Billy Kelleher (Cork North Central, Fianna Fail)

It is accepted in the House that the Bill is well meaning but its full consequences need to be examined in much greater detail, as has been said by other speakers.

Reference was made to the Competition Authority in the context of the Competition Act 2002. The authority is completely independent and was set up statutorily in 2002. The Act was the culmination of a root and branch review of all aspects of competition law in the State undertaken by the Competition and Mergers Review Group. The group comprised social partners, economists, lawyers and people with expertise in the area and it reported in 2000. The Act was a follow-up to it.

This Bill must be put in the context of the current position on competition. Deputies from the Labour Party referred to the Irish Pharmaceutical Union and the HSE but should realise this matter has broader ramifications. The existing legislation was put in place primarily to protect consumers, to ensure the existence of open competition and to ensure an organisation would have teeth to investigate cartels and price fixing. It would be disingenuous of the Labour Party to suggest we should row back on this and should have an organisation without teeth that is incapable of investigating records to determine whether price fixing is taking place or whether cartels are operating. Fundamentally, the Competition Authority acts in the best interest of consumers and any diminution of its activity would undermine its credibility. It would really undermine its independence to ask for such a diminution and for the Government to have a say in the offices it can inspect.

Let me refer to speeches on the trade union movement made last night. We all understand the impact the Bill would have in this regard. According to the explanatory memorandum, if the Competition Act 2002 applied with full force and effect to trade unions and their members, trade unions would then revert to their old common law status as unlawful "combinations" and trade union leaders would be prosecuted as parties to a criminal conspiracy. The 2002 Act applies only to undertakings and associations of undertakings. For the greater part, trade union members are employees, not undertakings, and in the view of the Competition Authority, trade unions representing employees would never, when acting in that capacity, be considered as associations of undertakings. It is important that the Opposition's views in this regard not be let hang in the air uncorrected.

The State is supportive of the trade union movement and its role in society. Through the national partnership process, it played a dynamic role in paving the way for national prosperity in modernising our economy and accommodating change in creating a healthy climate for industrial relations. Through its participation on boards and many State bodies, it has contributed significantly, both in representing and vindicating the rights of its members and helping to shape our strong performance and rapid development. A difficulty arises, however, when a trade association acts on behalf of self-employed contractors. By engaging in fee negotiations for services provided, the trade association is, under competition law, engaging in price fixing. We can talk about the specifics of the Irish Pharmaceutical Union and the HSE but this Bill has broader ramifications.

Let me refer to the findings of the European Court of Justice on the Viking Line case referred to by Deputy Michael Higgins. It is complex in its balancing of the rights of freedom of establishment under the treaty against the rights of trade unions to take collective action in defence of workers' interests. This will require much more detailed analysis. All of these matters can be analysed in the context of the review of the Competition Act and all interested parties have been invited by way of public advertisements to participate. I am sure the debate last night and today will be taken into account.

A report was issued on the Laval case yesterday and could have ramifications. The detail of this will have to be analysed also.

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