Peter Fitzpatrick (Louth, Fine Gael)

The Competition (Amendment) Bill marks the completion of the requirements set out in the terms of the EU-IMF programme of financial support for Ireland. This Government, and particularly Ireland, has again lived up to its commitment; in this instance, to strengthen the enforcement of competition law. The Bill provides for new and increased sanctions for anyone who engages in anti-competitive activities. It is envisaged that the enhanced measures will be a more effective deterrent. The negative effect of anti-competitive practices should not be under estimated and it is the aim of this legislation to further protect and benefit the consumers and people of Ireland.

Ireland has not been immune to the effects of collusion and price-fixing. The car industry, the IFA and more recently the concrete industry are among the industries that have come under the spotlight in recent years. The benefits of competition to society are immense and far-reaching. Competition is the crucial driver of performance and innovation and it benefits everyone by enabling us to choose from an array of excellent products at affordable prices. Competition also encourages the adoption of innovation as companies evolve and new ideas flourish in the marketplace. This has never been more important to Ireland and, in particular, it is of crucial importance if Ireland is to rebuild itself and restore competitiveness.

Consumers stand to gain most from greater competition and the reduction of anti-competitive practices. Competitive markets encourage lower prices and greater choice. Fair and open competition means lower prices and greater choice and this is what the legislation will achieve. Limiting consumers freedom of choice stalls innovation. Impediments to innovation are a setback for the people and the country. Market conditions that permit a single person, company or entity to become the sole judge of price and quality set a dangerous precedent. Thus, the enhanced sanctions in this legislation should ensure a decrease in cartel type activity and price-fixing.

In addition, conditions that allow industry stakeholders to collude over commercial pricing or supply should be eliminated. Through severe sanctions, this legislation goes a long way to providing extreme deterrents where collusion is contemplated. Anyone considering such anti-competitive and ultimately corrosive actions must consider the implications of their actions very carefully. I expect a significant reduction in queries and complaints to the Competition Authority as a result of this legislation. Fair play and open competition in the market enables vendors and manufacturers to deliver a greater variety of competitive products to their customers and often results in lower prices and higher performance. When competition allows market forces to prevail, leading companies can offer the best products to a broader array of customers and consumers. This is only good news for Ireland.

Competitive pricing, product innovation and performance improvements, coupled with competitive practices, helped to ensure that Government authorities get the best value for the public they serve. Furthermore, transparent and unbiased procurement practices are essential components of open government and a healthy, free-market economy. This Government actively encourages such practices and is ever conscious of securing the best value from spending on behalf of the Irish people.

There are numerous reasons competitive markets are beneficial for consumers and the economy as a whole. This Government regards creating a competitive environment as a cornerstone of the supply-side economic policy. Vigorous competition between firms is the lifeblood of strong and effective markets. It encourages firms to innovate by reducing slack, putting downward pressure on costs and providing incentives for the efficient organisation of production. This results in consumers obtaining better value for money. As such, competition is a central driver of productivity growth in the economy and hence Ireland's international competitiveness.

A competitive market exists when there is a genuine choice for consumers in terms of who supplies the goods and services they demand. Competitive markets are characterised by various forms of competitions between sellers bidding to increase or protect their market share. The overall impact of increased competition should see an improvement in the economic welfare of Ireland. This is what Ireland needs and the legislation is enhancing the environment where such economic activity can grow. This economic activity is the very lifeline of Ireland and that is what the Government is providing. I welcome this Bill as forward-thinking legislation that will further aid the economic revival of Ireland. I have no hesitation in commending this Bill to the House.

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