Joe O'Toole (Independent)

The Bill proposes ComReg can put a price cap on certain services being supplied. This is an interference with the market and we heard a lot earlier from the Minister of State, Deputy Cuffe, about its importance. I have no problem with interfering with the market. That is what regulation is supposed to be about, as long as it is done on a qualitative basis. We know the problem created by putting such a similar restriction on the ESB several years ago when it was not allowed to charge market prices and lower its prices. While it seemed like a good idea in 2001, it was a very bad idea two years ago.

The legislation makes a solid argument for allowing ComReg to put a cap on certain prices. However, such a cap should only be maintained for a short time. Maintaining a price cap for five years would be unfair on any service provider. Surely the market and consumers' interests should have an input in this regaqrd. The price should be allowed to float in these cases.

While we argue about the need for competitiveness and allowing the private sector, as the Minister of State said, to become involved in this market, proposing a price cap seems to be the obverse of these arguments. It also makes the position intractable and irrecoverable. I do not believe, therefore, that there is a substantial argument for allowing this to happen. Will the Minister put the matter in context in terms of quality of service, how it interfaces with the marketplace and ensures fairness? This mistake was made with the energy regulation legislation and the ESB. We should be learning from all these experiences. If there is a need for a price cap, one or two things should be done. Either reduce the five-year period to three or some other figure, or else get rid of the word "shall". That is another way to take cognisance of changing circumstances over the period, so it could be revisited one way or another. The provision that it "shall continue for five years" is very harsh indeed. I ask the Minister to re-examine this matter and give it his best shot in responding to it.