this regard. Is this legislation right or wrong for the people of rural Ireland?

The Government, in its policies, has very much favoured big businesses, large retailers and those who make a buck from whatever is going on. A good example was referred to last night in respect of supports for older people. While 5% of old people end up in residential care, it appears the private sector is really the sector making money in this area. While there are some very dedicated and altruistic people looking after older people, including nursing home staff, the vast majority of whom are doing a very good job, profit is the bottom line. By cutting corners they can make even more money. There should be much greater emphasis on communities. Community members can carry out services better than private sector operators because their bottom line is the support of older people in the community rather than making money. The Government needs to become more involved in supporting communities in this regard and should give community carers the same opportunities and incentives as those afforded to people in the private sector. The legislation in this area is very clear and does not favour communities carrying out these functions.

On the groceries order, many cornerstores have closed in rural areas. It seems they are being replaced by petrol stations with forecourts which also serve as convenience stores. While shops may be closing in rural areas, they will be replaced with these convenience stores. However, they may not be owned by the retailer but by multinationals. We have seen across the board that multinationals appear to be calling the shots and setting the agenda. This is very unfortunate. Regardless of how the sector develops — I do not believe anybody knows how it will pan out — the Government has a responsibility to monitor the sector closely so detrimental effects on rural areas can be noted and dealt with. I hope the Government will do so.

I do not believe people in rural areas will eventually have nowhere to buy a loaf of bread or carton of milk, as has been suggested, because there is a niche for convenience stores. To believe otherwise is not comparing like with like. People are going to the supermarkets in larger urban centres to do their shopping but when they want to buy perishables they go to their local store, be it a retail outlet owned by Tesco or one of the oil companies. This seems to be the trend.

The Government needs to ensure rural-proofing of legislation. While there needs to be a free market, the Government has responsibility to protect citizens and ensure minimum standards are maintained. It also has responsibility to ensure citizens have reasonable access to services — otherwise the vicious circle to which I referred will continue. We have seen that when the Government fails to provide money for services and infrastructure in rural areas, people leave those areas and are forced into the urban centres. They are not prepared to live in areas without services — this is logical.

On the question of planning, the Irish Rural Dwellers Association has drawn attention to the difficulty experienced by citizens when trying to find accommodation in rural areas. Groups such as Rural Resettlement Ireland have done great good by bringing people from Tallaght, County Dublin, for example, to rural areas. The people concerned have got on quite well and have ended up supporting local schools. This is the sort of initiative the Government needs to continue to support. Otherwise I do not know what the future will bring.

Let us consider big business. I referred in the Chamber today to the need for the Government to get on the rails again as regards the mediation process pertaining to the Corrib gas project. The Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, made a commitment to five people, who were released from jail, that there would be mediation between themselves, Shell and the Corrib gas partners. Unfortunately, he managed to reach a point where the process was so broad that the five Rossport men pulled out. The process is going nowhere and means nothing anymore. The Minister needs to return to mediation. It appears he misled the Dáil in stating what exactly was to happen because the process in train is clearly not what he promised the five men when they were released from jail. He needs to examine this.

On the groceries order, there is a way forward. The Tweedledee and Tweedledum of the big parties have not been supporting what is happening right across the board in terms of community initiatives. There is not adequate support for communities but there is always so much support for non-community enterprises. The Government should examine the fact that the system favours the profit-maker, in the planning system, for example. I have been involved in various community enterprises and found this to be true. From having spoken to people throughout the country, I have found they have major difficulties in trying to secure planning permission in rural areas. This is particularly true in respect of community initiatives, yet big businesses can get tax exemptions and planning permission for hotels, nursing homes and so forth. The Government needs to address this. The alliance of Independent Members, who are the nearest link to the people and do not have a party agenda to interfere with their wishes, are best placed to carry out the agenda.

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