Dáil debates

Thursday, 6 May 2010

Competition (Amendment) Bill 2010: Second Stage

 

3:00 pm

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)

I have raised these issues by way of Standing Order 32 and on the Adjournment but they have not been accepted for discussion perhaps because they will embarrass the Government. We all know of the shady deals of Fianna Fáil in government with personnel from the Galway tent. There has been a huge abuse of power. It is important to put on the record that there was a great deal of abuse of power and cronyism in the system and that that cronyism remains. Let us make no mistake about that.

The Bill proposes to allow the Minister to directly appoint temporary members to the Competition Authority for a limited period of six months with the option to extend this for a further six months. With a Government foot in the door, it is hard to believe in the independence of this authority. I support the Bill because there is no other option. However, I condemn the negligence of the Minister and Government which has led to the need for this legislation. This lack of foresight must be linked to the Government's total failure to properly regulate competition, which is the driving force of any sound economy. The work of the Competition Authority is particularly necessary during this time of economic recession. Healthy competition is good for Irish consumers and keeps down prices. To have a situation where the authority cannot function due to a lack of requisite members is an indictment of the Government. How can we be expected to climb out of recession with a Government that fails to give the necessary priority to competition regulation?

I did not get a chance to congratulate the new Minister on his appointment to this portfolio. I hope he does better than his predecessor because she was a disaster and her failure to have a hands-on approach to the issue of job creation has led the country to a position where 450,000 people are unemployed. My constituency of Longford-Westmeath has more than 15,000 unemployed people at present. This is a dreadful reflection and indictment not alone on and of the Government but also on the two Government Deputies in the constituency, Deputies Peter Kelly and Mary O'Rourke. They have to take some responsibility for the huge number of unemployed people in the constituency. Those numbers had never before been reached during the lifetime of democracy in this country.

What has happened is a scandal. Longford has not had a new industry for 20 years. There was too much interference five, six or seven years ago when the national spatial strategy was announced. There was political interference by none other than the then Minister for Finance, now Taoiseach, Deputy Brian Cowen. He developed the idea of having three cities in the midlands, leaving towns such as Longford and Portlaoise on the hind tit. They were left out of the equation entirely and this was wrong. What should have happened in the national spatial strategy was that one centre - Athlone - should have been developed in the midlands and all of the other towns in the region should have been feeder towns to it. That would have been proper planning for the midlands. However, it did not happen because of cronyism and political interference by the Government.

What has the Competition Authority done for small companies and the economic well-being of rural towns? In my town of Longford, large companies have set up in the town but then, for cost-cutting reasons, have moved to the outskirts. This does untold damage to the small companies that survive on the back of such large organisations. The economic heart is torn out of the town and the well-being of its business community is destroyed. I listened with interest to what Deputy Connaughton had to say on this issue. It is important that we, as a society, preserve small local shops while at the same time retain competition in the system for the sake of the consumer.

In the current economic situation, it is more important than ever that an organisation such as the Competition Authority should ensure that the breadth of its operations extend to the protection of hard-pressed small companies struggling for survival. This is happening in towns throughout the country, particularly in the midlands. The extension of town centre shopping malls has been a mixed blessing for rural communities. All is well when the flagship store is in place but its withdrawal is the death knell of rural communities and economies.

I am not sure what is the answer to this situation. However, it is an area of which I feel that the Competition Authority should be fully aware and it should be prepared to fight for the survival of small companies, which can still be the bedrock of rural economies. It is important that we do not lose sight of the special status of small shopkeepers and their particular place in the market. Real competition can take place only where there is an ever-increasing number of players in the market rather than the market being concentrated in the hands of a few high-profile players, many of whom in recent years had serious Fianna Fáil connections.

Consideration must be given to how predatory pricing, loss leading and the abuse of credit terms can be addressed. This is important. The ever-increasing demand for "hello" money is extremely damaging. Abusive practices have been in place and they impact adversely on suppliers, smaller competitors and consumers. We must ensure that wholesale discounts are passed on to the consumer, and that local shopping facilities are safeguarded for the benefit of the most marginalised in our society, who would be first to suffer from the loss of the small retailer. This is realistically the bottom line and the protection of both the small trader and the consumer must be ensured.

It is important that the Competition Authority remain as a strong and independent advocate of competition policy and law in Ireland. It needs to attract experienced high-calibre members to ensure that it also maintains its reputation internationally. This independence must not be challenged by the fact that a Minister is now in a position to directly appoint members to the authority, even if it is on a temporary basis.

There is a very strong feeling that Fianna Fáil Ministers cannot be trusted. This is regrettable and Fianna Fáil itself has led the general public to believe this. People are completely disillusioned. Fianna Fáil cannot be trusted in any area of the economy at present because of the amount of corruption that has been in the system in recent years and which continues. Most people in Irish society, including me, believe the only way to clear the air is to have a general election and the sooner, the better. If the Taoiseach is not prepared to go to the park and bring about a general election then the President should intervene and tell him the game is up and in the name of God to get out before the country is completely ruined by this Fianna Fáil-led Government.

While supporting the Bill, Fine Gael will seek the approval of the Joint Oireachtas Committee on Enterprise, Trade and Employment for any new appointments in the interests of improving transparency and to promote the political independence of the authority, which has been dented by the intervention of the Minister in these temporary appointments. This is a good opportunity for the Government to review the operation of the Competition Authority. Unfortunately when the Bill is passed, anyone other than the Government will be kept out of the process. Government appointees, no matter how qualified, raise the spectre of Government control. While supporting the Bill, I have no doubt that my colleague sitting in front of me, Deputy Leo Varadkar, will table a number of amendments.

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