Vol. 450 No. 7
2 Mrs. O'Rourke asked the Minister for Enterprise and Employment the action, if any, he proposes to take on reports of excessive rises in retail drink prices in the Dublin area; his views on regulation in the wholesale drink industry; and the advices, informal, interim or otherwise, he has on these issues from the Director of Consumer Affairs. [5648/95]
The Director of Consumer Affairs is finalising his report of his investigation and I do not propose to take any action until I have received and considered it.
In relation to the regulation of the wholesale drinks industry the regulation of trade in all sectors of the economy will be greatly improved by strengthening competition law in line with the policy agreement for Government. I refer specifically to the proposals to give the Competition Authority powers of enforcement and to enable the courts to impose fines on those found to be engaging in anti-competitive activity. In this regard it is my intention to seek to have the Bill enacted at an early date. The director's report may be appropriate to the Authority to follow up with its proposed enforcement powers.
I understand the request to the Director of Consumer Affairs was made over a year and a half ago when he was asked to report to the then Minister on the disparity of retail drink prices in the Dublin area. That seems to be quite a long delay on the part of the director who is normally more expeditious in these matters. Has the Minister received an informal interim report from the Director of Consumer Affairs, bearing in mind that it is now a year and a half since the public was alerted to the fact that Mr. Fagan was visiting pubs in Dublin to ascertain the prices of alcohol? From information given to me, the prices of alcohol in certain pubs are alarmingly varied. Why has there been a delay of a year and a half in producing this report and why will the Minister not provide me with the interim report which the director has given to him?
There is an interim report but it does not indicate any basis for a successful action in regard to alleged collusion or price fixing. Notwithstanding that, there have been some other related practices which the Director of Consumer Affairs believes are worthy of further investigation. That is being undertaken at present. It was the issue of collusion on prices rather than high pricing——
Collusion on pricing would lead to high prices.
It would, but the Deputy referred to variation in prices with some vey high pricing. That would not be the subject of an investigation because high pricing is not an abuse of competition law. However, collusive efforts to fix prices would constitute an abuse of competition law. That matter was investigated and, from what is indicated in the interim report, there are no grounds for taking action.
On the subject of drink prices, will the Minister ask the Director of Consumer Affairs to investigate the alarming prices being charged for bottled water? One can pay from £1 to £2 for a bottle of aerated water in pubs, lounges and bars.
I take note of what the Deputy says. Competition law, for which the director is one of the authorised agents, only allows the investigation of anti-competitive practices, not high pricing. However, if there are grounds for concern about competition rules I will certainly have them examined.
