Seanad debates

Wednesday, 25 April 2012

Competition (Amendment) Bill 2011: Committee Stage

 

12:00 pm

Photo of Trevor Ó ClochartaighTrevor Ó Clochartaigh (Sinn Fein)

Cuirim céad fáilte roimh an Aire Stáit. Is breá an rud go bhfuil Gaeilge ag an duine sa chathaoir sin agus gur féidir linn cúpla focal Gaeilge a úsáid agus muid ag plé na díospóireachta seo. Go ginearálta, tá Sinn Féin i bhfábhar an Bhille seo, mar a bhíomar ar na Céimeanna roimhe seo. An t-aon locht atá againn ar an mBille ná nach dtéann sé sách fada agus nach dtógann sé ar bord na tuairimí atá luaite ag an Údarás Iomaíochta, nó an Competition Authority. Maidir leis na leasuithe atá curtha chun cinn ag mo chomhghleacaí, an Seanadóir White, táimid ar son dtabhairt isteach fíneálacha sibhialta sa reachtaíocht seo.

Sinn Féin supports the introduction of civil fines in the legislation. We do not accept the argument put forward that this would be unconstitutional. The major flaw in the Bill, which critically undermines it, is the lack of provision for civil fines as requested by the Competition Authority. The Minister of State will be aware of that. The Competition Authority sought the provision of civil fines to deal with the abuses of the so-called hard core infringement. Central to that is the abuse of the dominant market share, including the refusal to supply, predatory pricing and exclusivity agreements. We remain concerned that the absence of a provision for civil fines will impact on the ability to deal with those types of abuses. The development and implementation of a civil fines section would be a mechanism to deal with the abuse of a dominant position. It would strengthen the provisions of the Bill and further safeguard the consumer and local business. The role of civil fines is to punish corrupt practices where the burden of proof is too onerous to reach. They are a medium strength weapon that should be utilised. I hope the Minister of State will revisit this suggestion and amend the Bill to provide for civil fines to tackle corrupt practices alongside the more stringent provisions he has outlined.

We have been in discussion with a number of groups on the issue, some of whose members are in the Gallery and whom I welcome. The Competition Authority would state only two of a number of findings it has made over the years have been substantial in dealing in any way with some of the anti-competitive practices in the State. Part of the problem is that we do not have a civil fines regime. The burden of proof is onerous when it comes to a criminal prosecution whereas the burden of proof in a civil case is not as onerous. That must be taken on board because as outlined in this Chamber on a number of occasions and according to reports from the Competition Authority, practices in a number of industries in this State, especially in the cement industry although we have seen it in the fuel industry and elsewhere, are resulting in the squeezing out of smaller businesses. We have seen golden circles in practice, price fixing, predatory pricing and the use of so-called hello money. Smaller players in the marketplace are not getting fair play. Anything this State can do to tackle that must be done.

It is very difficult for those smaller businesses to be competitive when the wider economic situation is taken into consideration. For example, a huge number of shops on the high street in Clifden, County Galway, have closed as a result of competition issues. One could also link it to the current economic situation. For example, when people have less money in their pockets to do their weekly shopping, they are more likely to buy their groceries in the bigger multiple shops, but those large multiples are squeezing out the smaller local grocers. We are all aware of that from the experience in our own constituencies.

The reality is that if people had a little more money in their pockets, they would be more likely to spend more in their local shops and the local traders would be more likely to get fair play if the broader aspects of the economy were dealt with. Smaller businesses are receiving a double whammy of competition from large multinational players, some of which we fear are engaging in these anti-competitive practices, and the criminal sanctions in place not tackling the issue. Civil fines would make it easier for those who are being penalised in the system to take a case and might act as a deterrent to those engaging in these activities. We believe the proposal put forward is modest and we ask the Minister of State to reconsider the situation ar na chostais sibhialta seo nó na píonóis sibhialta seo.

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