Deputy Keating said BTE and An Post should be covered. They are covered; they are in. What may be confusing some people is that they have existing monopolies. They are not excluded from the scope of this Bill. They have been excluded up to now but they are brought fully into the scope of this Bill. The monopoly position of those bodies does not change and their business will be scrutinised where they are in competion with anybody in the private sector.
Deputy Keating said the penalties should be increased. The penalties are being increased from a £200 fine and £10 per day for a continuing offence to £500 and £50 per day and on indictment from a £5,000 fine and £500 per day for a continuing offence to £10,000 and £1,000 per day. I do not think anybody could object to that but, if so, we will hear from them on Committee Stage. Deputy Keating must not have spotted where they have been increased.
Deputy Keating said that enforcement of consumer protection legislation is not effective and others made the same point. As I have explained, one of the primary purposes of this Bill is by the rationalisation of the procedures to streamline them and give them a better opportunity of being enforced. The staff of the director's office have not been decreased but have been increased in the past year or so. I have given the allocation, comparing 1986 with 1987, so this is not a cosmetic exercise.
Deputy Flood raised the importance of labelling and other Deputies referred to this, too. That is covered by the Consumer Information Act, 1978. Food labelling regulations of 1982 are being enforced by the Department. Similarly, there are textile labelling regulations under the Bill and the director will enforce all this legislation. Let me draw Deputy Flood's attention to the fact that new regulations in June this year require the E numbers to be given in the case of additives in food products. I provided in regulations in June 1987 that the letter "E" as a clear indication that additives are in the product be displayed for everybody's benefit.
Deputy Yates said that we have never pioneered our own legislation and that we have slavishly follwed EC Directives for five to ten years. It is much the same point that Deputy Bruton raised in relation to the control of abuse system as against the prohibition system. I will deal with that in more detail later. The allegation by Deputy Yates does not stand up, certainly not to the extent he was trying to infer. Our two major pieces of legislation, the Consumer Information Act and the Sale of Goods and Supply of Services Act, date from 1978 and 1980 respectively. The main thrust of the Consumer Information Act is to deal with misleading advertising. A directive in misleading advertising was adopted by the EC only in 1984, six years after we passed our Act. Instead of lagging behind the EC we are ahead in consumer legislation. Neither do we lag behind any other member states in relation to other directives. We are up to date and are ahead in many areas.
Legislation is currently in preparation in a whole range of areas as a result of which further protection will be afforded to the consumer. Legislation is in preparation on product liability, consumer credit, the practice known as doorstep selling and product safety. I am requiring that the annual percentage rate of charge in interest be shown in advertisements which make reference to the cost of credit. This is the regulation which has gone through the Seanad and will be coming before this House. Since the regulation was brought before the Seanad it has been represented to me that perhaps the limits should have been increased somewhat. I do not have a closed mind on this matter and I am concerned that regulations should be made to meet present-day circumstances.
Deputy Yates gave an example of an advertisement offering a refrigerator for sale, the price having been reduced from £100 to £80. I suppose we could almost offer him a job in the Abbey Theatre on the basis of his presentation. He alleges that misleading advertising of this type is not dealt with, but I take issue with him on that point. Whatever example is given, the Consumer Information Act prohibits any indication that a product has been reduced from, say, £100 to £80 unless that product had been sold at the higher price for at least 28 days beforehand. Deputy Yates made wild allegations that we do not have legislation to deal with that situation but it is well and truly covered in the Consumer Information Act.
Deputy Yates also talked about the possibility of a small claims court. This is currently under examination in my Department. The Deputy will be aware that there are major problems involved in setting up such a tribunal for dealing with consumer complaints which would operate outside the existing courts system. Apart from the question of cost which must be significant, there are issues such as the procedures to be followed by such a tribunal, the legal representation of parties appearing before it and the enforcement of decision once reached. All these questions require to be teased out and when examination of the matter is fully concluded we will have consultation to see if it is feasible. Deputy Yates was portraying the procedure as similar to a nice cosy chat involving two or three people, whereby agreement would be reached. What if the agreement is not carried through? It is a nice idea but when one thinks it through one realises that there is another side to the coin. However, it is being examined.