Written answers

Wednesday, 17 October 2012

Department of Jobs, Enterprise and Innovation

Conflict of Interest

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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To ask the Minister for Jobs, Enterprise and Innovation if a conflict of interest exists between his former employment and current shareholding in a major integrated construction materials manufacturer and his role as the relevant Minister for Competition considering his refusal to ask 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 especially in view of recent revelations where the company of his former employment and current shareholding is accused of conducting a market eviction strategy at the cost of taxpayers and independent producers which has led to a loss of jobs to the economy; and if he will make a statement on the matter which does not include the citing of sections 29 (3) and 30 (1) (b) of the Competition Act 2002. [45371/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I am satisfied that no conflict of interest arises in this situation. The obligation on me as a Minister is to declare my interests which I have done. These interests are well known. The situation where a Minister might be required to step aside from a decision making process is set out by the Guidelines for Office Holders prepared by the Standards in Public Office Commission.

Accusations against any business of breach of competition law is matter for the Competition Authority and I have no function in this matter. 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. Investigations and enforcement matters generally are part of the day-to-day operational work of the Authority and I have no direct function in these matters.

Separately, 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 which is often referred to as a market study generally involves a detailed economic analysis of a sector in its entirety.

Under section 30 subsection (2), I, as Minister for Jobs, Enterprise and Innovation, 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 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 understand court cases are ongoing in relation to these matters. 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.

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