Dáil debates

Thursday, 6 May 2010

Competition (Amendment) Bill 2010: Second Stage

 

3:00 pm

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)

To show the serious intent of the Government, we will give an outline of an overall response to the recommendations issued by the Competition Authority on a six monthly basis.

On the Towards 2016 commitment on certain classes of vulnerable workers, namely, voice-over actors, freelance journalists and session musicians, an issue raised by Deputies Varadkar, Penrose and English, this issue arose in respect of an exemption from competition law and is being considered in the context of developing the consumer and competition Bill which will be published later in the year.

Deputy Varadkar referred to Oireachtas scrutiny for temporary, whole-time members appointed under this legislation. The Bill does not foresee such scrutiny. To ensure persons appointed are suitable for the positions, appointees to these temporary positions must, in the opinion of the Minister, possess sufficient expertise in or experience of one or more of the following areas, namely, law, economics, public administration, consumer affairs or business generally.

On the level of fines, under the 2002 Act the courts may impose a fine in respect of hard core competition offences of up to €4 million or 10% of turnover. They may also impose a term of imprisonment of up to five years.

The vacancy from January 2009 was not filled in light of the announcement that the National Consumer Agency and Competition Authority were to be merged. The authority was statutorily properly constituted, even with the vacancy. An issue arose when the chairman resigned, at which point we appointed a temporary chairman.

Deputies Penrose and Connaughton raised issues regarding a code of conduct for the grocery goods sector. As Deputies will be aware, the renewed programme for Government includes a specific commitment to implement a code of practice for doing business in the grocery goods sector to develop a fair trading relationship between retailers and their suppliers. It also makes a commitment to review the progress of the code and, if necessary, introduce a mandatory code. My predecessor, the Tánaiste, Deputy Mary Coughlan, appointed Mr. David Byrne SC in late March to act as a facilitator in the development of a code. Regrettably, Mr. Byrne notified me last week that he was not in a position to continue to act as a facilitator. I am in the process of identifying a replacement appointment.

The forthcoming consumer and competition Bill will contain enabling provisions allowing for the establishment of a statutory code. I hope the process of establishing a voluntary code will enable it to be used as a basis for any statutory code. The Government is strongly committed to ensuring Ireland continues to have vibrant agri-food and retail sectors, particularly given the importance of these sectors to the national economy. The Government, therefore, considers it important that there is a balance in the relationship between the various players in the grocery goods sector. The introduction of a code of practice, as provided for in the programme for Government, is intended to achieve such a balance, taking into account the interests of all the stakeholders in the grocery goods sector, including those of consumers, and the need to ensure there is no impediment to passing on lower prices to consumers.

The review of the Competition Act 2002 involved an in-depth public consultation process which was undertaken in 2007 and 2008. Many submissions were received, including some which raised a wide range of complex, specific legal issues. These have been analysed and proposals for amendments will be included in the forthcoming Bill.

Deputy Penrose referred to demands for what is known as "hello money" from suppliers. This practice is prohibited under competition law. No prosecutions have occurred owing to the unwillingness of parties to give evidence in court in this matter.

The retail planning guidelines are being reviewed by the Minister for the Environment, Heritage and Local Government whose Department is engaging with the Competition Authority on the issue.

Again, I thank Deputies who contributed to this useful and informative debate. I look forward to constructive engagement on the details of the proposals on Committee Stage.

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