Michael Ahern (Cork East, Fianna Fail)

I thank Deputies for their contributions to the debate which has been both interesting and stimulating. It has demonstrated beyond doubt that the welfare of consumers is an important and topical issue, and that the Government is right to afford this legislation a high priority.

Before responding to the comments of individual Deputies, I wish to make a few general remarks. There has been much talk on the Opposition benches of the need for an ombudsman for consumers and a consumer rights enforcer. It is a grandiose title but at the end of the day that it all it is — a title. Whatever one might call a consumer organisation — this legislation gives it the title of National Consumer Agency — the fundamentally important factor is the extent of the powers and functions conferred on that organisation by legislation, and the extent of its duties and obligations to the consumer.

As a result of the enactment of this Bill, Ireland will have the benefit of an extensive and unequivocal list, set down in one statute, of commercial practices which are prohibited because they are unfair to consumers. In that respect the Bill introduces a much needed modernisation of our consumer laws. Furthermore, and despite criticisms from the Opposition side of the House, the Bill creates an enforcement agency with real teeth. Not alone will there be a strengthening of the penalties for breaches of consumer law, particularly for repeat offenders, but the National Consumer Agency is also being given a range of enforcement options not available to its predecessor, the Office of the Director of Consumer Affairs. The agency will have power to impose on-the-spot fines and will be able to accept undertakings from traders to comply with the law. It will be allowed to issue compliance notices to traders who it believes are breaking the rules.

In addition, the agency will be able to ask the courts to award compensation to consumers and the courts will have discretion to do this. The courts will be able to order traders to publish corrective statements but, perhaps most tellingly of all, the agency will be able to publish the names of all those who have broken the rules and been the subject of enforcement action. This new emphasis on a name and shame policy is a critical element of the enforcement options available to the agency. It is not only a matter of sanctioning offenders — albeit that naming and shaming is a powerful punishment in itself, particularly if imposed on top of fines handed down by a court — but also of publishing the names of offenders, which represents an important signpost for consumers when it comes to identifying those businesses that may adopt a cavalier approach to consumer rights. Many businesses for which a financial penalty may be inconsequential, no matter how large, might think twice about breaching these laws if it means losing customers. I look forward to seeing this particular provision of the Bill in operation.

The powers in the Bill are as extensive as they are new, and provide alternatives to what can often be expensive and protracted court proceedings. They will allow agencies to take enforcement action quickly in the best interests of consumers. The Bill is not just about enforcement, however, and that is why it represents such a fundamental shift in consumer policy. The Office of the Director of Consumer Affairs has done an excellent job on behalf of consumers since it was established in 1978. However, it was largely confined to enforcing the law as handed down to it and was never designed to be an advocate for consumers when it came to designing that law. As a result, the consumer's voice in this country was weak and uninformed. When it came to national debate, trade interests were usually best organised, most knowledgeable and best resourced. Consumers rarely acted as a group and their contribution to the debate was, through no fault of their own, sometimes patchy and inconsistent, while at other times entirely non-existent. That will all change with the passage of this legislation.

The National Consumer Agency will have a statutory right to comment on the implications for consumers of existing and proposed legislation. It will be resourced to carry out research and will be empowered to access information from other regulators so that it can always speak from an informed position on behalf of consumers. The agency will have a statutory role to educate and inform consumers, and to promote public awareness of consumer issues. These duties go some way beyond the remit of the ODCA and signal a new era for consumer protection. The emphasis is very much on empowering consumers, letting them know their rights, and encouraging them to be assertive and stand up for those rights. It is about providing remedies and redress when those rights are denied, but the legislation is also about encouraging traders to be fair, equitable and transparent in their dealings with customers. Businesses should regard a satisfied customer as a valuable business asset, and be prepared to work at guaranteeing that satisfaction.

Deputy Hogan referred to his party's own Private Members' Bill which was voted down in the House. That Bill did not go nearly as far as this one in preventing unfair trading practices and empowering a consumer enforcement agency. Neither did it make any effort to transpose the unfair commercial practices directive, which would have left us in breach of EU obligations.

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