Vol. 439 No. 1
9 Mr. Hogan asked the Minister for Transport, Energy and Communications if his attention has been drawn to the persistent use by the ESB of the billing system outside the area of its statutory monopoly which continues to inflict impossible competitive conditions on electrical businesses in the private sector with a consequent loss of employment; and if he will make a statement on the matter.
49 Mr. Bradford asked the Minister for Transport, Energy and Communications his views on the ongoing complaints from electrical retailers that the sale of electrical goods in ESB shops and the use of the billing system in this regard, constitutes unfair competition and is a threat to jobs in many retail outlets.
59 Mr. E. Kenny asked the Minister for Transport, Energy and Communications his views on whether the billing system operated by Bord Soláthair an Leictreachais is discriminatory toward private retailers in the area of electrical goods; and if he will make a statement on the matter.
I propose to take Questions Nos. 9, 49 and 59 together.
These questions are primarily related to competition policy. This is a matter in which I have no function; the Minister for Enterprise and Employment has responsibility for competition policy.
However, by way of information, I would refer the Deputy to the findings of the Director of Consumer Affairs, who reported on this matter to the then Minister for Industry and Commerce in 1990. The director found that the ESB was not operating unfairly to the detriment of its competitors in using the billing system as a means of collecting repayments on credit purchases of retail goods.
In view of the director's findings, the ESB's use of the billing system in their retailing activities is not currently under consideration. If further independent examination of the matter by the relevant competition agencies were to find to the contrary, then the matter could be addressed in that context.
I consider that measures already introduced, including a new invoicing system and confining the promotion of electrical appliance sale to three billing periods annually, represent a reasonable balance between the needs of consumers, who appear satisfied with the present arrangements, and other appliance retailers.
The Minister's reply will come as a great shock to many small electrical retailers. It is not good enough to say that the ESB does not have a monopoly on advertising through the billing system. It is not unfair that small businesses who are paying their taxes and finding it difficult to survive should subvent the body that is trying to put them out of business? The Minister is standing over that. Is it not time he considered the matter in detail?
The Director——
Never mind the director. I am asking the Minister.
Deputy Boylan has asked some pertinent questions and he should be good enough to listen to the Minister's reply.
That is difficult.
The Director of Consumer Affairs examined the matter and if the Deputy wishes to question his independence he should take the matter up with him.
The buck stops with the Minister.
The ESB has been involved in the sale of retail appliances for the past 60 years. Should any further independent examination of the position provide evidence to the contrary under the competition Acts, that can be dealt with. I am not in charge of competition and I have no function in that regard. A study was carried out in 1990 and its findings published. Should an independent examination in the future come up with findings to the contrary, the matter can be dealt with in the context to which I referred.
The Minister should take an active interest in the affairs of small retailers nationally. To date, he has ignored their plight. Will the Minister not agree that there is concern among many retailers and that it might be worthwhile for his Department, on receiving such evidence, to contact the ESB and the Director of Consumer Affairs about the lack of competition, as small retailers see it? He should at least try to address current difficulties in this area.
The purpose of Question Time is to impart information based on the question tabled. I have given a full answer to the question. If there are concerns about how this practice is impacting on other retailers, that matter can be taken up with the Minister for Enterprise and Employment. The small business task force received a number of representations in this regard. The Minister of State at the Department of Enterprise and Employment, Deputy Brennan, contacted me in that regard and I subsequently passed those representations to the ESB. The Director of Consumer Affairs, who has consistently shown his independence, examined this matter without the influence of any vested interests and arrived at conclusions. The Deputy will be aware that it has been suggested that an amendment to the Competition Act will allow people to submit complaints to the relevant competition authorities. The basis of those complaints may allow those authorities to examine the matter further, for example, if further evidence is provided which was not available in 1990. That is the way this matter should proceed.
(Carlow-Kilkenny): As a sensible Member of the House, will the Minister accept that a small electric shop in Carlow, Tullamore or Galway cannot compete with a monopoly, such as the ESB who have many outlets? He should have a personal view as to whether that is fair.
In reply to another sensible Member of the House, I am just as aware of complaints from the electrical industry in Offaly as he is of those in Carlow. The ESB does not have a monopoly in this area because electrical shops are also selling white and brown goods. I am aware of the nature of their complaints. I have told the House how best they can proceed with their complaints. Up until 1990 the basis of their complaints was not upheld by the Director of Consumer Affairs. If subsequent information is presented, they should proceed on that basis. Proposed amendments to the Competition Act announced by the responsible Minister may enable them to proceed with a greater degree of success than in the past.
