Dáil debates

Wednesday, 9 February 2022

Competition (Amendment) Bill 2022: Second Stage

 

3:47 pm

Photo of Michael CollinsMichael Collins (Cork South West, Independent) | Oireachtas source

The purpose of the directive is to empower the competition authorities of member states to be more effective enforcers and to ensure the proper functioning of the internal market. I have heard of a few problems from my constituents. One is a very serious problem that affects all industrial import and export businesses. As of July last year, all goods entering the EU from Britain and all British goods entering the EU are subject to VAT at the point of entry. This is totally pointless and just causes delays. All exporting companies have an economic operators registration and identification, EORI, number and immediately claim the VAT back. This layer is not productive as both the EU and Britain have to employ more people to administer it. All that happens is that goods are delayed and, when goods are delayed, it has a knock-on effect for businesses, especially small businesses in rural communities. We need to figure out a way to get rid of this double layered system, which is hampering competition.

Since Brexit, customs have been a nightmare. An Post is asking for very small amounts of VAT on goods imported from the UK. In many cases, Irish VAT has already been paid. One constituent of mine purchased a spare part from an Irish website, paid in euros and was charged VAT at 23% on the whole transaction. A few days later, he received an email from An Post asking for €1.46 plus an administration charge of €3.50. These are very small amounts of money. The administration costs must be much higher than the amount of money An Post is trying to collect, which cannot be good for the country and just results in long delays and makes us less attractive to the competition out there.

I will go back to an issue I raised on Leaders' Questions last week, that is, the cost of fertiliser. Where is the competition now? We need this sleeping Government to come on board and help the farmers. In all fairness, we need to keep the food chain running. I would appreciate it if the Minister of State would listen to what I have asked him. I have asked him and his Government colleagues to come up with a plan to help these farmers because no business anywhere can take a triple layer of costs on top of their existing expenditure.

Quite a lot of speakers have asked where the competition is in the meat industry. I remember standing with the farmers outside meat factories, particularly in Bandon in west Cork, some time back. They have been crippled by the situation they find themselves in. There is no competition in the meat industry. There is a monopoly. That must be ended. It cannot continue. People are struggling to get the best price they can in a terribly difficult situation. The fact that competition is not being allowed there and that one person is basically running the show in this country makes it almost impossible for anyone to get a fair price. Competition is the lifeblood of trade. I hope this Bill will help with that.

Competition issues can be considered at a national and international level but the local level must also be considered. There is a massive divide between urban and rural and that divide is getting bigger and bigger. The competition is also getting bigger and bigger. People in rural Ireland are finding it more difficult to survive. There is mass development in urban towns. I would not begrudge anyone that but, back down in Dursey Island in west Cork, a development has recently been brought to the Judiciary by those seeking to prevent it. This development aims to open up and rebuild a rural community. People in rural Ireland are finding they are not understood. They want fairness and to be allowed to compete. They want to be treated alike. There is now a possibility that An Taisce or BirdWatch Ireland could ruin a project worth millions of euros that would have given that community a chance to compete for employment and tourism in their locality, which is very important for them.

Many people cannot insure playgrounds or facilities in the community and voluntary sector because competition has never been weaker between insurance companies. We should be encouraging competition in this area. This has been allowed to go on for years and years, leaving some organisations and individuals to go out of business because they cannot afford insurance as a result of this lack of competition. I hope that this Bill will tackle that.

I know of one situation in west Cork. The West Cork Connect bus company is trying to survive. It is in competition with Bus Éireann, which has a monopoly and State funding. The owner is trying to provide a private service on the hour, every hour, from west Cork to Cork city but, instead of being encouraged, every barrier is being put before him to prevent him from succeeding. He is not looking for any State intervention. He just wants a licence to continue. Competition is an international and national problem, but it is certainly a local issue too.

When we have situations where the owner of a good company is willing to dip into his own pocket and to take people from Skibbereen, Clonakilty, Bandon, Bantry, Dunmanway and Drimoleague all the way to Cork city, every hour on the hour, that is a fabulous service. For some reason, though, a State company will get preference above that individual and his company, and that is something that must be examined as well.

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