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Dáil Éireann debate -
Thursday, 20 Apr 2000

Vol. 518 No. 5

Ceisteanna–Questions. Priority Questions. - Competition Authority.

Nora Owen

Question:

3 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the staff that have left the Competition Authority in the past year; the number of economists employed by the authority; the length of time each of those has worked there; the other skills available to the authority; the sectors that have been subject to a competition examination in the past three years; if the cement industry has been included in such examinations; and if she will make a statement on the matter. [12282/00 ]

Since the enactment of the Competition (Amendment) Act, 1996 the authorised staff complement in the Competition Authority has increased from 17 to 24 comprising one full time chairman, four full time members, seven professional staff – two legal advisers and five economists – and 12 clerical-administrative staff. Over the past 12 months, the chairman and one member of the authority together with six professional staff – two legal advisers and four economists – resigned to take up alternative employment.

There are two economists employed in the authority at present, one of whom commenced in August and the other in November last. A legal adviser is employed on a contract basis. Competitions are currently under way under the auspices of the Civil Service Commission to fill the professional posts. The conditions for these posts have been improved by offering permanent positions for both economists and legal advisers and a higher salary range in the case of the legal adviser. Of the three serving members of the authority, one is an economist who is widely regarded as a leading authority on competition matters, another has extensive experience in business and the third has extensive experience in administration, particularly in matters of commercial law.

As previously announced, Dr. John Fingleton, a highly respected economist who has specialised in competition matters, will take up appointment as chairman of the authority next month, on 3 May I understand. Dr. Paul Gorecki, who is also an economist with experience both in the academic world and in enforcing competition law will take up appointment as a member of the authority in June. Both are being appointed for the maximum period of five years.

Is the Minister concerned that, within a very short time, the chair, a member and six professional staff left the Competition Authority? Does that not tell her something about the resources that are available to it? Is she aware that if proper resources were given to the authority it could add 1% to our GNP by investigating and rooting out cartels and getting rid of anti-competitive practices? Will she confirm the current position is that the two economists who are available to the Competition Authority have between them a total of 12 months' experience? One has eight months' experience in the Competition Authority and the other has four months' experience. What will the Minister do to make the resources available to the authority to allow it do its work? When will an enforcement officer be appointed in light of the fact that Mr. Massey now has to write letters stating that at the present time the authority is not in a position to pursue the matter due to lack of resources? The letter I received was in reply to a query on co-operative creameries and was dated 14 April, 2000. Even as we speak, the Minister has not done anything about the lack of resources in the Competition Authority.

That is not the case. I am concerned that people have left. The chairman left to go into the private sector. One member left to become the airport's aviation regulator. Five of the six professional staff who left went to other regulators. They stayed in the State sector but went to employment that was much more handsomely remunerated.

Case proved.

That has been an issue. We received Department of Finance sanction recently to increase the salary level and make the staff permanent. I am having an examination to see what further resources the authority needs. The director of enforcement did a terrific job. He informed me in writing the morning after he was informed he was not becoming chairman of the authority that he wished to stand down as enforcement officer. I have not been in a position to assign that office to anyone yet. I want to talk to the chairman when he takes up office next week before doing so. The review group recommended that the enforcement officer should not be a member of the authority but rather a staff member working to the authority and we need to consider whether we should move in that direction which may be desirable. They feel one is involved in the "poacher cum gamekeeper" scenario which puts an enforcement officer in a difficult position. I am concerned at what is being said. Everyone here knows I am committed to competition and ensuring the enforcement powers given to the authority under the 1996 Act can be executed effectively.

In regard to information in the magazine "Competition" recently, stating that the new company law enforcer would have six or seven gardaí assigned to that office, will the Minister say why she has refused the request to assign gardaí specifically to the Competition Authority? Will she take up the matter with the Garda Commissioner immediately so that suitably trained gardaí can be made available to the Competition Authority to carry out investigations?

Deputy Owen is correct. The new company law enforcement office will have gardaí assigned to it. That was in line with the recommendations made in the report of the group that looked at this issue and we are implementing the report almost in its entirety. Part of the study I have established into the authority will look at the issue of its resources and whether gardaí should be assigned. I have an open mind on that. I am determined to ensure we have the resources to enable the authority to do its job effectively. When the chairman and new members join the authority we will be in a better—

The time for this question has expired.

The Minister did not answer my question on whether an examination was carried out into the cement industry.

By the authority?

I am not aware that there was one.

Will the Minister look at that area? There are many allegations made about the cement industry.

We must move on to the next question.

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