Vol. 412 No. 7
16 Mr. Boylan asked the Minister for Industry and Commerce if he will outline the action which he proposes to take to remove the unfair advantage the ESB network of shops has over private electrical traders; and if he will make a statement on the matter.
28 Mr. J. Bruton asked the Minister for Industry and Commerce when he expects his discussions with the Minister for Energy in regard to alleged unfair trading by the ESB in selling electrical goods will be concluded; and when he will make an announcement on the matter.
I propose to take Questions Nos. 16 and 28 together.
My discussions with the Minister for Energy on this matter are ongoing and I do not wish to speculate on when they might be concluded.
That is an amazing answer from the Minister for Industry and Commerce. The Minister may recall that I raised this matter about 12 months ago in the House. At that time he expressed concern and said that he would like to see the playing fields levelled in relation to the advantage the ESB network of shops had over private electrical traders. Does the Minister not accept that the ESB have an unfair advantage over the private electrical traders in the collection of the cost of items sold through a payment system which can be extended over a period of 12, 18 or 24 months? Does he not accept that the finance which is obviously available to the ESB to carry the cost of the equipment sold should be available at the same rate of interest to private traders?
I have given my views on this on a number of occasions and I am sure the Deputy is aware of them. It is a policy matter for the Minister for Energy rather than primarily a competition matter for my Department. I have been urging the Minister for Energy to make a decision in regard to it. I understand, from a conversation I had with him on this topic yesterday, that he expects to be in a position to make a decision on it very quickly. I understand that to be in a week or so.
I think the Minister is passing the buck here, as it is his resposibility. Is the Minister aware that the ESB have an unfair advantage so far as the person who delivers the item bought at an ESB shop is not the person who fits it up, yet the private network — the person who will deliver it — will generally fit it up? There is a hidden cost here which is being taken up by the ESB consumer which is a further unfair advantage and should be looked into by the Minister if he is not already aware of it.
The Deputy overlooks the fact that I had the whole matter investigated a year ago by the Director of Consumer Affairs. Unfortunately, he did not come up with the answer the Deputy would like and which, perhaps, privately I might have liked; he came up with an answer which said it was a matter of public policy and would have to be dealt with by the Department and the Minister concerned. I have sent the report to the Minister for Energy. It is a matter of major significance, but I expect a decision in regard to it very shortly. The Deputy will appreciate that there are a great many people involved in this, both on the private side, who, as I have often said, are being treated unfairly. That is why I am surprised at the director's report — and of course many people in the ESB where the numbers employed are very large.
I am calling on Deputy Hogan for a brief question to be followed by Deputy Allen. The time for questions is almost exhausted.
I thank you for allowing me to bring to the attention of the Minister that he has responsibility under section 5 of the Competition Act in respect of a State monopoly, the ESB, abusing a dominant position vis-à-vis private electrical retailers and that he should take an initiative as soon as possible to resolve the matter.
Under section 5 of the Competition Act, 1991, the primary right of enforcement against the abuse of a dominant position is by one or more of the injured parties. I am sure the electrical retailers association will be considering their position under the Act which has only come into force within the last five or six weeks.
That disposes of questions today.
