Phil Hogan (Carlow-Kilkenny, Fine Gael)

The Minister has been in Government for ten years and has had plenty of opportunity. It is a hotchpotch of proposals, some of which have been foisted on the Minister by EU regulations or closing off loopholes, which could easily have been implemented long before now. To claim the Bill is the most fundamental reform of consumer law in years is nonsense. It transfers some powers that already existed in the Office of the Director of Consumer Affairs to this new agency, which I welcome — I do not believe in duplication.

I wish to speak about the Government's approach to consumer and competition policy. Seldom has public administration witnessed such a disjointed, incoherent and half-hearted attempt to address specific policy considerations in such a key area. The real problem is that the Government does not have the conviction or determination to tackle vested interests and therefore consumers get poor value, poor service and an inadequate means of address. Section 72, which the Minister mentioned, deals with the issue of redress and on Committee Stage I will be interested to tease out how it will operate. There is a strong sense that perhaps by his lack of speed in dealing with these matters during the past five years he may have become slightly detached from the realities and hardships facing people in their daily lives and the frustrations being experienced by consumers who had nowhere to go with legitimate complaints.

There is one area where there is no absence of commitment on the part of the Government, that is, the establishment of regulators. Instead of taking hard decisions in the areas of energy, transport, competition and telecommunications the Government appears content to get involved directly in its own job creation, namely, the establishment of a plethora of regulatory agencies and regulators who can operate to insulate Ministers from the heat of answering questions on the reason prices are higher. However, they do not provide the type of competition, service or choice people expect or demand. The output of most of the regulatory agencies is not impressive and seems to display distinct signs of regulatory capture rather than a serious commitment to the welfare of consumers. The best example is the Commission for Energy Regulation. These people have rolled over and have had their tummy tickled by Bord Gáis and the ESB over recent price increases only to have some rescinded later.

When I made representations in writing to the Commission on Energy Regulation on this matter last September I was accused of trying to advocate below cost selling. I have not heard how one can put forward an argument about below cost selling in relation to a monopoly. That is the type of argument we have come to expect from the Commission on Energy Regulation. It must be reviewed. I also question the competence and benefit of the CER in circumstances where it has presided over major price increases in energy costs to consumers and businesses with minimal new market entrants to compete with the incumbents. The Minister is aware and is being told regularly of the difficulties businesses experience in regard to energy costs and, therefore, how it is contributing to the high cost base.

The Competition Authority has shown itself to be involved in the enforcement of competition law but it tends to arrive at decisions after the event. It sets up studies and issues reports but we do not hear much afterwards. The new chairman, Mr. Prasifka, and his team have good intentions but we do not hear anything about the tough decisions being taken that will bring dominant players in the marketplace on to an even keel to provide better choice and more competition across the various sectors.

The Competition Authority has shown a propensity to engage in long inconclusive studies which tend to produce results long after either regulations or a market have changed. I met members of the authority in the past and while all were perfectly civil individuals I was left with the distinct impression that a quasi academic and rarefied atmosphere prevails in Parnell Square, which is detached from most households in Ireland. The Competition Authority did not do itself any favour when its former chairman, Dr. Fingleton, predicted savings of €577 million to Irish consumers in respect of the grocery trade. To his credit, the new chairman does not engage in that type of activity and he has not gone out of his way to defend the type of statement made by his predecessor.

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