Charles Flanagan (Laois, Fine Gael) | Oireachtas source

This is an issue that arose on Second Stage and that has also been in the public domain in the context of this legislation and the general data protection regulation. I put forward reasons administrative fines should be imposed on public authorities and bodies only where they were acting as undertakings as understood under competition law. It is important that we distinguish between the public and private sectors because, unlike the private sector, a fine imposed on the public sector has the effect of reducing the funds available to it to carry out its statutory functions. For example, if a local authority was to face a fine of €100,000 or more, this would undoubtedly result result in a restriction of services. The sanction would ultimately be felt by the citizen, user or potential user of the public services concerned. That is why fining public bodies differs from imposing the same sanction on private bodies. Of course, the general data protection regulation leaves it to member states to decide whether such fines should be imposed on public authorities and bodies and, if so, to what extent. If public bodies were to be fined, Senators would undoubtedly seek redress or funding in lieu of the fine imposed. Were such replacement funds to be provided to compensate for funds lost in paying a fine, there would be a circular flow of public funds. Where a public body is acting as an undertaking and in competition with the private sector, for example, in the provision of transport or hospital services, the Bill allows for the imposition of fines. In that way, we ensure fair trade and a level playing field and that there will not be an element of discrimination between the public and private sectors which might otherwise be the case.