Seanad debates

Thursday, 14 June 2012

Competition (Amendment) Bill 2011: Report and Final Stages

 

10:30 am

Photo of Feargal QuinnFeargal Quinn (Independent)

I welcome the Minister back to the House. He has become very fond of us in recent days. Senator Barrett has set out his concerns in regard to this amendment very well. I am not quite sure the amendment would solve all the problems to which he referred, but it is a step in the right direction. Senator Barrett referred to the observation by one of the visiting troika officials that the call-out fee for a doctor in this country is double what it is in Belgium. There are many instances of this type of anomaly which clearly point to the need for greater competition.

The question is how it can be achieved. I consulted the Golden Pages recently in search of a dentist's address and was astounded by the number of advertisements for dental services north of the Border. I have also noted newspaper advertisements offering medical services in Hungary and India, with packages including treatment and travel costs. When I started in business, resale price maintenance was the norm. We were told that one could only sell Jacobs biscuits or Cadbury's chocolate, for instance, at the fixed price. That practice was accepted by retailers and by the Government of the day. It was not until the British Government removed resale price maintenance in the neighbouring jurisdiction that we did the same and prices came down. As Senator Barrett observed, there are many such cases of restrictive practices.

The amendment seeks to insert several new provisions in section 30 of the principal Act. The new subsection (1)(h) would broaden the remit of the Competition Authority by allowing it to have oversight of potentially anti-competitive practices in public as well as private bodies. This is a very important point and Senator Barrett pointed to the areas of energy and health to support his case. There seems to be little or no competition in these sectors for reasons that are not entirely clear.

Another important element of the amendment is the provision in paragraph (j) that the authority should be able to make public any findings that are not commercially sensitive. It makes perfect sense that any data that are commercially sensitive should not be released in this way, but all other findings should be available for examination and review by the public. Paragraph (k) proposes the Competition Authority be allowed to act on its own right rather than requiring that investigations be initiated on some other basis. Everybody will agree surely that these are sensible proposals.

The proposed section 30(2) of the principal Act, as provided for in the amendment, seeks to address the fact neither the Minister nor the troika team - the latter for the duration of the bailout programme - has the right to request the authority to initiate an investigation into a particular matter. On each visit to Ireland, members of the troika team repeatedly urge that such and such be done. They and the Minister should have the right to instruct to the Competition Authority to complete any such investigation within a specific timeframe.

The examples to which Senator Barrett pointed can be well defended and should be in operation. I urge the Minister to accept the amendment on the basis it will strengthen Government efforts to encourage increased competition, with all the benefits which flow from that. It is a particular problem for this country that we have got into the habit of charging a much higher price than others for a range of goods and services. Senator Barrett referred to the cost of flights between Dublin and London before the introduction of competition on that route. I can well recall paying up to £300 for a flight when there were only two state-owned airlines operating on the route. There was an assumption at the time that this was how it should and always would be. The introduction of competition in this area was driven by Brussels and by those in Ireland with the vision to make changes which have been of huge benefit to the travelling public and to the economy. We can do a great deal to improve competition, reduce prices and make this country more competitive in the marketplace. The amendment is worthy of acceptance as part of our efforts in that regard.

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