Phil Hogan (Carlow-Kilkenny, Fine Gael)

Unfortunately it did not happen that way. All the matters which have been brought to the Minister's attention by the various economists and academics have blown up in smoke and regrettably the consumer has not got the benefit. The current chairman, Mr. Prasifka, is a more humble and modest person than his predecessor. He does not predict such savings off the wall but does his research first. Needless to say the outcome in all of these matters has been no reduction in food prices overall but much higher profits for the multiples. The same applies in the insurance market. We have very few players despite all the commitments made by the Minister's predecessor, Deputy Harney, and himself, about new players in the general insurance market. We have witnessed a levelling off of the insurance regime across employers' liability and public liability and some reduction in motor insurance but higher profits for insurance companies. The Fianna Fáil and Progressive Democrats policy has been to appoint more regulators and create the perception that something is happening. Unfortunately what has happened is that there are higher profits for multiples and insurance companies and little change for consumers and less choice. That is not good for any consumer.

The Government's policy and vision on the rights of consumers has produced a regulatory structure that is disjointed, fragmented and ultimately not very successful. We have a plethora of agencies, commissions and authorities, all operating to their own agendas and each seemingly distant from the end users of the services they are regulating.

What is needed is a rationalisation of these agencies and greater co-ordination between the Competition Authority and those agencies to enforce consumer rights and which embraces the existing regulatory authorities. There is no need for duplication of functions which can all be brought under a single or rationalised structure that has as its core focus the protection and service of consumers. A strong consumer mandate should be the focus of these agencies but unfortunately they lack direction. In Government I hope this is one area where Fine Gael can introduce radical reform that will benefit consumers in a real and meaningful way.

I welcome the decision to subsume the Office of the Director of Consumer Affairs into the National Consumer Agency. It is long overdue. Ms Carmel Foley who was very involved with the Office of the Director of Consumer Affairs has moved on to an important position in the public service. She did enormous work in trying to get information out to consumers. Regrettably, she did not have the necessary power, staff or resources to deal effectively with complaints in a modern economy. I recall after a rugby international match in the city she and her inspectors could enter a particular establishment but unfortunately they could do nothing about enforcing the penalties. No sooner had the inspector left than there was a lack of price displays. This was a grey area in the legislation that did not allow her to tackle the issue head on. I acknowledge that the Minister has increased the fine but at the time it was €127. It would not make much difference if the pub in Dublin city was full after a rugby international as it would not take long for €127 to be clocked up in the tills.

I am concerned about some aspects of the Bill. In the explanatory memorandum to the Bill, it is noted that "the detailed financial implications of establishing the new agency cannot be quantified at this stage." I find that strange. I expect the Minister to have an explanation in regard to the costs of the agency on Committee Stage. I am concerned also about the operational role of the National Consumer Agency on the basis as set out and I am not critical of the executive chairperson of the agency who has been handed a difficult job by the Minister.

The State has a central and critical role to play in respecting consumer rights. Unfortunately the State often deals consumers a poor hand, whether in failing to reform economic sectors in which it is dominant or in introducing changes to procedures or entitlements that negatively impact on the public as consumers of State services. A great deal more can be done in terms of charters and the various services, or proper codes of practice or opening up areas to much more competition in many areas of the economy.

All our clinics are not full of people complaining about the deal they have got from private sector companies. Their focus is usually on State agencies, local authorities, the HSE or development agencies. This is what the real world is about and where consumers feel hard done by. We could play a useful role in ensuring the National Consumer Agency is armed with the necessary powers to deal with those issues effectively on behalf of clients. If as Members of the Oireachtas we fail to get answers, how much more difficult it is for ordinary individuals and consumers? It is imperative that the public, as the consumer of these services, receives strong advice from a consumer advocate who commands authority, has the power and is well resourced. The private sector must be focussed on equally and the State must subject itself to review and criticism and must give redress for providing poor services to the public, as consumers, of often essential services.

In addition to the ombudsman there must be an agency that can comment publicly and sometimes critically on State policies as they adversely impact on consumers. I see the role of the National Consumer Agency expanded to ensure that policy perspectives are brought forward. Sometimes we see this through the National Competitiveness Council, even though in veiled language, it might understate the type of problems we have in certain areas. I would like to see the National Consumer Agency expressing to the Minister and Government of the day the policy changes that need to be made in respect of these matters.

I am also concerned by the fact the structure proposed under this Bill makes the National Consumer Agency so subservient to the Department and the Minister of the day. This is wrong. The agency should be more independent and have its own staff, resources and sources of funding. The Minister should be able to give a block grant to the agency and let it get on with its work. I fundamentally believe this is so important to consumers that the independence of the office will be critical to its proper function and success.

I also believe the Minister is giving too much power to the Department to dictate aspects of the business of the National Consumer Agency and that this will set and shape the agenda. If the agency is going to be an effective and independent advocate for consumers, the Minister should not think that it should be anything other than independent.

Instead of creating a watchdog, the Minister is giving consumers a neutered poodle which will be permanently tied to the railings of the Department in Kildare Street.

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