I confirm Fine Gael support for this Bill, large sections of which seem to be extracts from a Fine Gael policy document. Despite what Deputy Roche has said about drafting and costing problems, it is impossible to justify the hostile reaction to this realistic and necessary measure. We have been treated in recent days to three public tantrums relating to this issue. First we had the bluff and bluster of the Minister on a radio programme on Saturday morning. Subsequently a statement was issued by an anonymous Government spokesperson and today we had the Government statement that they would not tolerate legislation emanating from Opposition parties. We will not be cowed or bludgeoned into submission. The Government are adopting a silly and selfish approach. Surely proper legislation containing measures for the betterment of society should be considered seriously and not dismissed because of the quarter from which it might come.
It is hard to believe that this minority Fianna Fáil Government would oppose a Bill which is in line with Government policy on 1992. I would remind Fianna Fáil that consensus works both ways and there is a responsibility on the Government in this area. Are Fianna Fáil irresponsibly looking for an excuse to go to the people? An issue such as this Bill is a disgraceful excuse and could not justify such action. How can a Government whose Ministers, including the Minister of State, Deputy Séamus Brennan, continually preach the marketing message that our domestic market is now Europe, justify at the same time our current restrictive practices legislation? When modern Irish industry was in its infancy the Fianna Fáil protectionist policies of the thirties and forties were the norm. This, perhaps, helped create an Irish sentiment that competition in the real sense should not become an issue. Competition is now a reality. We cannot afford an outmoded economy and we cannot wait to implement changes in structure.
The Government allocate resources for the promotion of competitive manufacturing industry through such organisations as the IDA, SFADCo, Udarás na Gaeltachta, CTT, CBF, etc, yet no State organisation is given the task of assisting and promoting competitive practices in other professions. With the evolvement of the internal market we cannot afford delays which reduce our competitive edge. We may soon be the only island nation in Europe, but this will not protect our economy.
The current legislation introduced by the Fianna Fáil Governments of 1972 and 1987 is too cumbersome and lacks realism. This Government have failed to address the issue of restrictive practices. Why is there a refusal by Fianna Fáil to take action dealing with restrictive practices? No significant study of enterprise has been published during any of Fianna Fáil's recent terms of office. The only studies in this area were published while Fine Gael were in office. It must be said that studies on enterprise published through the semi-State sector do not address the issue of restrictive practices. Three studies published in recent years virtually ignore the area of restrictive practices, yet they are being used as textbooks references by over 4,000 current marketing students. The studies to which I refer are Venture Initiation in Irish Society and Enterprise: the Irish Approach, both published by Joyce O'Connor in 1983, and Education for Enterprise — an Irish Perspective, published by John A. Murray in 1986. All these marketing students can see from current State publications and studies is an outmoded policy. The time has come — not for publishing more reports — but for taking effective action. The continuation of restrictive practices on the part of the professions, including restrictions on advertising and scale fees, are an outmoded source of frustration. Cohesive legislation is urgently required.
Current legislation means that the process of eradication of abuse is too narrow and this has been pointed out by previous speakers who referred to the prolonged procedure which takes place before this process is completed. A seal would cross Ireland on dry land quicker than action taken in this area. Uniform legislation on all trade practices is required. Practitioners and consumers must have access to information and the right to knowledge.
This Bill attempts to achieve the required measures to redress the situation, but it only does so partially. Under the Coalition Government the then Minister for Industry and Commerce requested the Fair Trade Commission in April 1984 to undertake a wide ranging study into the rendering of professional and analogous services. The investigation looked at two groupings, medical and non-medical. The commission have reported on advertising restrictions and scale of fees in accountancy and engineering professions. The report of the commission needs to be addressed by a more elaborate Bill. Much of this Bill is premature prior to having the results of the work of the Fair Trade Commission.
The commission are currently investigating the architectural and legal professions and this format will probably be used for all remaining investigations. Therefore, I suggest that the Bill should make an allowance for these reports, although I appreciate that time is of the essence in the 1992 race. The commission feel strongly that a supply of professional services is desirable in the public interest, leading to higher quality at lower prices, increased choice, innovative and more efficient forms of organisation and service. Fine Gael agree with this general approach.
We are about to face an enormous change for the professions, the right to freely establish in any country; technological development and greater consumer awareness will change the whole economic climate. More open and efficient professional services will be demanded. In 1992 it is estimated that the current number of companies will be halved. This will occur through economies of scale and standardisation.
We cannot compete on economies of scale in Ireland, our largest Co-operative, Kerry Group plc, would not rank as large in Europe, Larry Goodman may be the beef baron of Europe, but very few Irish companies can match anything the size of our European competitors. We must, therefore, rely also on efficiency and quality of service and products. Current restrictive practice legislation is against such development. Without a competitive environment within our own business sectors we will not survive. The competitive provisions of the European Community are being increasingly manifested and currently the international, not domestic trade, is subject to the application of Community competition laws. Under the Treaty of Rome, the Community is formally committed to the elimination of anti-competitive behaviour which is expressed in Articles 85 and 86 of the Treaty of Rome. Article 85 relates to anti-competitive behaviour by two or more undertakings and prohibits as incompatible with the Common Market all agreements between undertakings and concerned practices which may affect trade between member states and which have as their object or effect the prevention, restriction or distortion of competition within the Community. This relates to price fixing between competitors, agreement on market shares, production quotas etc.
Article 86 is aimed at preventing abuses by firms in a dominant market position when an effect on inter-state trade is involved. Community law covers all agreements or practices which are capable of threatening the freedom of inter-state trade between members in a manner which could harm the objectives of the Single European Act, but conduct affecting member states only is governed by national legal order. We must as a nation do something to restructure our restrictive practices. This Bill at least tries to address this.
Consumer protection policy needs to be addressed but this Bill is only the tip of the iceberg.
We entered the European Community in 1973 to gain access to 320 million consumers and rid ourselves of the isolation which affected our economy for a generation. Our ability to go to the European marketplace, unfettered by the hitherto restrictive practices which hampered our growth potential over the years, has been the cornerstone of our unprecedented economic growth in the seventies and eighties.
Articles 85 and 86 of the Treaty of Rome govern business dealings between entities in the Community and ensure that the prejudices imposed by national boundries will not be used to the detriment of one European in his dealings with another. They do not protect an individual or entity within the borders of a country whose desire to earn a just living can be severly dented by the unscrupulous attitude of those whose interests are governed by considerations other than the common good.
We in Fine Gael have always believed that what is good for the child is good for the nurse and we find the reluctance of the Government to allow provisions which will afford Articles 85 and 86 type protection to individuals or companies in Ireland doing business with each other inconsistent with the dictates of reason.
The Enterprise (Competition and Consumer Protection) Bill, 1989, proposed by the Progressive Democrats expresses our thinking on the medicine which is required to ensure that enterprise will not be scuppered by unscrupulous monopolies whose interests are inimical to enterprise.
The arguments expressed by the Government speakers are not logical and do not impress me. The Government are looking for any excuse to scupper the Bill which, while it has limitations and does not go far enough, deserves full consideration. It will get the support of the Fine Gael Members of the House.