Johnny Brady (Meath, Fianna Fail)

I also believe in promoting competition to keep prices down and strengthening competition laws to get the best deal for consumers. Much has been done in this regard. We have abolished the groceries order and amended the Competition Act to prohibit re-sale price maintenance, unfair discrimination and hello money in the grocery trade. While it may be too early to make a judgment, according to figures compiled by the Central Statistics Office the prices of products previously covered by the groceries order have fallen by 0.5% in the year to mid-January 2007. The prices of goods not covered increased by 5.1% over the same period.

We have removed the barrier to competition but it does not follow that prices will fall. The acid test of whether the abolition of the groceries order has been successful is whether grocery price inflation is lower than it would be according to other essential factors. We have increased funding for consumer protection substantially. The allocation for consumer issues in 2007 will amount to just under €8.4 million, an increase of 147% since 2004. The Competition Authority budget has been increased by 15% to €5.8 million, doubling resources in its cartel enforcement division.

We are determined to ensure prices are open and clearly visible to consumers so they can make their choices. In April 2003 the Government introduced new price display regulations to enable consumers see what they are buying and compare prices across goods. Shops must now display the cost by weight. We can compare the prices of biscuits, coffee or cereal per 100g irrespective of packaging. The Government also doubled the number of inspectors in the Office of the Director of Consumer Affairs.

Nevertheless, over the past decade, it has become apparent that by comparison with other highly developed countries, consumer power is weak in Ireland. In many areas of commercial and public decision making, the consumer has no voice. In many areas of daily life, consumers feel they have little power. In that context the Minister for Enterprise, Trade and Employment was right to establish the Consumer Strategy Group and ask it to make proposals for the development of a national consumer strategy. The Bill we are debating today is a result of the good work of that group.

The group commissioned the most extensive research ever carried out in Ireland on consumer issues. It revealed that the majority of consumers believe they are constantly being overcharged for goods and services. A large number believe they will not get satisfaction if they complain about poor quality or poor value in goods and services. Research conducted by the Consumer Strategy Group showed considerable gaps in policy and in the State institutions that support consumers. Ireland lags behind other countries in recognising the important role empowered and confident consumers can play.

Bringing the consumer agenda to the forefront of public policy requires close integration of consumer concerns into the better regulation agenda. There is no doubt that a process needs to be kick-started to shift the balance of power towards consumers. Doing so will not penalise Irish businesses or grind them down. It should strengthen them. In short, more consumer power will be good for consumers, businesses and the economy.

This is a major new consumer Bill. It replaces much of the existing body of consumer law with a modern, up-to-date statute that will provide consumers with the highest level of protection in their dealings with business. The new protection for consumers and overhaul of structures marks the biggest reform in 30 years. It will help to ensure that we have one of the strongest, most modern consumer protection regimes in the world.

The Bill includes bans and tough sanctions for 81 anti-consumer activities, including pyramid selling, prize draw scams and persistent cold-calling of consumers. It also formally establishes the new National Consumer Agency, which will have the funding and powers to act forcefully on behalf of consumers. It provides the agency with the power to protect consumers, and will prohibit a wide range of unfair or misleading trade practices. Traders who mislead consumers or act in an aggressive way towards consumers or who otherwise engage in the extensive list of practices to be prohibited by the Bill will be liable to fines of up to €60,000 or imprisonment for up to 18 months for a first offence, if successfully prosecuted on indictment. Lesser penalties will apply in respect of summary prosecution.

The agency will also be empowered to issue compliance notices and impose on-the-spot fines on errant traders. It will be able to accept undertakings of compliance with the law from traders as an alternative to court proceedings. It will be required to publish, on a regular basis, details of all traders who have faced enforcement action. Courts will be empowered to order offenders to pay compensation to consumers and will be able to require offenders to publish corrective statements. Undoubtedly, the adverse publicity of a name and shame policy can often be a more effective deterrent than a court imposed fine. This Bill leaves offenders with no hiding place in that respect.

A wide range of activity is prohibited by the Bill, from misleading consumers as to the price, characteristics and availability of a product, to exercising aggressive or undue influence on a consumer to enter into a transaction. Making false or misleading claims about a product, persistent, unwanted calling of consumers and operating prize competitions that require the consumer to make a payment or incur a loss before a prize can be claimed, are all outlawed by this Bill.

The principal function of the National Consumer Agency will be to promote and protect the interests and welfare of consumers. It will do that through enforcing the relevant provisions of the Bill and encouraging compliance with them. However, it is also being given a range of powers to ensure that it can be a powerful advocate on behalf of consumers in policy making and in public debate. The agency will be empowered to advise and make proposals and recommendations to Government on legislation that impacts on consumers, and will interact with other regulatory bodies to promote the interests and welfare of consumers.

The Bill also deals in no uncertain terms with the issue of pyramid schemes. The definition of such schemes is significantly strengthened to capture so-called "gifting" schemes, and it will be an offence to both promote and participate in such schemes. Offenders will face prosecution on indictment and be liable to fines of up to €150,000 and five years imprisonment. I did not know what pyramid schemes were until, unfortunately, my local town and the surrounding area was affected by one. Many local people suffered as a result of pyramid selling in the area. It had a serious effect on individuals and families. People thought that by investing hard earned money in the scheme they would make far more money. Some people even borrowed money to invest in these schemes. Unfortunately, they lost it all.

This Bill will safeguard people from such schemes. However, it will not help the thousands of people in my constituency who suffered. I thank the Minister for introducing this welcome Bill.

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