Seanad debates

Tuesday, 8 July 2014

Competition and Consumer Protection Bill 2014: Second Stage

 

3:50 pm

Photo of Paul CoghlanPaul Coghlan (Fine Gael) | Oireachtas source

I welcome the Minister to the House and thank him for his comprehensive overview of these proposals. The Bill aims to merge the Competition Authority and the National Consumer Agency into a new pro-consumer body. This reform is long overdue and part of the Government's programme to merge regulatory agencies and secure necessary efficiencies. The Bill seeks to update competition law in a number of different respects including, in particular, in the areas of media mergers and the grocery sector.

A strong and diverse media landscape is a key part of the necessary infrastructure for a functioning democracy. I welcome the guidance and clarity provided in this area by the legislation and hope the provisions being introduced will aid in maintaining a diverse and healthy print and electronic media landscape into the future.

I also welcome the measures being introduced to address competition matters in the grocery sector. This is an area that needs to be monitored closely to ensure the relationships between retailers and suppliers maintain the competitive dynamic necessary to allow consumers value and choice. We have a competitive landscape for retail in Ireland, in part due to the sensible and reasonable measures taken by the Government on retail planning. We have, through our planning system, ensured there is balanced retail provision. No one shop or chain dominates and we have both large and small stores competing to ensure consumers and communities are well served.

We often criticise ourselves for failings in key areas. On retail planning, however, we have largely got matters right. We have not facilitated the big-box retailers that suck up trade from surrounding towns and centres. Instead, we have facilitated, in most cases, a sustainable approach to retail development which focuses on suitable locations close to where people live. The Minister will need to monitor the adherence to the code for the retail trade. Retailers and suppliers are inventive and will look for ways to wriggle out of new compliance requirements. The Minister must ensure the law keeps pace with the regulatory intervention.

I supported the objectives underpinning the groceries order. The way in which alcohol has been sold below cost shows that some of the concerns expressed by those opposed to its repeal were well placed. It is an unintended consequence of that action that alcohol sales have become such a major aspect of price competition between retailers. This issue needs to be tackled urgently and I hope the Minister for Health will bring forward proposals in this regard.

I welcome this Bill and hope it achieves the objectives that underpin its introduction. It is a major piece of reforming legislation with three main aims, which the Minister dealt with more than adequately. This is one area of the law where constant vigilance is required to ensure legal prescriptions keep pace with commercial practices that have the potential to distort trade or have a damaging impact for consumers.

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