Vol. 389 No. 5
asked the Minister for Industry and Commerce when he received a report from the Fair Trade Commission on the fixing of fees and restricting of advertising by engineers; if there has been or continues to be a delay in publishing the report; if so, the reason; the main recommendations of the report; and the action being taken on each recommendation.
8.
asked the Minister for Industry and Commerce if he will introduce legislation to remove restrictions imposed by accountancy bodies on their members in relation to advertising in accordance with the recommendations of the report of the Fair Trade Commission of 11 November 1987; if not, the reason; and if accountants are still fixing fees and restricting advertising in contravention of the recommendations of the commission.
I propose to take Questions Nos. 7 and 8 together.
The Restrictive Practices Commission (now Fair Trade Commission) report of study into concerted fixing of fees and restrictions on advertising in the accountancy profession, was the first in a series of reports to be produced by the Restrictive Practices Commission as part of a wide ranging study commissioned into the rendering of certain professional and analogous services. This report was received in March 1987 and it was published on 11 November 1987.
My predecessor received the Restrictive Practices Commission (now Fair Trade Commission) report of study into concerted fixing of fees and restrictions on advertising in the engineering profession, 1987, in May 1987. The report was published on 14 April 1988.
The commission recommended that the Minister should introduce legislation to make it unlawful for any person or group of persons to recommend fees or charges, to collude in setting fees or charges, to prevent members of these professions from setting their own fees or charges or to prevent them from deciding individually the basis on which fees or charges are calculated.
In the area of advertising, the commission recommended that the Minister should introduce legislation to make it unlawful for any person or groups of persons to attempt to prohibit or restrain such persons from advertising, from advertising fees or charges, or from making unsolicited approaches for business to potential clients by means of direct mailing or "cold calling". The commission also recommended that a group of such persons may, for the purpose of protecting the repute of the profession, make rules prohibiting advertising or prohibiting direct mailing or "cold calling" in certain circumstances.
The commission concluded by suggesting that prior to introducing the recommended legislation, the Minister might consider inviting the bodies to make the necessary amendments to their respective rules on a voluntary basis, within six months. My predecessor accepted these recommendations and gave the bodies a six month period to amend their rules.
A number of accountancy bodies have indicated their acceptance of the Fair Trade Commission's recommendations and are complying with them. I am aware that certain other of the accountancy bodies and the engineering bodies did not accept the recommendations of the Fair Trade Commission reports, and have not, therefore, desisted from the practices of fixing fees and restricting advertising.
The Fair Trade Commission have recently completed their study into restrictions in the patent and trade marks profession and this is being examined. Reports are awaited on the legal profession, and on architects, surveyors, auctioneers and estate agents. When all of these reports are to hand, I will then be in a position to introduce whatever legislation is necessary.
In view of the fact that the bodies concerned have not complied with the six months requirement, is it the Minister's view that the appropriate response to this report is to introduce enabling legislation now and that he could, by order, extend the remit of that legislation to subsequent bodies?
I am reluctant to involve myself in piecemeal legislation in the manner the Deputy has just suggested. However, I assure the Deputy that whatever legislation requires to be enacted will be enacted to deal with the three professions, and I intend to do it globally rather than enacting legislation on a piecemeal basis.
Does the Minister intend to put some sort of termination date to the voluntary amendment of rules so that he can bring some pressure to bear on these bodies rather than have them waiting until the last minute when legislation is finally got through the draftsman and so on? Could he consider putting some termination date beyond which legislation will be inevitable if they do not comply voluntarily?
As I have said, I await the Fair Trade Commission's report in particular on the legal profession. As regards a termination date, that will be a matter for the legislation itself. In advance of that I assure the Deputy I am in contact with representative bodies of the various professions with a view to bringing into line those who have not come into line with the commission's recommendations.
