Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

The proposed amendment to section 130 relates to renewal of subscription contracts. This is a highly complex area involving a number of regulated markets, including utilities, electronic communications and financial services, for which my Department has no policy responsibility. Any amendment of this kind would require consultation with sectoral regulators and other sectoral stakeholders as well as other Government Ministers.

The new rules on differential pricing in the insurance sector, which are to take effect in July, differ from those proposed in the amendment. Those rules allow for discounts to new customers and will prohibit only the charging of a premium to a renewing customer that is higher than the premium charged to a renewing customer with a similar risk profile who is renewing a policy after the first year with the same company. It would be inconsistent and undesirable to have different rules and different pricing for different sectors. The suggested amendment effectively proposes that a contract term is always unfair if its object or effect is to require a consumer who is renewing a subscription to pay a higher price for a service than a new subscriber. As such, its inclusion in section 130 is at odds with the section in that it bypasses the criteria for the assessment of the unfairness of the contract terms set out in the section.

If the Deputy agrees to withdraw this amendment, I will undertake to look at bringing forward a Government amendment on Committee Stage in the Seanad. We did try to do that on this Stage but the timeline was too short. This will allow officials in my Department to engage with Parliamentary Counsel to ensure that the Government amendment meets with the spirit of the Deputy's intention but in a legally sound way, particularly in addressing the point I made earlier about the contract term always being unfair. I get what the Deputy is trying to achieve, and it is exactly what Deputy Sherlock said the last time.

I must point out that the inclusion of any such provision in the Bill does not mean that it will be commenced with the rest of the Bill, but it will show the Government's intent and will allow such time for consultation with other Government Ministers and sectoral regulators to take place.

I am pleased to report that the Competition and Consumer Protection Commission, CCPC, has already commenced research into pricing practices across various sectors and how they influence consumer behaviour. The work was motivated by the same concerns that prompted the Deputy's proposed amendment. The CCPC intends to publish a report towards the end of this year and its findings will play a crucial role in informing the potential commencement of the proposed provision. It is my clear intention, however, and I have said this to my officials, to bring forward an amendment on Committee Stage in the Seanad, bearing in mind that we may not be able to commence it at the same time as the rest of the Bill. We have a legal requirement from a European perspective as to when the Bill has to be transposed before we potentially face fines. I want to accept this amendment because I share the aspirations of Deputies Kelly and Sherlock. My compromise is to bring forward an amendment the provisions of which can be commenced at a later stage than the rest of the Bill while giving a clear commitment to try to achieve what we want to achieve.

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