Written answers

Thursday, 14 December 2017

Department of Jobs, Enterprise and Innovation

Competition and Consumer Protection Commission

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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296. To ask the Minister for Jobs, Enterprise and Innovation if it is possible to adapt the current regulatory regime and empower the Competition and Consumer Protection Commission to issue civil financial sanctions in similar fashion to as provided by a court of competent jurisdiction when the Central Bank and Financial Services Authority of Ireland Act 2004 inserted the power to impose civil financial sanctions into Part IIIC of the Central Bank Act 1942. [53679/17]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Central Bank has a statutory function to regulate financial service providers in Ireland. Arising from this statutory function, the Central Bank can impose civil financial sanctions for non-compliance with regulatory requirements. The Competition and Consumer Protection Commission (CCPC) does not have an equivalent regulatory function and accordingly does not have the statutory power to impose civil financial sanctions.

I am aware that the Law Reform Commission published an Issues Paper entitled "Regulatory Enforcement and Corporate Offences" on 27 January 2016. The Issues Paper invited views on the supervisory and enforcement powers of the State’s main financial and economic regulators (including the CCPC) and the issue of civil financial sanctions was raised. I understand the CCPC made a submission to the Law Reform Commission on 19 September 2017 in response to the Issues Paper requesting the power to levy such sanctions.  Any recommendations or proposals that may emanate from this exercise will be carefully considered by my Department.

My Department has obtained advice on the issue of civil fines from the Office of the Attorney General to the effect that civil fines are not provided for in Irish law for anti-competitive practices. This advice is based on Article 38.1 of the Constitution which provides that no person shall be tried on any criminal charge save in due course of law. Therefore, any national legislation to introduce civil fines that would lower the burden of proof from beyond reasonable doubt to the balance of probability would pose constitutional difficulties due to the protection afforded in Article 38.1 of the Constitution.

On 22 March 2017, the EU Commission published a proposal for a Directive of the European Parliament and of the Council to empower the competition authorities of the Member States to be more effective enforcers and to ensure the proper functioning of the internal market. One of the Directive’s aims is to ensure that all National Competition Authorities are given the power to impose effective deterrent fines. The proposal is currently being debated at the Council Working Group on Competition and is also being considered by the European Parliament.

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