Aideen Hayden (Labour) | Oireachtas source

I welcome the Minister to the House. I also welcome the Bill which, as the Minister pointed out, has three aspects, the merger of the National Consumer Agency and the Competition Authority; the regulation of the grocery goods sector and the media mergers and acquisitions section, which retains the basic model of the current legislation but is designed to ensure diversity of content and ownership of the media, which is important to a healthy democracy. There has been some criticism of various aspects of this legislation, for example, that we should not always pursue the merger of entities purely for the sake of it. Some aspects of that merger have been criticised on the basis that the Competition Authority and the National Consumer Agency are successful bodies in their own right and merging them does not necessarily bring about any improvement. Paul Gorecki from the Economic and Social Research Institute, ESRI, said that it would take time to bed down a new structure and for it to perform in an efficient and effective manner. The proposed savings of €170,000, which are small, were brought into question in respect of shared services, given that the Competition Authority already has some shared services.

Some other jurisdictions, such as Denmark, Finland and the UK, have merged competition with consumer protection. Sweden, Belgium and Austria, however, have not gone down this route. A regulatory impact analysis, RIA, was carried out for this Bill. It has been given support as a measure to enforce both competition and consumer law. The RIA determined that it would result in a more co-ordinated approach to the consumer and competition policy areas and enhance consumer welfare. That is what we all seek to achieve from any decisions we take. This Government committed to improving the regulatory framework and the Minister committed to vindicating and protecting consumer rights.

In respect of the grocery goods sector, there has not been uniform or widespread agreement on the new measures in the Bill.

It is important to recognise that the new measures in the Bill before the House have not been the subject of uniform or widespread agreement. Certain bodies, like Retail Ireland, have been supportive of it on the basis that it should lead to fairer practices in the food supply chain. The food and drinks industry has also supported the publication of the Bill. On the other hand, it has been criticised by certain financial commentators as a sell-out to the food industry and a step backwards in time into old-style protectionism. It is important that we keep any legislative measures under review. I have a particular interest in not allowing this country to go down some of the roads it went down in the past. Some aspects of this matter, such as the below-cost selling of fruit and vegetable products, have been highlighted and have come into the public domain.

It is important for this country, as a small open economy with a vital and vibrant food sector, to ensure Irish companies can get their products onto the shelves in a fair manner. If they cannot get a certain extent of trade, they cannot move into the export market. That is why the domestic market is so critical in a country of approximately 4.5 million consumers. We must always keep it to the forefront of our minds that it is not just about the initial producer of the good, or the ultimate consumer of the good - it is about the ultimate welfare of consumers, in the broader run, and the variety of goods and services available to them. We do not want a retail sector with a large number of multiples that list their products in countries other than Ireland. We do not want it to be the case that a good Irish product cannot get on the shelves. That is why I think we need to be cognisant of variety in our grocery sector as well.

I would like to speak about the media aspects of this legislation. The Bill goes some way towards assisting to ensure diversity of media in this country, but concern has been expressed about the possibility that it does not go far enough. It is pointed out in the Bills digest produced by the Oireachtas Library that the extent of the shareholding in media services in this country has been on a deteriorating trajectory. In other words, it has become more and more centralised in particular individuals and media groups. I emphasise again that Ireland is a small country with a small economy, in terms of our domestic market. It is important to bear in mind that the media in this country exerts a significant say in the political life of this country. We must be conscious that we have seen a great deal of centralisation of media in this country in recent times, particularly since the 1990s.

I presume it is never good for a Minister to lose part of his or her portfolio, but I think it is good that responsibility for the media is being given to the Department of Communications, Energy and Natural Resources. We have to think outside the box in terms of what constitutes communications now. Increasingly, traditional media is under severe pressure. More and more influence is being brought to bear by the Internet and social media. When we look at media issues like media ownership and control of media, it is important to be cognisant that large areas of social media and the Internet are controlled by the traditional media that have moved into this area. We have to be aware that the traditional media are exerting an influence on social media and on Internet communications.

This is a positive Bill. Despite the criticisms I have mentioned, I believe it will move us in the right direction in terms of competition and consumer protection. The Title of the Bill - the Competition and Consumer Protection Bill 2014 - is very apt. We need to be conscious that all and any legislation we deal with must be kept open to review in light of the developments we face on a daily basis.