Written answers

Thursday, 26 April 2012

Department of Enterprise, Trade and Innovation

Competition Law

8:00 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Question 11: To ask the Minister for Jobs, Enterprise and Innovation the reason for the delays in the Consumer and Competition Bill; if he will consider dealing with the media mergers aspect of the Bill separately in order to expedite its passage; and if he will make a statement on the matter. [20923/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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In July 2011 the Government approved the draft heads of the Consumer and Competition Bill giving, inter alia, effect to the recommendations of the Advisory Group in full with two amendments:

o one sees the change in relevant Minister for such public interest considerations

from the Minister for Jobs, Enterprise and Innovation to the Minster for Communications, Energy and Natural Resources, and

o the other relates to designating the relevant Joint Oireachtas Committee as a notifiable body when the Minister is considering proposed media mergers from the public interest aspect.

The recommendations of the Advisory Group are aimed at strengthening the public interest test in respect of media mergers.

While the Advisory Group on Media Mergers reported to the then Minister in 2008, no final decision was reached as to where responsibility for the public interest should lie until this Government approved draft Heads of the Bill in July 2011. This draft is currently with the Office of the Parliamentary Counsel for drafting.

Priority has had to be given in the implementation of our legislative programme to other areas of competition law, particularly the need to meet EU/IMF commitments that have been incorporated in the Competition (Amendment) Bill 2011.

I see no benefit in progressing a stand-alone piece of legislation, to be followed in due course by a more comprehensive package of reforms. The consolidation of the various element of consumer and competition law into a single Act is entirely in keeping with the principles of better regulation and with the trend within Government to consolidate and simplify legislation for ease of reference for all users.

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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Question 12: To ask the Minister for Jobs, Enterprise and Innovation the reason that he has not requested the Competition Authority under Section 30 (2) of the Competition Act 2002 to carry out a market study or analysis of the cement, concrete and aggregates industry. [20816/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Competition Authority is the statutory body responsible for the enforcement of competition law in the State. Section 29 (3) of the Competition Act 2002 provides that the Authority is independent in the performance of its functions. Under section 30(1)(b) of that Act, the Competition Authority is responsible for investigating alleged breaches of the Act. As investigations and enforcement matters generally are part of the day-to-day operational work of the Authority, I have no direct function in these matters.

In its 2011 Annual Report the Competition Authority acknowledges that allegations of anti-competitive activities in the concrete and cement industries are being investigated by it on foot of information received. Furthermore I am aware from media coverage that private court proceedings in this area are on-going. In these circumstances it is inappropriate for me to request the Authority to carry out a market study in this area or to comment further on the matter.

Under section 30 subsection (1) of the 2002 Act, the Authority can study and analyse any practice or method of competition affecting the supply and distribution of goods or the provision of services or any other matter relating to competition. Availing of this provision the Authority has carried out a number of in-depth market studies in various sectors of the economy including professions, banking, transport, private health insurance and the grocery sector. The Authority has published its reports into these sectors and made recommendations aimed at improving competition in these areas. This work can involve a detailed economic analysis of a sector.

Under section 30 subsection (2), I can request the Competition Authority to carry out a study or analysis of any practice or method of competition affecting the supply and distribution of goods or the provision of services. Such a request however is not a request to carry out an investigation into alleged criminal behaviour. One exercise involves an in-depth economic analysis of a market; the other involves a criminal investigation into alleged breaches of the law.

In the context of the Action Plan for Jobs, I have requested the Authority to identify any sheltered areas of the economy where competition is restricted and commission studies on such areas where appropriate.

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