Simon Coveney (Cork South Central, Fine Gael)
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Question 66: To ask the Minister for Enterprise, Trade and Innovation when the proposal to merge the Competition Authority with the consumer agency was first made and when it will be completed. [2567/11]

Billy Kelleher (Cork North Central, Fianna Fail)
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The amalgamation of the Competition Authority and the National Consumer Agency was announced in October 2008 as part of the rationalisation plan for State agencies during the 2009 Budget speech. As both the National Consumer Agency and the Competition Authority were established under statute, it is necessary to give effect to the newly merged body by way of primary legislation. Since the date of the announcement my Department has been working, in conjunction with both bodies and the Department of Finance to bring about a smooth transition to a unified single body to oversee the area of competition and consumer protection.

At the time the merger of the two bodies was announced, work on the review of the operation and implementation of the 2002 Competition Act was underway. Submissions received following a public consultation process were being considered as was the report and recommendations of the Advisory Group on Media Mergers. Rather than give effect to the amalgamation of the Authority and NCA in a stand-alone piece of legislation, to be followed in due course by legislation to amend, reform and update the 2002 Act, it was decided to introduce a single comprehensive Bill that will:

§ create the new consumer and competition body,

§ update competition law,

§ strengthen the public interest test in respect of media mergers, in line with

the report of the Advisory Group on Media Mergers,

§ make some minor amendments to the consumer protection legislation, and

§ give effect to the Government commitment under "Towards 2016"

regarding the exemption of certain specified categories of vulnerable

workers from competition law.

While work on the draft legislation on this basis was progressing, a number of other developments arose which have led to additional requirements in the Bill. The Renewed Programme for Government contains a specific commitment to "implement a Code of Practice for doing business in the Grocery Goods sector to develop a fair trading relationship between retailers and their suppliers" and "to review progress of the Code and if necessary to put in place a mandatory code". Provision to place a code for retailers and suppliers on a statutory basis will be included in the proposed Bill.

This all-encompassing approach to the draft legislation has to some extent delayed the legislation for rationalisation of the two bodies. I am, however, of the view that we will be better served in the long run by a single legislative measure that both establishes the new body and provides for a combined and updated consumer and competition code with appropriate enforcement provisions being given to the new body. Draft Heads of the Bill have been completed and circulated to Ministers for their views. It is my intention to bring these Heads to Government shortly for approval to draft the Bill.