I welcome the Competition Authority's annual report for 2003, which has been laid before the Houses of the Oireachtas and which is currently being examined. The report demonstrates the authority's wide range of activities in the areas of competition law enforcement, controlling mergers and acquisitions, undertaking studies and promoting competition generally.
Regarding the authority's expectation to prosecute one cartel per year, I understand this takes account of the authority's experience to date in investigating cartels both at national and international level. Cartels are conspiratorial by nature, making them difficult to detect and prosecute successfully. It should be borne in mind, therefore, that undertaking the prosecution of a cartel case is an arduous and time-consuming process which involves the investment of significant legal and economic resources.
For example, I am aware that the Director of Public Prosecutions has commenced the prosecution of a particular cartel, the investigation of which began more than two years ago. More than 50 summonses have been issued in 11 District Courts to companies and individuals and the authority does not view the number of defendants in this case or the length of time that it has taken to get the case to court as unusual in cartel investigations.
Achieving a successful outcome to any prosecution brought is of greater importance than the number of prosecutions initiated. As we have seen from developments in other countries, a single successful prosecution of unlawful business activity can have a very wholesome effect on potential wrongdoing by others.
In view of the harm caused by cartels to consumers, the authority has identified the pursuit of cartels as a priority and to this end it introduced a cartel immunity programme in December 2001 in conjunction with the Director of Public Prosecutions. I understand the programme has been operating successfully.
Furthermore, the authority's law enforcement role is not just confined to cartel investigations. I note that the authority's annual report for 2003 shows a considerable increase in overall enforcement of competition law compared with previous years. Last year was the first in which the authority operated with the full range of its current powers and functions under the Competition Act 2002. The report shows that the authority has made a good start across the whole range of its responsibilities and I look forward to further success in the years ahead.