Jennifer Whitmore (Wicklow, Social Democrats) | Oireachtas source

I am standing in for my colleague, Deputy Catherine Murphy.

Competition is a vital element in our economic system. When operating at its best, competition results in better outcomes for consumers and society in general. A variety of options in the market leads to better pricing, better quality and innovation. When it comes to competition policy, the fundamental concept is about applying rules to make sure business and companies compete fairly with each other, resulting in the best outcomes for the consumer.

The changes this Bill will bring to the area of competition law in Ireland are, by and large, welcome because the policy we currently have in place is shamefully insufficient. As it stands, we have no way to meaningfully enforce against anticompetitive practices. This was pointed out by the Hamilton review group, which identified a number of weaknesses in resourcing the bodies charged with preventing illegal practices and enforcing the law.

Reports this week on anticompetitive price signalling in the motor insurance industry really drove home how inadequate is the current policy. The CCPC found that over a 21-month period in 2015 and 2016, AA Ireland, AIG, Allianz, Axa, Aviva, FBD and Brokers Ireland all may have engaged in anticompetitive behaviour that resulted in premiums rising for consumers across the country. We cannot say these firms acted illegally and the CCPC was not able to bring the case to court because the cost of doing so would have been prohibitive. We also cannot say these firms were fined for their actions because the commission does not have the power to issue fines. Instead, we can only say that six of the firms signed a legal commitment promising to comply with competition law, and one would think that would be a given. Brokers Ireland refused to sign any such commitment.

This example illustrates exactly why it is so important that our competition enforcement bodies have teeth and the resources to use them. The CCPC states: "The most the CCPC can achieve at present, in a significant number of competition cases, is to seek commitments that the business will cease the practice or behaviour and not do it again." It really is just a slap on the wrist. There is absolutely no accountability for anticompetitive practices currently and no real repercussions at all for illegal actions that cost the consumer.

For so long, we have under-resourced our enforcement bodies in this country and we have been consistent in that poor practice across all areas of policy from anti-corruption bodies to wildlife crime units. This week I received indication that only one person has been allocated to the wildlife crime unit within the National Parks and Wildlife Service. That is laughable when we consider all the discussions and chat about having a zero-tolerance approach to wildlife crime. One person will never be able for that task.

This Bill is going to completely reshape the role of the CCPC and ComReg but it seems to be silent on the details of the extra resources these bodies are going to receive alongside all their new responsibilities. Will the Minister of State outline what extra resources will be made available to them upon enactment of this Bill?

We have such a dependence on large multinational corporations in Ireland. It has been the policy of successive Governments to attract more foreign direct investment and encourage more corporations to establish their European bases of operations in Ireland. If we want to be a base for this kind of massive economic activity, we need to have the infrastructure in place to combat economic crime. The impact of anticompetitive practices or corruption in this sector is international and it can deal with a colossal amount of profits and some very expensive lawyers.

The maximum fines in place for breaches of competition law under this Act can run to 10% of global turnover. It is very welcome to see a sanction of this size and it really could make some businesses sit back and think about their behaviour. The Bill also provides enforcement bodies with powers to conduct unannounced inspections subject to warrants and compel businesses to hand over passwords and documentation. There is also the introduction of a specific offence for hindering an investigation.

All of these investigative and surveillance powers are needed to detect white-collar crime, especially when the nature of the crime becomes harder to detect, with cartels becoming more sophisticated in their efforts to hide their practices from enforcement agencies. Of course, these powers must be balanced with the rights of the individual, and I acknowledge the issues raised by the enterprise committee relating to the surveillance powers proposed in this Bill. Will the Minister of State outline in wrapping up or in a follow-up with Deputy Catherine Murphy how exactly the surveillance powers will operate and what kind of oversight mechanisms will be in place?

There are very welcome measures being put forward in this Bill but fundamentally we need a commitment that the enforcement bodies that will be in charge of implementing those fines will be adequately resourced. Price-fixing, market rigging and all the various kinds of anticompetitive practices are part of a much wider issue of corruption in the private sector, and it is a problem we are just not equipped to handle in this country. We have no effective means of preventing, investigating and prosecuting corruption.

There is no overarching or consolidated approach to combating corruption in the private sector or the public sector. A look at the State's anti-corruption website gives us a clear picture of the fragmented approach, with 16 bodies listed as responsible for tackling corruption. Ireland's anti-corruption response is incredibly fragmented by international standards. A 2020 survey conducted by the French Anti-Corruption Agency found that 84 of 114 countries surveyed had a single agency approach. This is an approach the Social Democrats has been championing since it was founded and one which, unfortunately, the Government is opposed to.

It is difficult and rare to see successful prosecutions of corrupt practices in business life in Ireland. Even after costly and lengthy tribunals of inquiry, there have been few consequences for those against whom negative findings have been made. There is a strong public perception of a golden circle in Irish society, the members of which are accountable to no one and who regard themselves as untouchable. The EU Commission's 2017 Eurobarometer on corruption found that 68% of Irish people believed corruption was widespread across society, with a particular lack of confidence in the banking and financial sector. We must examine the possibility of having a single, independent anti-corruption agency as opposed to having many fragmented agencies that do bits and pieces rather than the totality of the work that is required.

Apart from the lack of confidence Irish people have in particular business sectors and in our ability to deal with corruption, fundamental to all of this is the undermining of democracy. It has a fundamental impact on how people engage with our institutions and how people trust them. It undermines our ability for cohesiveness and the ability to work as a community and as a society. It is not just about addressing corruption in those businesses. It is also about providing a more trusting society for everybody.

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