Written answers
Tuesday, 27 November 2007
Department of Enterprise, Trade and Employment
Competition Legislation
8:00 pm
Michael Creed (Cork North West, Fine Gael)
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Question 354: To ask the Minister for Enterprise, Trade and Employment his views on the application of the competition legislation in the context of the dispute between the Health Service Executive and the Irish Pharmaceutical Union; if it was the intention of that legislation to prohibit negotiation between an employer and a representative organisation; and if he will make a statement on the matter. [30973/07]
Micheál Martin (Cork South Central, Fianna Fail)
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I understand that both the Health Services Executive (HSE) and the Department of Health separately received legal advice on the interpretation and application of the Competition Act 2002. Section 4 of that Act prohibits anti-competitive practices, such as price fixing, by "undertakings". An "undertaking" is defined in the Act as "a person being an individual, a body corporate or an unincorporated body of persons engaged for gain in the production, supply, or distribution of goods or the provision of a service". This definition has been in use in Irish competition law for some time and is supported by EU case law. Section 4 mirrors Article 81 of the Treaty establishing the European Community.
Under the 2002 Act, the Competition Authority is the independent statutory body responsible for enforcing competition law. The Authority has previously found that self-employed persons are "undertakings" for the purposes of the 2002 Act, and as such collectively bargained agreements concluded by representative bodies on behalf of such persons are prohibited agreements under section 4. The Competition Act does not prohibit negotiations between an employer and a representative organisation when such a body is representing employees.
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