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Dáil Éireann debate -
Thursday, 23 Mar 2000

Vol. 516 No. 5

Priority Questions. - Competition Authority Staffing.

David Stanton

Question:

89 Mr. Stanton asked the Tánaiste and Minister for Enterprise, Trade and Employment the proposals, if any, she has to increase the number of staff in the Competition Authority; and if she will make a statement on the number of resignations in the authority. [8169/00]

Over the past six months, the chairman and one of the four ordinary members of the authority together with five professional staff have resigned to take up alternative employment. I recently announced the appointment of Dr. John Fingleton as new chairman of the Competition Authority with effect from next May and yesterday I announced the appointment of Dr. Paul Gorecki as a new member of the authority. He will take up his position next June.

A competition to fill the vacant economist posts is under way and a competition for legal advisors will be advertised this week. In addition, my Department, together with the authority, is undertaking a study of the authority's operations with a view to assessing the authority's future resource requirements. I am fully committed to ensuring that the authority is adequately resourced to discharge its important statutory functions and I will address speedily any resource deficiency identified in the study when the report is to hand.

Is the Minister dismayed by the number of resignations from the Competition Authority? How many research staff are employed by the authority? Does she agree that the authority is starved of resources and manpower and that this is why there are so many resignations?

The authority has 27 posts – five economists, two legal advisors, one assistant principal, two HEOs, two EOs and seven COs. Of the seven people who resigned from the professional staff, six went to other regulators because of higher salaries. There is a salary related issue which we have resolved with the Department of Finance. In the past there was not much competition for people with this expertise, except the authority itself. However, the establishment of other regulators has brought new competition into the situation.

Is the Minister concerned by the fact that some staff may gain much expertise and knowledge by working for the authority and then move to the private sector? Are there plans to impose a restriction or embargo on such movements? What is the position with the authority's investigation into alleged uncompetitive practices in the beef industry? Has this run into the sand?

The authority gave evidence to an Oireachtas committee on the beef industry but could find no evidence to substantiate the allegations and complaints. That is why, in January, I established a three person group comprising the former Secretary of the Department, Kevin Bonner, Seamus Sheehy, an agricultural economist and Colm McCarthy, to look at this issue. I expect their report shortly.

There is no way to prevent people moving from the public to the private sector. We used to encourage this but because of the buoyancy in the economy we are losing many good people from the public sector. There are wider implications concerning remuneration packages, levels of pay and so on. There will be problems in the State sector unless we address those issues. The strategic management initiative and the recently agreed partnership process will enable us to introduce levels of pay for professional staff and others which will allow the public sector to hold on to the expertise and talent it needs.

Is the Minister concerned that there are so few research staff working with the Competition Authority? Will she address this matter given the concerns of the former Director of Enforcement? Are there any plans to second gardaí to work with the Competition Authority, as happens with other State authorities?

There are no plans to second gardaí at present. Earlier I received a report from the mergers review group which deals with the role of the Competition Authority and I look forward to reading its views. We must examine this area. We have addressed the initial staffing problems but there are other problems. I will also examine whether the authority requires the services of the gardaí. I am as concerned as the Deputy about ensuring that levels of remuner ation are attractive to those with the economic and legal expertise to make the authority an effective enforcer of competition law in this economy.

This matter is urgent. There are media reports today that the price of a pint has gone up by 5p in Dublin. Is it not urgent that authority is given the proper resources immediately? This has been analysed to death.

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