asked the Minister for Industry, Trade, Commerce and Tourism if he will give details of the arrangements he has in mind for the new office of fair trading; the resources and power it will have to promote competition; the role the price line offices will have under the new proposed legislation; and if he is satisfied that the proposed new office will be adequate to monitor price control and give the necessary protection to consumers in all areas of pricing and competition.
Written Answers. - Office of Fair Trading.
33.
The proposed new arrangements which have been approved by the Government will involve significant changes in relation to competition, consumer protection and price control. The number of agencies dealing with these matters will be reduced from four to two and the Director of Consumer Affairs and the Restrictive Practices Commission will be given new functions and powers. A number of services, particularly those relating to banking, transport and electricity are to be brought within the scope of competition legislation for the first time.
In addition to its existing responsibilities in relation to consumer protection, the office of director will assume, under the proposed new arrangements, responsibility for the investigation of restrictive practices and for the enforcement of competition and prices legislation generally. In recognition of this change, the title of the office will be changed to Director of Consumer Affairs and Fair Trade.
The powers of the commission, which will be renamed the Fair Trade Commission, will be extended to provide greater flexibility and it will be given power to initiate public inquiries and fair trade rules. The commission will also take on the function, at present carried out by the Examiner of Restrictive Practices, of investigating proposed mergers and takeovers. It is proposed to abolish the post of Examiner.
It is also proposed to introduce a new exceptional procedure, to be used subject to appropriate controls, to deal quickly with anti-competitive practices outside the context of a formal inquiry.
The present detailed arrangements in relation to price control, which involve prior notification and approval of price increases, are to lapse except for existing requirements relating to price display and the retail price of milk in certain areas. The National Prices Commission and the Priceline Offices are being discontinued. The basic powers in relation to price control in the Prices Acts are being retained and the Fair Trade Commission will advise, as appropriate, in relation to prices.
The proposed new arrangements will result in net savings to the Exchequer and to business generally. The Minister is confident that the proposed arrangements will serve to promote competition and protect consumer interests in an active and cost effective way.