Tom Hayes (Tipperary South, Fine Gael)

I am sharing time with Deputies Corcoran Kennedy and Kyne. I am grateful for the opportunity to speak on the Competition (Amendment) Bill 2011, which has been welcomed by many of my colleagues in this House. There is no doubt that anti-competitive practices have cost the State billions of euro in recent years. It is estimated that the abuse of company law costs the State approximately €4 billion per year. Under no circumstances should such abuse be tolerated, particularly at a time when the country is in dire economic straits. There is an old saying that competition is the life of trade. It is important, however, that competition is always fair.

The Bill will strengthen the enforcement of competition law in this country. It provides for new or increased penalties, introduces more effective deterrents and ensures an improved sanctions regime for those who engage in anti-competitive practices, such as price fixing and cartels. The fine on criminal conviction for hard-core offences will be increased from €4 million to €5 million and the maximum prison sentence will increase from five to ten years. Fines for summary convictions will be increased from €3,000 to €5,000 and judges will no longer be able to dismiss cases based on the trivial nature of the offence.

Experts have regularly highlighted the expense associated with investigations into infringements of competition law. Provision is made in the Bill to order a person convicted of an offence under the Competition Act 2002 to pay costs to the Competition Authority or ComReg.

The aforementioned provisions will act as a deterrent for potential offenders but it is also important to prevent offenders from repeating their crimes. This is why a person convicted of a breach of competition law is automatically disqualified from being a company director or involved in the promotion, formation or management of a company. This provision will be extended to all contraventions of sections 4 and 5 of the 2002 Act and will serve to protect law-abiding companies against those who seek to make profit with disregard for the law.

The issue of price fixing by Irish concrete companies has been raised in my constituency and is now getting the national attention it deserves. In June 2011, Thomas Goode of Goode Concrete claimed to be involved with his rivals in illegal practices aimed at maintaining prices at artificially high levels. Deputy Mattie McGrath spoke about CRH and the smaller companies which were driven out of the market in the constituency we represent. A number of companies which were established in Tipperary South to quarry limestone rock have gone out of business over the years.

Thomas Goode's allegation is particularly important given the amount of business the companies he cited do with local authorities. They are paid out of the public purse with money that is difficult for the local authorities to find. When budgets are being drawn up for roads and other local needs or when councils have to make decisions on road repairs, they have to bear in mind the cost of materials. Why, at a time when house prices and labour costs are falling dramatically, is the cost of building materials not decreasing? I have been told by builders that the cost of building materials is not decreasing. I urge the Competition Authority to investigate this issue. Departments and local authorities are going to great efforts to cut costs but their suppliers need to respond.

Retailers and supermarket chains are another group which is being ignored in regard to investigations and regulations. The IFA was subjected to searches but it was not the other way around. Certain major supermarket chains have a lot to answer for and, if competition is the life of trade, we should reconsider the maximum size permitted for outlets on the edge of our towns. Small retailers are coming under considerable pressure from the large supermarkets outside many towns.

The issue of the below cost sale of alcohol by certain major supermarket chains is regularly raised with me by my constituents. This kind of marketing is not only irresponsible but also puts local shop owners under pressure. It is a major problem, although I note it has been addressed by the Government in recent days.

With more people choosing to drink at home, it is time to address this issue before any long-term damage is done to society. If we address it, we will not only send the right message about enjoying alcohol responsibly and in moderation but also help countless small businesses throughout the country which are struggling to make ends meet. I urge that this issue be dealt with.

Publicans have gone through major changes. Consider the number of pubs that have closed. We are losing a great way of life. The pub scene, regardless of what one might say about it, attracted tourists and neighbours who came in to chat. Where we are going with the sale of alcohol, particularly in the big supermarkets, is causing huge difficulties. This is an issue we must address.

See this speech in context