Written answers

Tuesday, 11 November 2008

Department of Enterprise, Trade and Employment

Proposed Legislation

10:00 pm

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 184: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if, with reference to the recent commitment given in Dáil Éireann to bring forward amending legislation to facilitate direct negotiations between the Irish Medical Organisation, the Department of Health and Children and the Health Service Executive, it is proposed to include other similar medical professional groups (details supplied) in that amending legislation who supply medical services nationally and are of national importance and strategic interest in the delivery of an efficient professional medical service here; and if she will make a statement on the matter. [39303/08]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Section 4 of the Competition Act 2002 prohibits and makes void all agreements between undertakings, decisions by associations of undertakings and concerted practices which have as their object or effect the prevention, restriction or distortion of competition in trade in any goods or services in the State or in any part of the State.

This reflects the provisions of EC Treaty Article 81 which contains a similar prohibition in relation to agreements, decisions and concerted practices which may affect trade between Member States. In general there is nothing to prevent the State, as a purchaser of services, from consulting with representatives of professional organisations in relation to the fees for those services. The key requirement in all cases is that the State must have the final say in setting the price it will pay for the services concerned.

In recent years both the Health Service Executive and the Department of Health and Children received legal advice which identified significant competition and procurement law issues such that it was not permissible to develop contracts for service and the associated fee arrangements through a negotiated process with the IMO under current arrangements. These matters are governed by both European Union and national competition law.

The Government is satisfied that the scope of the engagement by General Practitioners in the delivery of primary healthcare for the overall efficacy of the public health system makes a more direct form of engagement with the representatives of General Practitioners both necessary and desirable in order to protect public health. Accordingly, it is the intention, in the public interest to attain the objective of protecting public health, to pursue appropriate amendments to Section 4 of the Competition Act 2002 to enable the IMO to represent its members in negotiations with the HSE and the Department of Health and Children in respect of the services provided to the public health service.

The case, if any, for adopting a similar approach to other professional representative bodies would need to be examined in the light of the objective of ensuring a high level of public health protection and associated public interest considerations, and the scope to adopt such an approach in a manner consistent with EU competition law.

During the recent Social Partnership talks, Government committed itself to introducing legislation amending Section 4 of the Competition Act 2002 to the effect that certain categories of vulnerable workers, formerly or currently covered by collective agreements, when engaging in collective bargaining, would be excluded from the Section 4 prohibition. This commitment will take into account that there would be negligible negative impacts on the economy or on the level of competition and will have regard to the specific attributes and nature of the work involved, subject to consistency with EU competition rules. It is proposed that three specific categories of worker, namely voice-over actors, freelance journalists and session musicians will be covered by the exclusion. I can confirm that work is under way between the Department of Health and Children and Enterprise, Trade and Employment on the issue of amending Section 4 of the Competition Act 2002, in a manner consistent with EU competition law and national policy.

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