Paschal Donohoe (Dublin Central, Fine Gael)

The wealth must be created in the first instance and that is why the type of policy to which I refer is required. The greed which can motivate people to engage in the type of activity which is clearly not in the public interest can sometimes be driven by a rational calculation to the effect that if the level of fine to be imposed is not too great, then it would be worth it to take a chance and proceed with such activity. The low fines which obtained in respect of this kind of activity in the past were recognised as being a failure. Steps are being taken in the legislation before the House to increase those fines to make them a more potent deterrent.

The second element of the legislation I welcome is the specific reference to a regulatory body which can take action against someone it believes to be in breach of the law. The legal costs incurred by said body in respect of individual cases will be paid by any person convicted of being in breach of competition policy. I hope this will create an environment within which authorities of this nature will be more willing and able to take the type of action that is required.

The third element I welcome is the fact that private citizens will be able to play a greater role in ensuring competition policy is enforced and in taking action on their own part. In that context, I quote from a paper, entitled "What Happened to Competition Policy?", by Mr. David McFadden and Mr. John Evans, delivered at the recent Kenmare Economic Conference. On the issue of private enforcement, they state:

What seems remarkable, however, is the fact that the private enforcement provisions contained in the 1991 Act were retained unchanged from the 1991 Act up to and including the 2002 Act. As the private enforcement model had not worked under the 1991 Act and was superseded by a public enforcement model, why then retain the private model?

They make the point that there were clear shortcomings in allowing persons to take successful private action. Hopefully, the Bill will make it easier for persons to do so. Assuming the only ones who will take action are the regulatory authorities and not making it clear that private citizens can take action and can be rewarded for it, is clearly an omission and is something on which the Bill will make progress.

I will conclude with two observations on the Bill. First, as important as competition policy is - I speak as somebody who worked in the retail and manufacturing sectors and has experience of many of the tensions to which other speakers have referred - we need to ensure consumer policy does not end up being the poor relative. One of the matters being looked at is the merger of the Competition Authority and the National Consumer Agency and we need to ensure the rigorous implementation of competition policy does not come at the cost of diluting consumer standards and that consumer policy and the protection of the consumer is still kept to the fore and is vigorously prosecuted.

The second point concerns regulatory capture. We have seen to our considerable cost the number of times on which regulatory bodies were captured and influenced by the industries that they were meant to regulate. The additional power that will be made available to the courts and to the Competition Authority by a body such as this does not absolve others of their responsibility in ensuring such policy and law is implemented purely with the national interest in mind. As such, some of the other Bills the Government is bringing forward must be recognised. The additional measures that are being put in place to encourage whistle-blowing, included in a Bill that came through the House a fortnight ago, continue to be important to ensure that a Bill such as this can be properly implemented.

I welcome this legislation. It forms part of suite of measures that the Government is implementing on the structure and costs of the legal sector. It also is accompanied by a measure on the structure and costs of general practitioner services and dealing with some of the impediments to persons entering that sector. All of these are measures that will make a significant contribution to ensuring Ireland continues to be a place in which business can flourish, but not at the expense of consumers or those who depend on a level playing pitch being created, in which manufacturers and businesses can operate and from which consumers can benefit.

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