Dáil Éireann debate -
Tuesday, 10 Oct 1995

Vol. 456 No. 6

Written Answers. - Below Cost Tendering.

Kathleen Lynch

Question:

47 Kathleen Lynch asked the Minister for Enterprise and Employment the proposals, if any, he has to address the increased level of litigation arising from the practice of below cost tendering in the construction industry; and if he will make a statement on the matter. [14319/95]

Minister for Enterprise and Employment (Mr. R. Bruton)

I am not aware of the specifics of the matter raised by the Deputy.

From a competition perspective the Competition Act, 1991 sets out the conditions under which free and fair competition takes place, by prohibiting anti-competitive practices and the abuse of a dominant position. At present the Act is enforced primarily by way of private civil actions in the courts between disputing parties.

Section 4 of the Act prohibits and makes void all agreements between undertakings, decisions by associations of undertakings and concerted practices which have as their object or effect the prevention, restriction or distortion of competition in trade in any goods or services in the State or in any part of the State. Section 5 prohibits any abuse of a dominant position.

Section 6 provides that any person aggrieved in consequence of anti-competitive activity has right of action in the courts for relief, by way of injunction or declaration and damages, including exemplary damages. The Minister has a similar right of action but the reliefs available to the Minister are restricted to an injunction or declaration.

While the Act illustrates examples of what may be prohibited, it is ultimately for the courts to decide what constitutes a breach of the law in any case brought before them. As Minister, I have no function in adjudicating whether the matter referred to by the Deputy, or any other practice, is in breach of competition law. This is a matter entirely for the courts to decide.

I would also refer the Deputy to the Competition (Amendment) Bill, 1994 which proposes to give the Competition Authority powers to investigate anti-competitive activity, either on its own initiative or as a result of third party complaints, including the power to take court actions where necessary. In line with the policy agreement for Government I am committed to strengthening the enforcement of competition by giving the Competition Authority powers of enforcement and by enabling the courts to impose stiff fines on those found to be engaging in unfair competition. I intend to seek to have the Bill enacted as soon as possible.