Dáil debates

Wednesday, 16 April 2014

Competition and Consumer Protection Bill 2014: Second Stage

 

11:50 am

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Is rudaí uafásach tábhachtacha iad cúrsaí iomaíochta agus cosaint tomhaltóirí. Ba cheart don Rialtas an chumhacht a chur i lámha na ndaoine mar gheall ar na rudaí seo. This legislation provides for the merger of the National Consumer Agency and the Competition Authority into a single body to be known as the competition and consumer protection commission. These two extremely important agencies are to be distilled into one organisation. The Bill also provides for the regulation of certain practices within the grocery sector and amends the laws on media mergers by implementing the recommendations of the report of the advisory group on media mergers. Again, these are two extremely important areas - the grocery sector, which involves so many jobs in all parts of the supply chain, and the media sector, which is one of the pivotal elements of a functioning democracy.

Section 17 prescribes those organisations that will work with the new body. It does not mention Irish Water. Water charges are probably the biggest consumer issue facing people at this time. Although we in Sinn Féin have raised the matter a number of times with the Minister, he has failed to take our views into consideration. The Government has established a new governance model to manage, fund and deliver services which will be basically carried by the consumer and taxpayer. The new governance structure will include Bord Gáis, Uisce Éireann, the economic regulator and the Department of the Environment, Community and Local Government. However, we are worried that there is a critical omission in the oversight here. Who will represent the interests of the consumer in this so-called water reform process? Can the Minister give us confidence that this legislation will allow consumers to have full recourse to their experience with this new body and structure? Will the provisions and functions of the Consumer Protection Act 2007 now fully follow through to the citizens with respect to Irish Water? In other words, will the interests of consumers be protected in this legislation?

The National Consumer Agency represents the voice of the consumer. It enforces consumer legislation and defends the interests of consumers at the highest levels of the decision-making process. When we raised the need for stronger consumer oversight with the Minister and in particular with the Minister for the Environment, Community and Local Government, it was stated that the Commission for Energy Regulation, CER, which is the independent regulator for Irish Water, has the power to direct Irish Water to prepare a code of practice on any matter that CER considers necessary and appropriate to secure the interests of the customer of Irish Water. CER has the power to direct Irish Water to comply with a code of practice prepared in accordance with the legislation. CER may consult with Irish Water, the public or any other person it considers appropriate. The National Consumer Agency participated in the consultation on the establishment of the water services utility during 2012 and submitted proposals to the Department which will be considered in detail.

That is all fine but the fact remains that CER is a regulator. It is not a consumer watchdog with the real teeth necessary to protect the needs of the consumer in this area. It is also worth noting that the Minister for the Environment, Community and Local Government did not pay much attention to other needs of the consumer with regard to Irish Water such as set-up costs and where those moneys were being spent so how are we meant to have massive confidence in the Minister's approach to oversight of Irish Water? While the competition and consumer protection commission will automatically be under the new FOI legislation, the Minister could exclude it in the future by secondary legislation. Again, this reduces this House's opportunity to oversee that process.

The resourcing of the competition and consumer protection commission is extremely important. Indeed the Minister has lauded the fact that €170,000 will be saved by this new merger. However, the legislation notes that this organisation will be given extra powers to allow it to investigate a series of competition offences. There is a mismatch there to a certain extent. There is a reduction in money and an increase in functionality. While extra staff were given to the Competition Authority to improve enforcement in 2012, it is simply unacceptable for the Minister not to further resource a beefed-up mechanism which will oversee investigations. It is fine to have these powers on paper but unless the Minister puts in place the necessary resources to enforce them, they will not be effective. The alleged problems in the concrete cartel in this State have allegedly had the effect of increasing prices to the consumer and the State. The State is a massive consumer of concrete. The lack of a properly functioning market and competition in this sector has made it very difficult for those businesses that are compliant to be able to function. Without the necessary funds to enforce compliance, non-compliance becomes a competitive advantage. That is a real danger in any society where a compliant business looks at a non-compliant business and then decides it must become like this business if it wants to function in this market.

In any of these reforms, it is important that the Government does not just focus on the bottom line. It is also very important that the Government sets out to achieve regulation and oversight in a manner that improves the full market.

Investment in empowerment will bring about greater savings to the State in the long run.

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