Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 1: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the recent Supreme Court decision in a case taken by the Competition Authority against the Irish League of Credit Unions which was lost by the authority; if the authority has made a contingency provision for the costs of the case; the impact that an award of costs against the authority will have on its work programme in view of the fact the award could absorb much of their annual budget; the location where additional funding for the authority will come from in the context of his Department's other priorities; and if he will make a statement on the matter. [19313/07]

Micheál Martin (Cork South Central, Fianna Fail)
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A Leas-Cheann Comhairle, guím gach rath ort i do chuid oibre as seo amach agus tá súil agam go mbeimid go léir in ann comhoibriú leat sa todhchaí.

Brendan Howlin (Wexford, Labour)
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Le cúnamh Dé.

Micheál Martin (Cork South Central, Fianna Fail)
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It is great to be here, a Leas-Cheann Comhairle, to congratulate you on your position and wish you every success. Not so long ago you were asking me the questions and on this occasion you are refereeing.

I am aware of this Supreme Court decision which arises from the first ever court decision in an abuse of dominance case brought by the Competition Authority.

Following a full hearing of the issues, the High Court found in favour of the Competition Authority in October 2004. The High Court's decision was appealed to the Supreme Court by the Irish League of Credit Unions, ILCU. In May 2007 the Supreme Court overturned the High Court's judgment that the ILCU had abused its dominant position in the market for savings protection for members' deposits in credit unions. This case was the first time the Supreme Court was called upon to adjudicate on a substantive issue in Irish competition law and as such sets an important precedence for competition law.

Elements of the question referring to a contingency provision for the costs of the court case and the impact of the costs on the authority's work programme relate to operational matters for the Competition Authority. The authority is the independent statutory body responsible for the enforcement of competition law in the State. Its mandate and functions are set out in the Competition Act 2002, as amended. In particular section 29(3) of that Act provides that the authority shall be independent in the performance of its functions.

However, I understand that as of yet, no award as to costs has been made in this case. In the event of an award of costs being made against the Competition Authority, I understand it intends to absorb as much of those costs as possible from within its own budget without impacting on its work programme. Any request by the authority for additional funding will be considered at that time in the context of the Department's extant priorities.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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A Leas-Cheann Comhairle, I wish to congratulate you on your appointment. It is my first opportunity to do so. I was familiar with your previous role and I was delighted that we could work together on that occasion, and I look forward to working with you in your new position.

Brendan Howlin (Wexford, Labour)
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Go raibh maith agat.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The motivation behind the question is to ask the Minister for observations he might have on the Competition Authority taking on a voluntary group like the Irish League of Credit Unions at a time when there are many areas where there are anti-competitive practices and where there is probably a more urgent role to establish precedent in anti-competitive practices. The fact that a voluntary organisation like the credit union movement would be singled out by the Competition Authority for such action would indicate there is a motivation of which I am not aware and on which perhaps the Minister might be able to throw light.

Would the Department be asked for advice by the Competition Authority at any stage about priorities in anti-competitive practices? I am also conscious that the total budget of the Competition Authority is approximately €5 million and the costs associated with this case will run in excess of €2 million. What will happen the other parts of the work programme of the Competition Authority arising from those figures? If the Minister is concerned about it, what action will he take?

Micheál Martin (Cork South Central, Fianna Fail)
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Let us get matters straight. The 2002 Act set up the Competition Authority as a statutory independent body. The Oireachtas, including Deputy Hogan, took that decision on the basis that it probably came to the conclusion that political interference in the operational work of the authority would carry significant hazards and could compromise the authority to an unacceptable degree in the context of performing its work and achieving its objectives. Therefore, the Department does not advise the Competition Authority on how it should go about its work. To do so would, in essence, contravene the Act.

I understand from where Deputy is coming. We all have good relations with the Irish League of Credit Unions. We are studying the detail of the case and in that regard we may make observations known to the Competition Authority, but it is equally important to point out there is an impression going around that is all the authority has been doing. It is worth pointing out that criminal prosecutions for breach of the 2002 Act were brought by the DPP based on extensive investigative work carried out by the authority. In 2006, for example, 15 criminal convictions were secured on behalf of the authority while to date in 2007 three further convictions have been obtained, with another three cases before the court. There are no legal cost implications for the authority in the case of these criminal prosecutions, which are included in the DPP's budget. These ground breaking convictions are the first criminal convictions by jury in respect of breach of competition law in Europe and the other jurisdictions are looking to Ireland and the authority's criminal enforcement record as a result.

Over the past year or so Deputy Hogan was strong on this issue of whether there had been any criminal convictions. The evidence is clear that there have been. I note he seems to have a consistently negative perspective on the Competition Authority but unless he is suggesting we change the statute and remove the authority's independence, I will not interfere or breach the law as it stands.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I would not expect the Minister to say anything other than that I have a negative view of the Competition Authority but that is not the case. I have a positive view of the authority. The Minister stated he does not interfere in the role of the Competition Authority, in other words, he does not give it any leadership, but he also stated he would be happy to make observations about particular matters to the Competition Authority. I ask him to make an observation and take into account the observation I now make. The total budget and resources of the Competition Authority is €5 million. There will be €2 million to €2.5 million used up on this case in costs. What will the Minister do, in terms of his observations to the Competition Authority, to ensure its work programme is completed and that that is done independently, as I agree it should be independent?

Micheál Martin (Cork South Central, Fianna Fail)
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Does Deputy Hogan accept that?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I always did and I do not know where the Minister got the other impression. I am trying to ensure the Minister has sufficient resources given to the Competition Authority to do its job and not to be taking on the little people like the Irish League of Credit Unions — there are plenty of others. Will the Minister be making an observation on the judicious use of Competition Authority resources in the future?

Micheál Martin (Cork South Central, Fianna Fail)
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Deputy Hogan needs to be clear on where he stands. He cannot ask if the Minister will advise the authority and give leadership to it, and almost in the same sentence suggest the Minister should not become involved and should remain independent.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister stated he would make observations.

Micheál Martin (Cork South Central, Fianna Fail)
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Deputy Hogan has criticised the fact the authority has taken on the Irish League of Credit Unions. I stated we are studying the Supreme Court judgment. It is only by its careful consideration that one could make observations in terms of future actions.

The authority is independent. We should equally point out that many settlements are made before the proceedings ever get to court, when companies or various interested parties agree to settle or to remedy their anti-competitive behaviour. There is no great desire to force cases through to the High Court and to the Supreme Court because that clearly involves risks, of which no doubt the Competition Authority is as much aware as anybody else, but given the nature of the independent authority we established to endeavour to create a greater competitive environment in Ireland, it is inevitable there will be risks associated with pursuing some of these issues through the courts. People in other sectors need to know the authority is prepared to go that route even if it must make judgments along the way.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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So there are enough resources.