Michael D Higgins (Galway West, Labour)
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Question 43: To ask the Minister for Enterprise; Trade and Innovation the position regarding the draft Consumer Rights Directive; if he has satisfied himself that the existing rights consumers here, such as the right to reject, will be retained; and if he will make a statement on the matter. [24343/10]

Billy Kelleher (Cork North Central, Fianna Fail)
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The proposal for a consumer rights directive was published in October 2008. The directive has been drafted on a full harmonisation basis. If that is retained, it will preclude member states from going beyond its protection in national legislation. Although some provisions of the proposed directive would strengthen consumer rights in Ireland, others would have a less positive effect. Concerns about the proposal's impact on Irish consumer rights centre mainly on its provisions on consumer remedies for faulty goods. As the Deputy's question suggests, it would have particular implications for what is known as the right to reject - the right to return faulty goods, obtain a refund of the price and terminate the contract. A fully harmonised provision along the lines proposed in the draft directive would, if adopted, mean that the right to reject would be a remedy of second rather than first resort for faulty goods.

I assure the Deputy that my officials have expressed reservations about relevant aspects of the proposed directive in clear and forthright terms. Such concerns were restated at political level at meetings of the Competitiveness Council in December 2009 and May 2010. I raised our concerns directly with Vice-President Reding, who has responsibility for this proposal, when I met her at the most recent meeting of the Competitiveness Council. It is important to recognise that discussions on the proposed directive have a considerable way to go at official and ministerial levels and in the European Parliament. The European Parliament committee on the internal market and consumer protection is considering the proposal which is expected to have a first reading in the Parliament before the end of the year. I remind the House that this is a draft proposal, as opposed to an EU directive.

Willie Penrose (Longford-Westmeath, Labour)
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I would object to the implementation of such an EU directive on a full harmonisation basis. It would impinge negatively on existing consumer rights. I accept that it is proposed to extend the withdrawal or cooling-off period for distance or off-premises contracts from seven to 14 days. That would be welcome. The proposal that risk would pass upon the delivery of a consumer sales contract would also enhance the rights of the consumer. We have to ensure it is balanced, however. As far as I can tell, the unfair contract terms set out in the directive are similar to our own. As the Minister of State suggested, the provisions of the consumer rights directive with regard to consumer remedies for faulty goods would impinge negatively on the right to reject or return faulty goods, get a refund and terminate the contract. That would be serious.

The sales law review group was established in November 2008. Has the Minister of State made a submission to the group to ensure important rights are retained? Has he made a recommendation to the observation group on the proposal to reduce the liability period from six years to two years? That would be an absolute disaster. What is the feeling at EU level? Are many other member states that have similar legislative protection in place for consumers showing sympathy with our position? Such protection will be eroded if this directive is implemented in full.

Billy Kelleher (Cork North Central, Fianna Fail)
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We have raised our concerns at official level in the strongest and most forthright terms. We relayed them at meetings of the Competitiveness Council in December 2009 and May 2010. I have spoken to Vice-President Reding about our concerns with regard to consumer protection. I emphasise that this is just a proposal - a draft directive as opposed to a directive that would have to be implemented by national parliaments across the EU. We are conscious of the need to ensure there is strong protection for consumers. That is something we are advocating at all levels. Mr. Andreas Schwab, who is the rapporteur of the European Parliament committee on the internal market and consumer protection is conscious that the proposal is not in line with the observations of some member states. It would dilute consumer rights, such as the right to return being the first recourse, as opposed to a secondary recourse. We will raise these issues again in due course.

Willie Penrose (Longford-Westmeath, Labour)
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I thank the Minister of State.

Arthur Morgan (Louth, Sinn Fein)
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This is a very good question.

Billy Kelleher (Cork North Central, Fianna Fail)
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It was a very good answer as well.

Willie Penrose (Longford-Westmeath, Labour)
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One will not get a good answer unless one asks a good question.

Arthur Morgan (Louth, Sinn Fein)
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I would like to ask whether a defective government can give grounds for rejection by consumers. Specifically, when are the people of this State likely to get an opportunity to reject this Government?

Billy Kelleher (Cork North Central, Fianna Fail)
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I missed the Deputy's question.

Brendan Howlin (Wexford, Labour)
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I think it was a rhetorical question

Billy Kelleher (Cork North Central, Fianna Fail)
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Was it not relevant to my answers?

Arthur Morgan (Louth, Sinn Fein)
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I would love to hear an answer.

Brendan Howlin (Wexford, Labour)
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If the Minister of State wishes to respond, the Chair will not prevent him from doing so. However, I do not think the matter raised is appropriate to his line responsibilities.

Willie Penrose (Longford-Westmeath, Labour)
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Has any work been done to examine the legislative protection in the Sale of Goods Act 1893, as amended by the Sale of Goods and Supply of Services Act 1980, in the context of the new directive? Did Mr. Bob Clark and his colleagues on the sales law review group examine anything of that nature? We have heard much today about charts - has a chart been compiled to compare and contrast what is available under the 1980 Act with what is now proposed? Perhaps we could be furnished with such a document in due course.

Billy Kelleher (Cork North Central, Fianna Fail)
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The common law in the Sale of Goods Act 1893 was amended in the Sale of Goods and Supply of Services Act 1980.

Willie Penrose (Longford-Westmeath, Labour)
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The 1980 Act is the real one.

Billy Kelleher (Cork North Central, Fianna Fail)
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Yes. Some of the provisions of the 1893 Act are still used.

Willie Penrose (Longford-Westmeath, Labour)
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They are.

Billy Kelleher (Cork North Central, Fianna Fail)
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Does the Deputy suggest that a comparison should be made between the Irish legislation and the draft EU directive?

Willie Penrose (Longford-Westmeath, Labour)
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Yes.

Billy Kelleher (Cork North Central, Fianna Fail)
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That observation has been made. We believe the directive, as presently proposed, would undermine the statutory provisions we have made in the interests of consumers in the Sale of Goods Acts and in our broader consumer protection measures.

Willie Penrose (Longford-Westmeath, Labour)
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Can the Minister of State bring a copy of the 1980 Act to Brussels and everywhere else to show them how good our law in this area is?

Billy Kelleher (Cork North Central, Fianna Fail)
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I certainly can. I could even bring the 1893 Act with me, just to be sure. Our officials have raised these issues regularly. We do not want our solid consumer protection laws to be undermined by a proposal like this.

Willie Penrose (Longford-Westmeath, Labour)
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Very well.