Liz McManus (Wicklow, Labour)
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Question 2: To ask the Minister for Communications, Energy and Natural Resources the protection there is for consumers from scams in regard to premium rate services, particularly subscription services targeting children in view of his failure to publish legislation and of the failure of Regtel to act effectively; when the Communications Regulation (Amendment) Bill 2009 will be published; the way it will ensure proper regulation; and if he will make a statement on the matter. [24318/09]

Eamon Ryan (Dublin South, Green Party)
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In accordance with its current remit, Regtel is independent in its functions and oversight is exercised by the Regtel board. At present, premium rate services are regulated in accordance with contractual arrangements between Regtel and the service providers and by means of a code of practice to which all service providers are obliged to adhere. In addition, Regtel provides advice to consumers and recently launched a major education and awareness campaign, the STOP campaign, to alert consumers to the negative aspects of subscription services and how to unsubscribe from these services in an easy manner. Information on Regtel's code of practice, including the sanctions available for non-compliance and their awareness and advice campaigns, can be viewed on their website at www.regtel.ie .

According to Regtel, the majority of premium rate service providers operate within its code of practice. There are, however, a small number of non-compliant providers in the sector whose activities have brought the sector into disrepute and who have undermined public confidence in the regulation of the sector. It is the activities of these operators that must be the target of stricter regulation and enforcement.

I have prepared a draft Bill for the purpose of transferring the regulation of premium rate services to ComReg and to provide the necessary enforcement measures for the more effective regulation of the sector in the interest of consumer protection. The draft Bill has been recently circulated to all Departments for their observations. I expect to submit the draft Bill to Government for approval, to publish it shortly and to have it enacted as soon as possible thereafter.

The actions I have taken have been aimed at ensuring a robust and timely response to those service providers who continue to flout the rules and mislead consumers. The transfer of the regulatory function to the ComReg and the strengthening of the regulatory regime has been the subject of extensive consultation between my Department, ComReg and Regtel and with the industry. Many issues had to be considered and teased out to ensure the necessary tools and resources are available to ComReg to effectively regulate this sector and to protect users of these services. I believe the Bill, which is due to be published in this session, will achieve that objective.

Liz McManus (Wicklow, Labour)
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I thank the Minister for his reply. He must be aware this issue is a problem. It may involve only a small number of operators who are carrying out what are essentially scams but thousands of people are affected by them. Will the Minister accept that he needs to ensure the proposed Bill will be of the best standard in terms of regulation if it is to work, given that Regtel has been operating for some time and yet problems still persist.

Will the Minister publish the draft Bill before it is introduced in the House? I urge him to ensure there is some form of public consultation on this issue. Will he advise what protection there is in the Bill for the consumer? I understand there is provision in the Bill for the levying of fines on operators but that the current procedure where consumers are refunded money they are owed is not included. I urge the Minister to note that this is about consumers primarily and that many people have suffered considerable losses, some small amounts and others large amounts. Is he aware, for example, that the last annual report of Regtel indicated a payment of €179,000 was made to consumers in regard to an operator? Can he guarantee that in the Bill he will provide for a facility to refund customers who have a genuine complaint, as the people concerned are essentially being ripped off by unscrupulous operators?

Eamon Ryan (Dublin South, Green Party)
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I agree with the Deputy that this is a serious issue. What drew my attention to it and to amending the law on this issue was the volume of complaints received. In 2007 to 2008 some 21,000 people sought to unsubscribe to services and more than 6,000 direct consumer complaints were made. If one receives that level of public complaint, there is a serious problem concerning an issue. Part of the problem is that there is not sufficient legal protection or legal enforcement and that is what will be addressed in the Bill. It is on the A list of the Government's legislative programme and is to be published this session. I still expect we will be able to do that subject to Cabinet approval. That allows us the summer for any other bodies to consider it before it will be introduced in the Dáil to be enacted.

The Deputy is right in what she said. I will not go into the details of the Bill before it is published. We are seeking to ensure there is provision in the Bill for the imposition of significant fines, real powers and, crucially, codes of conduct for operators to ensure the refunds the Deputy mentioned are effectively delivered. This is important legislation covering an issue that annoys many people. Such practices involves a financial loss for them that is often daylight robbery. We have to stop that.

Liz McManus (Wicklow, Labour)
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I want clarification on this matter. The Minister mentioned fines which would be levied on the operator. What I am talking about is refunding the consumer for his or her loss. Is the Minister saying there is provision in the Bill specifically for consumers to receive refunds? It is not satisfactory to expect people to go to court to achieve their rights. Refunds are currently being paid back to consumer by way of Regtel. Is that specific provision included in the Bill? If it is not, and if the Minister does not want to publish the Bill before it has done the rounds, will he ensure that provision is included in the Bill?

Eamon Ryan (Dublin South, Green Party)
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A recent High Court challenge by Realm, a company with a non-compliant reputation, to a Regtel adjudication against the company resulted in an out-of-court settlement in which the company agreed to comply with Regtel's code of practice to refund consumers and to reimburse Regtel for expenses. It is our intention within the Bill to have the facility for customers to be refunded, but we need to get the Bill approved by Cabinet first before we go into the detail.

Liz McManus (Wicklow, Labour)
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Is that provision in the Bill or is it not?

Eamon Ryan (Dublin South, Green Party)
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I cannot discuss the Bill until it is through Cabinet, after which we can publish it in the House and then go through its full details.