Seanad debates

Thursday, 14 June 2012

Competition (Amendment) Bill 2011: Report and Final Stages

 

10:30 am

Photo of Sean BarrettSean Barrett (Independent)

I thank the Minister, as always, for his wisdom. There is exasperation about how slowly we are moving in this field. We will support the Minister's efforts to move things on. This is a sentiment expressed in an announcement by the International Monetary Fund this morning. On page 24 of the IMF agreement of December 2010, Ireland agreed to require the Competition Authority to lift restrictions in competition law which exclude certain sectors from the authority's scope and to identify processes to address these exclusions. More activity is needed in this area. The Minister for the Environment, Community and Local Government, Deputy Hogan, expressed this view in a speech to the Dáil on 5 November 2005 when he stated the performance of the Competition Authority and operation of the Competition Act had not been as effective as consumers were entitled to expect.

It does not indicate a sense of urgency when the annual report of the Competition Authority for 2011 refers to the issuing of one search warrant and four summonses. I regret to note that the position adopted by the authority in the health insurance case was against the consumer. It also acted as an ally of the Health Insurance Authority whose role, as far as I can ascertain, is purely to prevent competition. It also gave the nod on the issue of buses and was silent when the then Minister for Transport, Mr. Noel Dempsey, required a 41% increase in airport charges, a move that did serious damage to the country. I would like to have a much more alive and alert watchdog, one which barks when restrictive practices come to light. Unfortunately, such practices are inherent in the Irish economy.

The National Competitiveness Council, which I am pleased the Minister has given a role, offered the following advice:

In response to the Programme, however, Ireland should not undertake reform solely to satisfy the terms and conditions set out by the EU/IMF. Instead, we should seize the opportunity to continue to deliver structural reforms that can lead to long term prosperity, recognising that competition policy is good for Ireland – benefiting consumers and helping to restore Ireland's international reputation. Many sectors continue to engage in special pleading – seeking to maintain restrictions to competition and barriers to entry. The Council support the principle of enhancing competition in all sectors – this was reflected in much of the analysis in the Council's Costs of Doing Business in Ireland 2011 report.

This should be the agenda. A proposal was made that the Minister amalgamate the National Consumer Agency and the Competition Authority. I wonder if the National Competitiveness Council would not be a better fit to drive the kind of agenda about which the Minister has spoken. While I appreciate his determination, progress in these matters has been slower than we had hoped. We must be much more radical than we have been in this area and the Minister's radicalism will be supported on this side. Given the special pleading and regulatory capture reported by the National Competitiveness Council, it is vital that progress is faster.

All of the restrictive practices in electricity generation seem to be incorporated in the price of electricity. This issue was the subject of strong debate at the Kenmare conference two years ago. Who guards the guardians and who regulates the regulators? These are questions the Minister himself asked. Do the regulators get captured by the sector they regulate? Does the relationship become too cosy, as was the case with social partnership for some time? Driving competition will require great energy and force because our natural instinct is to prevent competition whenever we can. Efforts are also made to capture the regulators. The major change in the Dáil and Seanad at the most recent general election indicated we must move away from the type of economy we had and become internationally competitive. I assure the Minister of my support in all his endeavours in that regard. The fault I find with the Bill is that progress is not being made quickly enough. The purpose of the amendment is to speed up the process and, more important, encourage the Minister in his efforts in that regard.

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