Dáil Éireann Debate, Thursday - 16 December 2004
33 Mr. Morgan asked the Minister for Enterprise, Trade and Employment the studies being undertaken by the Competition Authority to deal with issues of regulation; when each study is due to be completed; and if he will make a statement on the matter. [33552/04]
View answer76 Caoimhghín Ó Caoláin asked the Minister for Enterprise, Trade and Employment the position regarding the professions study being carried out by the Competition Authority; when this study will be completed; if he has satisfied himself with the progress being made; and if he will make a statement on the matter. [33554/04]
View answerI propose to take Questions Nos. 33 and 76 together.
The studies by the Competition Authority into the banking, insurance and professional services markets are progressing. The authority published its final report on competition in the engineering profession on 1 December 2004 and concluded that the current regulatory regime in that profession essentially facilitates competition. I expect to receive the final report in relation to architects by March 2005.
The studies of other professions across the medical, legal and construction sectors are ongoing and the reports will be released during 2005. In relation to veterinary surgeons, I understand that a consultation paper and initial recommendations will be published in the first quarter of 2005 and the final report in the second half of the year.
The authority's initial recommendations and consultation paper in respect of the two legal professions — solicitors and barristers — will be published in January and the final report and recommendations will be published later in 2005. Initial recommendations and consultation papers in respect of each of the three remaining medical professions will be published in the second half of 2005.
The authority published a report on the banking sector, prepared in conjunction with economic consultants LECG, on Tuesday last, 14 December 2004. It contains a comprehensive analysis of two key markets — personal current accounts and loans to small and medium sized enterprises. The report makes 40 recommendations aimed at enhancing competition between banks for the benefit of both personal banking customers and small and medium enterprises. The authority has now invited interested parties to submit comments on the remedies to the competition issues outlined in the report by 14 February 2005 after which it will publish a final report and recommendations.
The authority, in conjunction with my Department, has also conducted a study of competition issues in the non-life insurance market. Research on barriers to entry and rivalry in motor, employers' liability and public liability insurance has been carried out and an initial report containing preliminary results of the research was published in February 2004. The authority has completed a consultation exercise with interested parties and is concluding its final report which will be published in January 2005.
The authority has advised me that the studies have taken longer to complete than anticipated due to a number of factors, not least the extensive consultation process involved. Progress on the professions study in particular has also been hampered by the need to divert resources to deal the high level of merger activity. However, I am currently arranging to provide the authority with additional resources for processing merger notifications.
