Micheál Martin (Cork South Central, Fianna Fail)

Many businesses throughout the country are keen to ensure that they are not disproportionately hammered in terms of either the commercial rate or other charges, which can be seen as a soft options by members of local authorities. As Minister for Enterprise, Trade and Employment, I have travelled the country to meet various interested parties. I am aware that there are strong views. If Senators from every political party are sincere about what has been said in the House this evening, they are obliged to get the message across at local level, as I have been doing.

The consumer strategy group was appointed by the Tánaiste in March 2004 to advise and make recommendations for the development of a national consumer policy strategy. It is important that we should have an in-depth and informed perspective on this matter. The catalyst for the establishment of the group was the increase in concern about the core issue, which is the position of the consumer in the decision-making process in this country. The group considered whether Irish consumers are getting a fair deal. The group's report, which was published on 18 May last, contains over 30 recommendations relating to a variety of Departments and State agencies. It covers practically every facet of consumer activity. The motion rightly notes the comprehensive nature of the group's report. I wish to express my gratitude to the members of the group for their work. In particular, I thank its chairperson, Ms Ann Fitzgerald, for her enormous contribution.

As I have said, the question of whether Irish consumers are getting a fair deal has been the subject of much recent debate. Those who have read the report of the consumer strategy group are aware that on the basis of its research and analysis, the group has found that Irish consumers are not getting a fair deal in many areas. The analysis in the group's report of the price of a range of consumer goods and services found Ireland to be among the most expensive countries in the euro zone, if not the most expensive. It is a very persuasive and compelling analysis. Senators on the other side who complain about stealth charges contend that the report is flawed because it suggests that Irish consumers are being charged too much. There is no coherent or clear view emerging from the Opposition. I accept that the group's survey of prices in various European countries is compelling. We cannot dismiss this issue.

When I listened to "Morning Ireland" this morning, I heard visitors to this country talking about their perceptions of Ireland. Some them said that restaurants and pubs are quite expensive. A lady from Munich said she though that meals in Ireland were more expensive than those in Munich. She said she thought bed and breakfasts were excellent value for money, however, so it was not all one-way traffic. Value for money is offered in those areas in which competition is found. The communications sector is far more competitive than the energy sector, for example. We need to have a certain sense of balance as we approach this issue. In this regard it was interesting to listen to the anecdotal and random survey that was conducted by an RTE reporter this morning. Four or five holidaymakers in the west were asked about the cost of eating out and consuming alcohol. The principal factor in this is that current consumer policy is seriously deficient and does not adequately meet the needs of modern consumers. It analyses current policy and finds that one of the main reasons for the deficit in policy stems from the group's belief that the consumer agenda and consumer protection is not embedded in our economic model. The report stresses the need for the balance of power to be shifted towards consumers and the need to awaken consumers to the potential economic and social power they can wield. People should not pay €11.50 to go into an establishment to have a pint. We have a choice here. If people began to exercise that choice, businesses might operate differently in regard to charges and so on. The balance of power must be shifted, and consumers have power. This power must be structured so that it can be wielded effectively. The Bi-Annual Average Price Analysis, published last month by the CSO, demonstrated the value that can be obtained by informed consumers on different goods and services when they use that power.

Having analysed current policy, the group, as required by its terms of reference, has suggested a way forward. I welcome the fact that in mapping out its vision of the future, the group has eschewed the calls of some commentators for the reintroduction of price controls. I concur fully with the group that freely functioning competitive markets are more effective at setting fair prices than any form of price control. A look back at the history of price controls clearly demonstrates that they have not been an effective weapon for keeping prices down as experience has shown that the maximum price often tended to become the minimum price. I, therefore, welcome the fact that in framing its report the group concentrated on recommendations and initiatives to empower and strengthen the voice of consumers. The group rightly identifies the biggest challenge in this area as ensuring that consumers are well-informed, empowered and confident so that they can act for themselves, that they can and will insist on good value for money, that they will expect to be treated fairly and that they will know where to go for support.

The group has made a number of specific recommendations as to how this challenge should be met. The core recommendation is that a new national consumer agency be established. The group has outlined in detail in its report its vision as to how the new agency should operate. The group envisages that the NCA will incorporate the existing functions of the Office of the Director of Consumer Affairs but it will also have an expanded role and additional statutory functions. The group, in recommending the establishment of a new agency, is adamant that in order to be able to provide the services consumers need, the NCA must undertake functions of consumer advocacy, research, information, enforcement, education and awareness.

In the area of advocacy, the group recommends that the NCA must have a statutory function to act as a forceful advocate for the consumer in public debate and in the preparation of legislation and also that the agency be empowered to advocate the consumer's case with regulated industries and individual regulators. In the matter of research, the group is of the view that the credibility of any advocacy, information, awareness campaigns on which the NCA might embark must be grounded in well-founded research and that without the ability to carry out such research the NCA could not hope to challenge vested interests who invariably spend considerable amounts of money in this area. On the question of information, the group is strongly of the view that consumers only benefit from competition in the marketplace when they are informed and that the NCA has a pivotal role in providing information to consumers.

In regard to enforcement, the CSG found that enforcement of consumer protection rights and ready access to redress for consumers with complaints are most important in gaining and maintaining the confidence of consumers. The CSG recommended that the NCA builds upon the enforcement work currently being carried out by the ODCA. Another important support which the CSG recommends the new agency should provide to consumers is in the area of education and awareness. The group is of the view that mandating the agency to educate and raise consumer awareness will develop greater confidence among consumers to help them feel secure in the choices they make. The group made a very strong case that any new agency, to be fully effective as a robust champion of the consumer, must be statutorily mandated to undertake the specific functions detailed above. I support fully the views of the group on this matter.

Senators will be aware that the Government has agreed in principle to the establishment of a new national consumer agency. I appreciate the support for that decision in the motion. My Department has already commenced the necessary preparatory and organisational work to ensure that the NCA is established as soon as possible — this is one report that will not be left on a shelf — and that the recommendations of the group as regards the structure, scope and functions of the new agency, including those to which I have already referred, will be taken fully into account in that work.

Notwithstanding my determination to ensure that the new agency is up and running as soon as practicable, I am conscious that this may take some time. I am anxious that the consumer momentum, which has built up through the valuable work of the group and the publication of its report, should not be dissipated. For that reason, I recently appointed a board for the new agency to act in an interim capacity until such time as the NCA is established on a statutory basis. I am pleased the chairperson of the consumer strategy group, Ms Ann Fitzgerald, has agreed to act as the chairperson to the interim board and also that the board will have the benefit of the valuable experience of the current Director of Consumer Affairs, Ms Carmel Foley.

Mention has been made of the Consumers Association of Ireland. I deliberately set out not to make the agency a representative-type body, as in picking a nominee from different organisations. I want to get a cross-section of disciplines, from ordinary people on the street who would be representative of people who go shopping every day, to columnists and people who have a particular interest in consumer affairs. I believe we have struck the right balance. We will continue to support the Consumers Association of Ireland in its work through funding. We will work with the association to see what more we can do. Sometimes some agencies do not lend themselves to a representative nominee-type approach. This may not always result in the kind of cross-discipline model or composition one would like. This is the reason I took a particular line. While one could argue that the Consumers Association of Ireland is not formally represented, the personnel include people who have also been members of the association. One member is on the board because of his personal characteristics, abilities and interests as opposed to having been a member of the association.

I have requested the interim board to immediately begin planning for the final structure and organisation of the fully-fledged national consumer agency. I also hope the interim board will start to develop some initiatives in the area of consumer advocacy, research, awareness, etc., as envisaged by the CSG and as urged in the motion. I am confident that the establishment of an interim board and the work undertaken by that board will be an important and tangible demonstration to consumers that real change is underway and that the focus will firmly be on the needs of consumers. I am also certain that the interim board, through its work, will enable the national consumer agency to hit the ground running once it is established in law.

In conjunction with setting up the interim board and preparing the legislative and other work to establish the NCA, consumer policy continues to develop. Many developments and protections in this area emanate at European level. It is not surprising given the commitment in the Amsterdam treaty that consumer protection requirements be taken fully into account in all future Community policies and activities. An example of a recent EU consumer protection policy development is the adoption last month by the EU Council of Ministers of the directive on unfair commercial practices. This important directive, which will establish a legal framework for the regulation of unfair business to consumer practices across the European Union, is an illustration of the concrete benefits which membership of the EU is bringing to Irish consumers.

In addition to developments in European consumer law, it is vital that domestic legislation in the area of consumer protection is attuned to the needs of modem consumers as advocated by the group in its report. In this regard, my Department is currently engaged in a comprehensive review of all existing consumer protection legislation. As the extant code of consumer protection law is spread over a considerable number of different statutes, some of which date from over a century ago, it is vital that the code of law be reviewed and codified to ensure that consumers fully understand their rights and that traders understand the obligations placed on them by those rights. I intend to ensure that this review is completed as quickly as possible as recommended by the CSG in its report.

In addition to the issues I have already mentioned, the CSG report deals with a whole range of other issues-sectors which affect the quality of life for Irish consumers. In total, the report contains more than 30 different recommendations involving a variety of different Departments and Government agencies whose activities directly impact on the interests of consumers. The extent to which consumer interests are entwined with practically every facet of economic, political and social life can only be appreciated by reading the full report of the CSG. It is not surprising, therefore, that the report's findings and recommendations cover such diverse area and sectors as health, planning, utilities, transport, food and drink, etc. Given the scope and breadth of the CSG's recommendations, it is clear they will require a co-ordinated response from Government. To that end, my Department has established a high level interdepartmental committee to examine and advance the various recommendations in the CSG report. I have asked the committee, which has already commenced its deliberations, to report back with a detailed implementation plan within three months.

While the establishment of a new national consumer agency is one of the core recommendations contained in the report, another significant recommendation, which has been the subject of much recent comment, relates to the future of the groceries order. It is no secret that there have been different and opposing views expressed by many parties and interests as to the future of the order. Undoubtedly, the group has come to a definitive view on the matter by calling for the order to be revoked in its entirety. I appreciate that notwithstanding its conclusions on this matter, the CSG reflects in its report that arguments can be made for retaining as well as revoking the order. It is my view that the arguments for and against the order are many and that given the importance of the matter they require serious and careful consideration. For that reason, I launched a public consultation process last month on the future of the order. I am aware that a number of parties have questioned the need for a consultation process on this matter and have expressed concerns that engaging in such a process could delay any decision on the future of the order. This is not the case. Senators should be aware that the Attorney General has advised that any amendment to the order, even its abolition, would require primary legislation. In any event, consultation is appropriate.

I have instructed my Department to conclude the consultation process on the order by the end of next month. Following the process I intend to bring proposals to Government on the future of the groceries order. I am glad the consultation process is supported in this evening's motion and I am sure it will involve all parties, particularly groups like consumers whose voice has not yet been heard in this debate. In these circumstances, the consultation process will greatly assist the decision-making process on this issue.

I encourage all those who engage in the consultation process to give some lateral thought to it and I urge that they not confine themselves to merely considering the retention or revocation or the order. They should also give some thought to amending or replacing the order and to what such an amendment or replacement might be.

I am glad that this evening's motion has provided the opportunity for me to outline to the House the policy initiatives being brought forward by the Government in the area of consumer protection. I welcome the support of the initiatives as expressed in this evening's motion. The work of the consumer strategy group is undoubtedly of critical importance and its report will be a reference for future development of consumer protection policy. The report presents the opportunity to build a new environment of consumer protection and assist consumers in empowering themselves so that they can perform their daily activities with the confidence that they will receive a fair deal. We will seize the opportunity presented by the consumer strategy group's report to shift the balance of power towards consumers.

A strong consumer ethos will benefit not only consumers of goods and services but will also benefit providers of such goods and services. A direct correlation between consumer power and thriving markets and businesses undoubtedly exists. It is therefore important to acknowledge that the group's work will not only benefit every consumer but valuably contribute to the continued development and success of our economy and society. I thank the Senators for facilitating the opportunity for this evening's debate.