Jan O'Sullivan (Limerick East, Labour)
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Question 6: To ask the Minister for Communications, Energy and Natural Resources if he will bring forward measures to give the energy regulator, CER, co-competition powers with the Competition Authority over the oil and liquid fuels market; if he will direct CER to investigate and report on pricing policies in the oil and liquid fuels market; and if he will make a statement on the matter. [23055/07]

Eamon Ryan (Dublin South, Green Party)
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The Irish oil industry is fully privatised, liberalised and deregulated. There is free entry into the market. The Commission for Energy Regulation, CER, is the independent body statutorily responsible for overseeing and regulating Ireland's electricity and gas sectors. The CER has no role in regard to the oil industry. The Competition Authority is a statutory independent body with a specific role in the enforcement of competition law. The National Consumer Agency has specific responsibilities for protecting the rights of consumers. Its function is to ensure that competition works optimally for the benefit of consumers throughout the country.

There are no proposals at present to bring forward measures to give the CER a role in regard to the Irish oil industry, given the nature of the market and the roles and responsibilities of the Competition Authority and the National Consumer Agency.

Eamon Ryan (Dublin South, Green Party)
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If there is evidence, even a suspicion, that a cartel is operating, the Competition Authority and the National Consumer Agency, a statutory body established last May to defend consumer rights, can investigate and bring to book anybody in the industry who is engaging in cartel practices. In Dublin, where property prices are high, the availability and expense of sites are issues. However, it is not possible for the Government to intervene and regulate a free market by trying to set prices or, indeed, set particular filling station locations and micromanage it at that level.

The Department and the CER have a general role in the energy policy area to ensure general security of supply. We are preparing a report at present examining energy security and long-term security implications. I have also, through the amendments that were made possible in the changes to the National Oil Reserves Agency Act, recently raised the security of supply levy to ensure we will have 90 days storage available in the event of any disruption. The State is engaged at that level. With regard to issues involving incorrect practices that exploit the consumer, the Competition Authority and the National Consumer Agency are sufficiently strong to address them.

Eamon Ryan (Dublin South, Green Party)
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I understand from people in the sector that the margins in the fuel delivery business are incredibly tight, probably because it is an open and competitive market. The Deputy sees a suspicion of price fixing where prices move up and down in tandem. Perhaps she is right, and her deep suspicions or widespread concerns are based on fact. Alternatively, however, perhaps the fluctuations in the oil market price cause prices in the petrol stations here to rise and fall accordingly. If there is evidence to support the deep suspicions and widespread concerns, there are mechanisms in place for those concerns to be presented and the Competition Authority or other bodies can examine them. If the Deputy is saying that I should respond to deep suspicions when I do not have the statutory authority to do so but other Departments do, that does not appear to be a logical approach.

Simon Coveney (Cork South Central, Fine Gael)
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When similar questions were raised about the mobile phone market, the regulator, ComReg, responded with a website which outlined to consumers in clear terms the difference in prices and options on offer from various operators. Would it be forward thinking to take a lead on this issue and speak with the energy regulator about similarly comparing diesel, petrol and biofuel prices throughout the country? As someone who drives between Cork and Dublin on a regular basis, I can state the costs vary widely. While the Minister states his understanding is that the margins on petrol are tight, the reality is that the price for people at the pump varies significantly from petrol station to petrol station. It may remain the same within regions and this is the potential cartel activity mentioned by Deputy McManus. Does the Minister agree many problems would be solved if the regulator took a lead on this issue and published prices on a website so people could make comparisons?

Eamon Ryan (Dublin South, Green Party)
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If evidence is presented to show regional or other competition issues which must be addressed and investigated I will happily pursue them. To answer Deputy Coveney, the difference between the mobile phone market and the petrol station market is that one is regulated and has a licensing system and the other is a free and open market which one can enter and exit easily. Deputy Coveney's point that price differences between various petrol stations are perfectly apparent is valid. This allows the consumer, including the Deputy as he drives to and from Cork, to decide where to stop and purchase petrol.

Simon Coveney (Cork South Central, Fine Gael)
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The problem is that not everyone drives from Cork to Dublin.

Eamon Ryan (Dublin South, Green Party)
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If a station is cheaper and the sign outside the door states clearly the rate per litre, one is free to purchase the petrol. It is slightly different with mobile phone operators, who could improve transparency on real prices because one is contractually obliged to use the phone unless one changes operator. It is different from stopping one's car and choosing one petrol station over another.