Phil Hogan (Carlow-Kilkenny, Fine Gael)

Fine Gael will support this Bill on Second Stage, although we will seek to amend it on Committee Stage. The Bill is long overdue and it is surprising that it has come so late in the five-year term of the Government. Its powers are much weaker than they should be. It is weak because the National Consumer Agency has nothing like the powers it needs to have a reliable role to protect consumers. It is late because my party introduced a Bill two years ago and we were promised we would have an immediate Bill from the Government. Two years later, we finally get the fruits of the Government's labour. On that occasion, Fianna Fáil and the Progressive Democrats voted down the Bill on the basis that their own Bill was coming. Perhaps they felt the powers we were granting the consumer agency were too great, which seems to be borne out by the contents of this Bill.

For the past eight years Fianna Fail and the Progressive Democrats have played a cruel, laissez-faire game in the area of consumer protection. They sat back as the economic boom let rip and every scam artist and rip-off merchant in the country made a mint. Irish consumers were treated to the highest inflation in Europe, the highest prices in Europe and the worst value for money. Last week, inflation hit a disgracefully high level of 5.2%. Inflation during the 1994 to 1997 Government was 1.5%. Government and regulator-controlled prices are rising almost three times faster than private sector prices — a stunning 55% between 2001 and Oct 2006 compared to 18.3% in the private sector. Wherever the Government has control over prices, it is three times out of kilter with the private sector.

After years of this hardship, the Government has now proposed the establishment of the National Consumer Agency. I welcome the principle of the agency and we will attempt to amend its proposed powers on Committee Stage. During the debate on the Fine Gael Private Members' Bill in the Dáil in 2005 to create a consumer rights enforcer, the Minister of State, Deputy Killeen, referred to "comprehensive measures and policies already in place and envisaged, both domestically and internationally, to protect and represent consumer interests". He then instructed Fianna Fáil and Progressive Democrats Deputies to vote down our reasonable proposals.

This was followed by the "Rip off? What rip off?" approach of the Minister for Arts, Sport and Tourism, Deputy O'Donoghue, who condemned Fine Gael for even raising the issue. I am glad that he has been shouted down at Cabinet and the Government is now starting to acknowledge the problem. For the record, let it be clear that this Government is the father of rip off Ireland. No fewer than 50 stealth taxes and charges have been introduced by the Government since the last general election — many of them introduced shortly after the general election. On everything from ESB bills to passport fees, the only way has been up. In the 12 months to January 2007, consumers saw increases in college fees, exam fees, electricity prices by 12.6%, average monthly gas bills by €15.50, Dublin Bus and Bus Éireann fares, Iarnród Éireann and Luas fares, M50 and M4 tolls by 10c and the television licence fee. The list is endless.

Ireland has become a graveyard for consumers with annual inflation at its highest level for four years and further electricity price rises yet to take effect. The price increases in the 12 months to December 2006 were the highest for four years. Prices have increased by 5.2% and the electricity price increase is yet to bite. A comparison with prices across Europe shows that Irish prices have risen in the past 12 months at a rate 26% faster than in the rest of the euro area. Irish price increases in Government-regulated sectors are more than twice those in the rest of Europe. Price increases in Irish sheltered service sectors have been close to twice the rate of the rest of Europe. Yet price increases in Irish goods markets have been far slower than in the rest of Europe. These trends are continuing a pattern which has prevailed for many years, during which Ireland has become one of the dearest countries in Europe. Ireland has become a graveyard for consumers as a result of poor public policy promoted by the Government.

When we look further, we begin to see what has been the main driver of inflation over the past five years. Goods in our shops have not increased in price over that entire period. The prices of services delivered by companies exposed to international competition have actually reduced. Yet prices in sheltered service sectors have increased by 24%. Does the Minister have any plans to deal with this matter?

The Bill puts the National Consumer Agency on a statutory basis. In principle, the agency is needed and the Bill is long overdue. The interim measures introduced in 2005 gave a clear indication of intent that he would put the agency on a statutory basis sooner rather than later. Why has it taken so long?

The process of drafting the Bill has not had any impact on the Minister. He must have skipped over the sections in the Bill dealing with incorrect descriptions, causing consumer confusion and providing false, misleading or deceptive information to consumers. If he had paid heed to the spirit of these provisions in the Bill he would not have tried to pass the Bill off as the most fundamental reform of consumer law. To present the Bill in those terms does no service to consumers or himself. The Bill is not the fundamental reform consumers are entitled to expect from a Government, which along with its predecessor, has been in office for ten years. It is a disappointing piece of work that has all the hallmarks of having been rushed through before the election. I know the Minister would not agree with me on that matter either.

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