Vol. 551 No. 4
9 Mr. Flanagan asked the Minister for Public Enterprise her views on the lack of accountability in relation to a number of existing regulators such as the Director of Telecommunications Regulation; and her plans to change this. [9348/02]
I published my policy framework for the regulation of the communications, energy and transport sectors, Governance and Accountability in the Regulatory Process, in March 2000. As the title indicates, that policy framework embraces the governance and the accountability aspects of regulation for the economic sectors within the scope of my Department.
In the case of the Office of the Director of Telecommunications Regulation, to which the Deputy refers specifically, I would point out that, the Telecommunications (Miscellaneous Provisions) Act, 1996, is to be updated by the Communications Regulation Bill, 2002. Under the provisions of the 2002 Bill, the Office of the Director of Telecommunications Regulation will be replaced with a commission for communications regulation. Under the new measures the commission will be accountable to committees of the Oireachtas, will present its strategy statement to the Minister and to such committees of either or both Houses of the Oireachtas as the Minister may, from time to time direct, and adopt a code of financial management and the publication of the code.
As regards regulation in the other sectors for which I have responsibility, my policy, as articulated in Governance and Accountability in the Regulatory Process, is now being implemented through the various legislative documents that my Department has been bringing forward for the regulation of the individual sectors. It is interesting to note that the OECD in its recent document on regulation and governance quoted from that policy document which I published in March 2000.
Will the Minister assure the House, when reviewing the matter of regulation gener ally, that the system as established by the Government consists mainly of existing regulators? Will she agree it would be desirable to get some agencies from outside the State, who have experience of being regulated, to examine the system of regulation rather than regulators looking at how they should regulate which, effectively, is what the review of regulation consists of.
It does not consist mainly of that. The policy document certainly did not consist of that. The OECD issued a strong policy document, which was launched by the Taoiseach, the Tánaiste and I about a month ago, in which it commented on regulation within all the countries it had studied. In it, it mentioned, with some appraise, the policy document which I published in March 2000. I agree that a shape needs to be put on regulators. I hope the telecommunications regulation Bill, which has passed through the Seanad, will be taken in the House on 16 or 17 April. I hope we can reach some agreement on it. Deputy Stagg and I have often discussed the whole issue of regulation which is required by the EU. Deputy Stagg worked on telecommunications regulation while I worked on regulation in the aviation industry.
The time for dealing with this question is up.
(Mayo): Does the Minister accept that we are over-regulating? In most other European countries regulation applies only to those who have more than 20% of the market, in other words, significant market providers. In Ireland, certainly from the point of view of the ODTR, the smallest entrant into the market is being regulated. Therefore, the kind of competition that should take place at the bottom end of the market with the new entrants being allowed scope to compete among themselves is not happening.
In comparison with other European countries Ireland has been slower to introduce regulators. Regulation is required under an EU directive and is introduced here by statutory regulation. While it might be said politicians interfere too much, under the system of regulation they have no role. One wonders which is the better method. However, regulation is beginning to balance out in various areas in which it is evident.
Does the Minister agree regulation is a transfer of authority from this House to people outside and that the only people of whom they are independent are the elected members of the House?
I agree the transfer of powers from the Houses of the Oireachtas to a regulator or a commission is the transfer of powers of direct involvement. On the other hand, some of those areas have become so complex and weighted down with huge financial considerations. We have been particularly lucky here with the system of regulation and certainly in the areas of telecommunications, electricity and aviation very fine people are running them.
