Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 66: To ask the Minister for Enterprise, Trade and Employment his plans to review competition law here; and if he will make a statement on the matter. [37999/05]

Micheál Martin (Cork South Central, Fianna Fail)
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The Government, at its meeting this morning, approved the text of the competition amendment Bill 2005. This will strengthen the Competition Act. I plan to publish the text as soon as practicable allowing for the fact that the Bill must now be printed. It will repeal the groceries order and amend the Competition Act to prohibit resale price maintenance, unfair discrimination and so-called hello money in the grocery trade. I hope that the legislation will be enacted as soon as possible.

The Competition Act is one of the most modern competition statutes in the world and it has been working very well in the relatively short time since its enactment in 2002. The Act introduced many improvements in the law and the way in which it is applied. For example, the system for regulating mergers and takeovers in the economy was made more open and transparent, with reasoned determinations being published in respect of each case notified to the Competition Authority. This change has proved to be very successful.

The independence and powers of the authority were substantially increased under the 2002 Act and its resources have also been enhanced since. A second mergers division was established earlier this year and the Government has committed to making further funding available to the authority in 2006 for the purpose of strengthening its cartels division.

While I have no immediate plans for a formal review, my Department continues to monitor the operation of the Act on an ongoing basis in conjunction with the Competition Authority.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I thank the Minister for his reply and I welcome Cabinet approval for the changes he wishes to make. I look forward to their introduction in due course. Given that the Competition Authority does not have a chairman, its anti-cartel division does not have a head and another member of the authority, Mr. Hennebry, resigned recently, a departmental official is needed for a quorum so that the authority can make decisions. That does not indicate the Minister has ensured a well resourced body and I ask him to do something about this. Did the Minister watch the "Prime Time Investigates" television programme last night about car dealerships and, if so, has he an opinion on it?

Micheál Martin (Cork South Central, Fianna Fail)
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The resources of the Competition Authority will be increased under next year's Estimates and the cartels division will be expanded. I met the former chairman of the authority late in the summer prior to him securing a new position in Britain. He was entitled to do that and we will go through the normal processes to find a replacement. However, he indicated the need for the authority to concentrate on cartels in the economy and he suggested that an important initiative I could take would be to secure additional funding in next year's Estimates to create a new division in addition to what is in place to pursue anti-competitive cartels that do not give the consumer a fair deal.

I do not want to comment on current cases and a file has been submitted to the Director of Public Prosecutions by the authority regarding the subject matter of last evening's programme. We are endeavouring to eliminate the practices highlighted in the programme and it is one of the reasons the Government sanctioned an amendment to the competition Bill relating to the groceries order. The order, in so far as it set a minimum price so that one could not sell below the net invoice price, inadvertently incentivised price fixing, which has no place in the economy and which the House should not attempt to protect or shelter.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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It is interesting that the Minister takes his view from the chairman of the consumer strategy group, who indicated in her submission to him last July that if the groceries order was abolished, the price of food products would reduce by 9%. However, she has revised that to a reduction of 3%. Circumstances can change in a few months following a decision.

The Minister did not reply to the question whether he had been briefed on the contents of last night's programme by the Competition Authority, but I am sure he was. When was the authority first informed about an anti-competitive cartel and alleged collusion in the motor trade and what did it do about it?

Micheál Martin (Cork South Central, Fianna Fail)
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The bottom line is the Competition Authority is independent.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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It is, but the Minister of the day is briefed by its officials.

Micheál Martin (Cork South Central, Fianna Fail)
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The Minister of the day does not engage with the authority in respect of specific investigations and so forth, nor would it be appropriate to do so.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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He or she is briefed.

Micheál Martin (Cork South Central, Fianna Fail)
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We must be careful about how such investigations are progressed. The matter is with the Director of Public Prosecutions.

The decision to abolish the groceries order was based on analysis undertaken by departmental officials and clear conclusions that it was an anti-competitive measure, which has no place in the modern economy. That was the motivating factor behind the decision to abolish the order. I never got into the guessing game about how much prices would reduce but the order kept prices artificially high. The Competition Act 2002 enhanced the independence of the Competition Authority and the powers and penalties that can be applied regarding transgressions of competition law.