M J Nolan (Carlow-Kilkenny, Fianna Fail)

I welcome this Bill. Anybody in public life will have come across examples of scams on children who use mobile phones. We must remember that mobile phones are a way of life in this country. We should distinguish between the minority of premium rate companies that are abusing the situation and the service providers that are largely well run, well organised commercial operations. The Joint Oireachtas Committee on Communications, Energy and Natural Resources has been examining this particular area for some time. We visited a number of the service providers and they run a very upfront, professional operation. It is unfortunate that the issues highlighted by the public get all the publicity and that we fail to see the good work being done by commercial mobile phone operators.

It is timely that this Bill is brought before us for the prior licensing of premium rate subscribers. It is frustrating to hear the problems experienced by individuals. Most families could highlight occasions when this form of extraction of money has been used against them or their extended families. A number of families have contacted me in the past two or three months to report blatant abuse by such premium rate services. We must try to achieve a situation where rates are more transparent so that when people are invited to enter a competition or to answer a question they are aware that by doing so they are signing up to a premium rate service. During the summer I saw an advertisement on television for one of these services, but I had to get very close to the television to see the small print which gave the cost of the service. That is not the way to do business.

I commend RegTel and ComReg on the work they are doing in this area. However, more must be done, although many people have yet to be convinced of that. The 6,000 complaints made to RegTel last year are evidence there is work to be done. There is a comprehensive provision in the legislation before us with regard to the licensing of premium rate services. This is welcome because in informal talks we have had with people in the industry we have been told their experience is that many of the operators are based overseas. These operators set up a shelf company here and work through that. When they have extracted a significant amount of money from Irish mobile phone users and RegTel or ComReg eventually catch up on them, they close down, liquidate in some cases, and leave. However, by then they have already amassed significant revenue from unsuspecting Irish customers.

I welcome the provision in the Bill that provides that the names of the directors of companies and their contact numbers must be submitted in order to secure a licence. I understand that currently many directors just establish another company. They change the name of the company, but it is the same individuals behind them. Having changed the name, they start up again and work for five, six or seven months before they are caught. It is important this provision is enforced. It is also important that conditions can be attached to licences, particularly where experience has shown some such companies have a track record of sailing close to the wind or have used shoddy practices in the past.

Section 8 allows the commission to revoke, amend or suspend a licence, but must notify the holder of the licence or proposer and afford them an opportunity to make representations within seven days of the commission's proposal. I note too that the commission can revoke, amend or suspend a licence within a short time. Where there is clear evidence of an abuse, it is important the commission, having investigated the matter, acts quickly.

Previous speakers have highlighted cases of abuse, the majority of which came to light through the use of prepaid mobile phones. In some of the cases I have come across of people with a bill pay phone, abuse has continued for a number of weeks and it is only when subscribers have received their bills that the abuse has come to light. At that stage a huge amount of expense has been incurred by the subscriber as a result of being unaware of the extent of the abuse involved through their phone usage or responses to questions sent to their phones.

The Joint Oireachtas Committee on Communications, Energy and Natural Resources has examined the question of cyber bullying. A number of companies have been proactive in trying to deal with this problem and over the next few months we will see even further advances with regard to the protection of children, young children in particular. We are concerned about cyber bullying and any legislation we introduce should include an open-ended section which, by ministerial order or regulation, will allow the Minister or regulatory authority to change or amend the regulations. Technology changes at such a fast rate that if we had to wait and depend on legislation to be passed, we would encounter significant difficulties before such matters could be resolved.

While self-regulation has worked by and large, the Minister and ComReg can make a serious input with regard to abuse by premium rate services. The majority of premium rate services are straightforward, upfront and positive and it is only in a minority of cases there is abuse through the premium rate text service. It is that area with which we are trying to deal in the Bill. We must regulate and sort out the problem of deliberately misleading information being put out in the form of an introduction or which sucks young people into a premium rate service. Self-regulation is not working in this area and regulatory authorities, not just here but overseas where the same problem exists, must introduce legislation to overcome the problem.

I welcome the legislation and hope it has a speedy passage through the House. I hope that amendments which will enhance, improve and strengthen the Bill will be taken on board by the Minister.

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