Vol. 535 No. 3
3 Mr. Flanagan asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on a recently published report of the OECD recommending significant regulatory reform here; if she envisages any legislative reform programme consequent on the recommendations contained in this report; and if she will make a statement on the matter. [12591/01]
I welcome the OECD report on regulatory reform published last week and I share its conclusions by and large. I particularly welcome the OECD's emphasis that the interest of the consumer has to be at the heart of regulation. The report contains some important messages, including reminding us of action which needs to be taken at a time when we are planning to build on the successes already achieved in the economy.
In general terms the report comments favourably on the many positive aspects of Ireland's regulatory regime, including the openness of our markets to international trade and progress made in the fields of competition law, aviation and telecommunications regulation. It also highlights areas where further progress must be made and the Government at its meeting last week adopted a number of measures to address these.
The measures include preparation of a major national policy statement on regulatory reform, the establishment of a high level group on regulation to oversee implementation of Ireland's response to the OECD report, the development of a new mechanism by which Government Departments and public bodies will be subjected to regulatory impact assessment for any new proposals or regulations being made, requesting the Competition Authority to initiate a comprehensive study of the professional services sector by which Government Departments and public bodies will be subjected to regulatory impact assessment on any proposals or regulations being made. The Competition Authority will be asked to initiate a comprehensive study of the professional services sector.
I am very impressed.
I hope I have the Deputy's support. The Government also decided to request the Commission on Liquor Licensing to produce further interim reports and initiated an acceleration of the review of the Health (Community Pharmacy Contractor Agreement) Regulations governing the award of general medical service contracts to pharmacies. I am pleased to note that the Competition Authority has already launched a consultation process for a study of competition in a number of professions under the competition Acts.
Can I ask the Taoiseach—
Deputy Harney is not the Taoiseach yet.
Fair play to Deputy Flanagan, his words may be prophetic.
On the statement of the Minister for Enterprise, Trade and Employment last week, following the publication of the OECD report, that she looked forward to having a gin and tonic in a restaurant, what does she mean by deregulation? What, in essence, will deregulation allow? Does she intend to have a gin and tonic in Harry Ramsden's in her constituency or in one of the many McDonald's franchise restaurants around the country?
When people talk about deregulation, it is my understanding that they mean different things. Can the Minister spell out exactly what she proposes in the context of deregulation legislation which will be enacted within a year? What will that legislation mean for the licensed intoxicating liquor trade?
I doubt I mentioned gin and tonic as I do not think I ever had such a drink in my life, it is not a drink I favour. I look forward to strolling a few yards from Leinster House to have a beer without having to go to a pub. In most European cities, including virtually every city of which I am aware, one can walk into a regular café to have a beer. That is not the case in Ireland, however, as pub culture dominates. That is no longer acceptable for a modern capital like Dublin.
This problem can be found throughout the country, especially in large urban areas. Deputy Rabbitte is probably more familiar than am I with the fact that there are only about five or six pubs in Tallaght. I estimate that there are far more pubs in virtually every town in Deputy Flanagan's constituency. We have operated under archaic legislation in this area and others, which has had a negative impact on prices and consumer choice. We need to change the drink culture as much as the outlets in which alcoholic drink is available. The most important thing is that we have reasonable laws which enforce competition, increase consumer choice and put the consumer first.
I accept that the social dimension of drinking is a huge problem in Ireland and results from the culture and history of drink here. Change must be brought about by enforcing the law in relation to under age drinking, perhaps by introducing identity cards, but that is a separate question. It is not in our interest as a nation to maintain the regime that prevails at the moment.
One of the arguments put forward in the OECD report and which was latched on to by both the Taoiseach and the Tánaiste was that deregulation and liberalisation would reduce prices. That argument is not necessarily valid, however, as is evident by looking at the taxi issue. Only last week, fares were increased by 15%, so nobody can say taxi prices have come down since deregulation. The opposite is the case. There is no evidence that a free-for-all in the drinks market would lead to lower prices. What experience or authority did the Minister for Enterprise, Trade and Employment draw upon to indicate as vociferously as she did, that prices will be reduced?
If there is an element of liberalisation and deregulation needed within the licensed business, it is exclusively within the east coast metropolitan area of Dublin, particularly her own constituency as was mentioned. There is no need for deregulation or a free-for-all, as the regulation of intoxicating liquor was originally put in place due to the dangers of abusing the substance.
Licensing those that can sell alcohol and imposing appropriate planning controls is certainly important. Before I answer the Deputy's question about what information I called on, in making this decision, I should say that taxi fares are not deregulated. We do not have a free market in fares as they are regulated, which is a problem. A glance at sectors like air travel, other means of transport and telecommunications shows that increased service and better value for money result from genuine competition. If £2 million is paid for a pub, the consumers of the alcohol will end up paying more, which cannot be justified. There is an unsatisfactory situation in Dublin and other large urban areas. This situation must be dealt with in a sensible way and I believe that it will be.
