Paul Coghlan (Fine Gael)

I welcome the Tánaiste. We are aware of her keen interest in this area, particularly in regard to insurance. I look forward to the ongoing work of the Competition Authority as outlined by Senator Leyden.

I welcome the motion and the opportunity to speak on the various matters highlighted in the Competition Authority's report. Of its nature, it is something of a preliminary report which is highly critical of the medical and legal professions. As we are aware, the authority is investigating eight professions in all.

It was rather startling to read that the cost of legal and medical services could be reduced by up to 30% if anti-competitive practices in these professions were ended. At least that is the view of Indecon, the economic consultants commissioned by the Competition Authority to prepare this report.

This major report will form part of a three year process of assessing anti-competitive practices in eight professions. The process is due to end next year by which time the authority hopes to have issued further reports and recommendations on each of the professions concerned.

Mr. Alan Gray, managing director of Indecon, pointed out that in other jurisdictions the removal of anti-competitive practices such as demarcation had led to falls in prices of 10% to 20%. However, when a number of anti-competitive practices were removed regarding a single profession, decreases in prices of 20% to 30% resulted. He cited solicitors, barristers and doctors as professions where such large decreases in costs were possible.

The other professions included in the Competition Authority's ongoing inquiry are architects, engineers, vets, opticians and dentists. So far the studies have found that there is normal competition between architects and engineers. However, with the other professions the extent of the restrictions on competition is very significant. The extent of the restrictions in the legal and medical professions is, according to Mr. Gray, "really very remarkable and has the effect of damaging consumer interests." He said the issues identified in the report were ones which Indecon believed should be addressed as a priority by the Competition Authority and Government.