Seanad debates

Tuesday, 8 July 2014

Competition and Consumer Protection Bill 2014: Second Stage

 

4:20 pm

Photo of Kathryn ReillyKathryn Reilly (Sinn Fein) | Oireachtas source

I welcome the Minister to the House. This legislation provides for the merger of the National Consumer Agency and the Competition Authority into a single body to be known as the competition and consumer protection commission. These are two important agencies. It also provides for regulation of certain practices in the grocery sector and amends the law regarding media merges by implementing the recommendations of the 2008 special advisory group on media mergers report.

I will keep my comments brief and touch on one or two issues. Many of the things I was going to mention have been mentioned earlier and there is no point in labouring them. Section 17 of the Bill prescribes those organisations which the new body will work with. It does not mention Irish Water. Water charges are one of the biggest consumer issues facing people at this time and although we have repeatedly raised this matter in the Dáil with the Minister, this has not been taken into consideration.

The Government has established a new governance model to manage, fund and deliver water services which will be carried entirely by the consumer. This new governance structure includes Bord Gáis, Uisce Éireann, the Financial Regulator and the Department of the Environment, Community and Local Government. We are concerned that there may be a critical omission here. Who will independently represent the consumer’s voice in this water reform process? Can the Minister give consumers confidence that they will have full recourse within the new structure? Will the provisions and the functions of the Consumer Protection Act 2007 now follow through for citizens in the context of Irish Water? Will their interests and welfare be protected?

When Sinn Féin Deputies raised the need for strong consumer oversight with the Minister for the Environment, Community and Local Government in the context of protecting consumers he stated that the Commission for Energy Regulation as the independent regulator of Irish Water has the powers to direct Irish Water to prepare a code of practice on any matter that the CER considers necessary and appropriate to secure the interests of the customers of Irish Water. The CER has the power to direct Irish Water to comply with a code of practice prepared in accordance with the legislation. The CER may consult with Irish Water, the public or any other person it considers appropriate.

The National Consumer Agency participated in the consultation on the establishment of a water services utility during 2012 and submitted proposals to his Department which were considered in detail. While that is all fine, the Commission for Energy Regulation is a regulator and not a consumer watchdog with real teeth to protect and vindicate consumers' rights.

I wish to speak about resourcing the CCPC. The Minister has said savings of €170,000 per annum will be achieved from the merger of the National Consumer Agency and the Competition Authority. The legislation will give additional powers to the new commission resulting in a range of new powers for the investigation of serious competition offences. While additional staff were allocated to the Competition Authority to back up improved enforcement powers in 2012, it would not be acceptable for the Minister not to further resource this new beefed-up body, be it within the organisation itself or through the criminal justice system. Taking on cartels on paper is not good enough. The system needs to have the manpower to make use of these enhanced powers. Resourcing accompanied with organisational training and development should be part and parcel of a proposal such as this.

I had intended raising the grocery sector and media mergers, but they have been mentioned already and I want to give other Senators and the Minister time to respond.

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