Richard Bruton (Dublin North Central, Fine Gael)

I forgot to respond to Senator Kelly who, in fairness, raised issues which are unrelated to competition law. Revenue is, if one likes, the supreme monopoly. It will be a relief to people that we do not have two Revenue commissions in the State. The Senator raised a dilemma. If the Revenue Commissioners fail to intervene and allow a person to run up debts to the Revenue and others, their actions distort competition and expose people who are trading with the person in question to possible or even escalating losses. The Revenue Commissioners have a duty to collect money on behalf of the State and must be aware that they have primacy in any ultimate wind-up of a business. As their position will always be protected ahead of others, they must be careful to behave in a proper manner. If a business is experiencing a temporary problem, the Revenue will be approached and I am sure it will try to deal with the issue. However, if it were to show forbearance to a business in serious trading difficulties, it could result in others experiencing greater exposure to the business in question than should be permitted. Revenue must ensure fair play between different parties. While this is an area of expertise for the Minister for Finance, the issue the Senator raises is a genuine one.

I do not have sufficient knowledge of pricing practices in the mobile telephone business. However, it is the case that people buy packages that include a telephone, a billing system and the service offered by a specific provider. The telephone per se is merely a physical object and much of its value is determined when it is connected to a specific network. I do not know if this is an issue for investigation by the Competition Authority. The scenario described by the Senator differs considerably from a cartel, which is where a number of agents who should be competing in a market collude to drive up prices. While the Competition Authority is open to dealing with third party complaints, the issue to which the Senator refers is not a cartel.

On Senator Barrett's view that movement should be quicker, it needs to be recognised that the Government has introduced legislation to reform the legal and medical professions and strengthen the Competition Authority. We have also decided to strengthen its enforcement arm and the authority is also undertaking new studies in respect of areas of concern. Significant progress has been made in the course of a number of months. There is, therefore, a much greater level of activism around competition policy.

The Senator raised many public policy issues and asked whether we have a sufficiently competitive environment in areas such as health, bus transport and the energy sector. His question raises much wider issues than simply the powers of the Competition Authority. Progress is being made in this regard. We are reviewing the regulators to ascertain whether the framework within which they operate focuses sufficiently on competition and benchmarking prices against prices elsewhere. Even in this regard, it is necessary to strike a balance. For example, the focus on attracting new entrants to the electricity market probably did not bring down prices in the short term. In some cases, public policy issues arise which make an issue more complex than its competition dimension alone. I concur with the Senator, however, that it is important to ensure the competition dimension comes much more to the fore.

The Competition Authority has commented on waste management and asked whether we have a proper competitive environment in the waste sector. Its view is that changes are needed and its recommendations on the sector need to be taken seriously. While I am content that there is new momentum in this field, it does not mean all the castle walls are falling down before the Competition Authority. Achieving that outcome requires more persuasion. Moreover, it is necessary to balance interests in some of the sectors concerned, including, for instance, wind energy, because public policy issues may arise. While I do not propose to accept the amendment, I commend the Senators on introducing it.

The next Bill from my Department will provide for the merger of the National Consumer Agency and the Competition Authority. The National Competitiveness Council is different. It is serviced by Forfás and it acts in an advisory role across the whole of government. It deals not only with competition issues but also with labour market issues and all sorts of other issues. Its role is different from the regulation of the market, which is the consumer and competition dimension.