Dáil Éireann debate -
Thursday, 3 Dec 1998

Vol. 497 No. 7

Written Answers - Competitiveness Policy.

Brian O'Shea

Question:

62 Mr. O'Shea asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans, if any, she has to issue a Green Paper on competitiveness in the Irish economy; and her views on the continued existence of cartels in the Irish private sector. [26100/98]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

The National Competitiveness Council was established by the Government in May 1997 pursuant to Partnership 2000. The council's primary role is in the area of influencing policy within which enterprises have to operate and to promote an awareness of competitiveness issues within society.

The council's First Annual Competitiveness Report and Summary Statement on Competitiveness, which were published in March 1998, highlighted key areas for action, including competition, in order to improve competitiveness. In this context also, the council has recently published a statement on Telecommunications: A Key Factor in Electronic Commerce and Competitiveness. Action is ongoing in relation to implementation of the council's recommendations to improve competitiveness. The council's Second Annual Competitiveness Report is expected to be available early in 1999.

In the light of the role and work programme of the council, I have no plans to issue a Green Paper on competitiveness in the Irish economy.

In regard to allegations of cartels in the private sector, the Competition Act, 1991, prohibits anti-competitive practices and the abuse of a dominant position. The Act applies to undertakings, defined as a person being an individual, a body corporate or an unincorporated corporate body of persons engaged for gain in the production, supply or distribution of goods or the provision of a service.

The independent Competition Authority is responsible for enforcing the Competition Acts and in particular section 4 of the 1991 Act which prohibits, 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 the State, including,inter alia, the direct or indirect fixing of prices, trading conditions, limiting or controlling production, sharing markets or sources of supply.

With the enactment of the Competition (Amendment) Act, 1996, public enforcement powers in this regard were given to the Competition Authority, there are now two alternative ways for an individual-firm to pursue allegations of breaches of competition rules: (i) take civil action under Section 6 of the Competition Act, 1991, or, (ii) make a complaint to the Director of Competition Enforcement requesting him to investigate alleged breach(s) of competition law.

Any complaints therefore alleging collusion or price fixing are a matter for the Director of Competition Enforcement to investigate.

The Director also has the power of investigation on his own initiative of any alleged contravention of competition rules that he suspects has occurred or may occur.