Michael Ahern (Cork East, Fianna Fail)

In order to provide a proper answer it is necessary to examine what the order did. The groceries order stopped retailers competing and allowed wholesalers to fix minimum prices for grocery products. This is known as price fixing and is an offence under our competition laws. Deputies will be aware that in the recent past a number of individuals have been subjected to criminal sanctions for engaging in such activities in other sectors. The groceries order not alone legalised price fixing in the grocery sector, it made it compulsory.

There was a general consensus that Ireland was among the most expensive countries in Europe in which to buy groceries and all of the evidence suggested the order contributed to this. While CSO figures show that prices are moving in the right direction the real impact of removing the order will be felt over time as new entrants join the market, existing smaller participants expand their operations and competition among retailers increases.

Deputies Hogan and Upton asked about the resources of the new National Consumer Agency. It will have a budget that, when combined with that of the Office of the Director of Consumer Affairs, ODCA, will amount to €8.4 in 2007. Future allocations will depend on the work programme devised by the board of the agency and will be decided as part of the Estimates process. This year's budget is almost twice that available to the ODCA in its own right and the NCA will have its own staff so I reject any suggestion of a lack of independence.

Deputy Hogan asked about the application of this Bill to business to consumer transactions. This is a key part of the unfair commercial practice directive and we cannot go beyond its terms. However, it is also right that the NCA's resources and enforcement efforts should focus on consumers, and not be deflected to matters concerning business to business transactions.

Deputy Hogan also wondered about efforts to restrict the rights of the NCA when appearing before Oireachtas committees. There is no intention to do this and Deputy Hogan might like to know that the Minister for Enterprise, Trade and Employment, Deputy Martin, will be sympathetic to an amendment in this regard on Committee Stage. The NCA will be empowered to conduct and publish price surveys for the benefit of consumers.

Deputy Upton referred to the impact consumers in the UK have had on banks and banking fees and I agree entirely that this is a good example of how consumers can yield considerable powers when they act in concert. I encourage Irish consumers to learn from the experience of UK consumers.

Deputy Upton also referred to food labelling, in particular the marking of origin on food products, and I sympathise with her views. However, this is primarily a matter for the Minister for Agriculture and Food, Deputy Coughlan. While the Bill does not include a general prohibition on misleading consumers regarding the geographical origin of products, the NCA will enforce this provision and will be an advocate for stronger regulation in this area if it sees it as warranted. The NCA will be empowered to liaise with the Food Safety Authority of Ireland with regard to the issues raised by Deputy Upton.

I agree with a great deal of what Deputy Upton had to say, especially as she highlighted a number of important consumer issues related to food labelling. Many of these issues will be examined by the NCA when it is established on a statutory footing because the Bill gives the agency this power.

I agree with Deputy Upton's comments on ringtones and the ODCA tackled this issue with a good deal of success but the NCA will remain vigilant with regard to such practices. The cross-border aspect of the unfair commercial practices directive, UCPD, allows for co-operation with enforcement agencies in other jurisdictions to tackle such issues.

The issue of policing consumer protection in the area of Internet trading was raised. This is an increasingly popular way of transacting business and the provisions of the Bill apply to Internet trading as they do to all other forms of trading. EU cross-border infrastructure allows for co-operation between enforcement agencies in different jurisdictions making for easier policing of the activities of Internet traders throughout the 27 member states. This type of transaction is also governed by an EU distance selling directive that is currently being reviewed by the European Commission. My Department will actively participate in that review.

Deputy Morgan inquired about estate agents and the practice of arranging ghost bids on properties. This will be prohibited by section 43(2)(b)(ii) of the Bill.

Regarding Deputy McHugh's point, local authority services for which a charge is made are covered by this Bill.

I thank the Deputies who have taken part in the debate on this Bill which was supported on all sides of the House. I thank the officials for the work they did in recent months and I commend the Bill to the House.

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