Vol. 460 No. 5
5 Kathleen Lynch asked the Minister for Enterprise and Employment if his attention has been drawn to a recent paper presented to the Statistical Society of Ireland by members of the Competition Authority; if he is considering its recommendations with regard to regulating competition in the energy and telecommunications sectors; and if he will make a statement on the matter. [1584/96]
I am aware of the recent paper — Competition and Regulatory Reform in Public Utility Industries: Issues and Prospects presented to the Statistical Society of Ireland by a member of the Competition Authority and the legal adviser to the Authority in their personal capacities. Regulation of the energy and telecommunications sectors are matters within the area of responsibility of the Minister for Transport, Energy and Communications.
In relation to my own responsibilities, I should say the Competition Act, 1991, applies to all sectors of industry including these sectors mentioned in the question and, therefore, all firms operating therein need to comply with the terms of the Act. The Deputy will be aware of the new provisions regarding enforcement of competition policy contained in the Competition (Amendment) Bill which completed Committee Stage last week.
I thank the Minister for his reply. These sectors, which since their inception have given an exceptionally high standard of service to our people, are concerned about the unavoidable competition in this area with which they must cope. Will the Minister indicate when an independent regulator will be appointed to ensure that the interests of existing service providers and new entrants to the electricity, gas and telecommunication services loop are not only safeguarded but that service providers are treated equally? The Minister for Transport, Energy and Communications said one would be appointed within the year. What safeguards will be put in place to protect the interests of existing service providers?
These questions would be more properly directed to the Minister for Transport, Energy and Communications. He has proposals to establish independent regulation of this sector. I understand he is preparing legislation which will come before the House in due course and that an interim regulation system will be put in place. It will deal with a range of issues to ensure fair competition in the market. The Deputy would have to table a question to the Minister for Transport, Energy and Communications to get the information she requires.
Given that the Minister has responsibility for the area of competition governed by EU and national law, what guarantees can he give existing service providers that new entrants to the market, while being treated fairly, will not be allowed to cherry-pick?
This matter does not fall strictly within my remit. It is covered under EU directives. I understand funding will be allowed for so-called universal service obligations from competitors within the sector, but care will be taken to ensure that new entrants are not excessively burdened and universal service obligations will be distributed in a fair and transparent manner.
Is the Minister aware that most of what he is saying is academic, that his Government have concluded a deal with the ESB unions whereby all foreseeable requirements for new generating capacity will be put in place under ESB ownership for the sole purpose of preventing competition in energy generation? Is he aware there is a significant danger of a complaint being made to the Competition Directorate of the European Union in relation to this specific issue, the Irish Government, behind the scenes, having decided to emasculate competition in the electricity market? Would it not have been more frank to have told the House that a deal has been done behind the scenes, whereby competition in generating electricity here has been postponed for at least five years because the ESB has been given the go-ahead to build two new generating stations and, in any event, the State will be providing a third, peat-fired one in the midlands?
Let us not burden the Minister with responsibilities clearly not his.
Absolutely. I will reiterate what I said to Deputy Lynch. The ESB and all other State companies are amenable to Irish competition law which stipulates that it is illegal to abuse a dominant position or to engage in anti-competitive agreements so that any such breaches would be in contravention of competition law. Under the legislation I hope to put through the House, enforcement powers under competition law will be extended to the Competition Authority to ensure its more prompt response on issues of anti-competitive behaviour.
