Seanad debates

Wednesday, 25 April 2012

Competition (Amendment) Bill 2011: Committee Stage

 

1:00 pm

Photo of Sean BarrettSean Barrett (Independent)

What the Minister of State has described is the theory involved. However, if one considers the Public Transport Regulation Act 2009, the Department said nothing. This is recorded in the screening regulatory impact analysis of the legislation which indicates that the Department either said nothing or broadly approved. That legislation was highly anti-competitive in nature, particularly as it was sponsored by a Department which was supposed to be promoting entrepreneurship. Where Ministers and Departments infringe the principles of competition policy, the Competition Authority should indicate this fact. I do not see a case for granting exemptions in this regard.

We are concerned that two individuals might decide to sell ice cream on Bull Island or in Blackrock in the Minister of State's constituency on the same Sunday afternoon and at the same price. As stated on Second Stage, however, most collusion occurs between Departments and around the Cabinet table. In recent times Paul Gorecki produced a most interesting paper in which he pointed out that the previous Government was moving against competition, engaging in increasing levels of ministerial interference and rigging markets. I will provide a long list in this regard when we come to discuss the amendments tabled in my name.

I do not believe the protection to which the Minister of State referred is adequate. I do not care who - whether it be Ministers or civil servants - is restricting competition in the economy. The Competition Authority should promote competition. I do not know whether we should transfer everything to the Department of Justice and Equality and, as is the case with the American system, make those who engage in the collusion to which I refer subject to penalties. The current system is too cosy. Some people have what is called "regulatory capture", which ought to be a matter of concern. The Competition Authority must represent every citizen who is in favour of competition against anybody - regardless of who he or she may be - who is preventing competition. Given that in many cases Departments have a record of engaging in restrictive practices and preventing competition, they should not be exempt.

In a recent case in the United Kingdom both the Office of Fair Trading and the Competition Commission judged that the Civil Aviation Authority in Britain was a little too chummy with the British Airports Authority. The solution arrived at was to force the latter to divest itself of its airports. It sold Gatwick and in the past week Edinburgh airports. The British competition authority did not say these are civil servants getting together in the national interest so it could not possibly investigate them. In fact, they may be more dangerous than two people rigging the price of ice cream on a sunny Sunday afternoon in Blackrock, County Louth, and a real competition policy would have to target that issue.

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