Dáil Éireann díospóireacht -
Tuesday, 24 Mar 1998

Vol. 488 No. 7

Written Answers. - Milk Supply.

Pat Rabbitte

Ceist:

79 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether an inquiry should be held into a possible monopoly in milk sales in Dublin in view of the information supplied to her relating to abuse of a dominant position including price fixing (details supplied); and if she will make a statement on the matter. [7335/98]

Tánaiste and Minister for Enterprise, Trade and Employment (Miss Harney)

Competition policy in the State is governed by the Competition Act, 1991, and the Competition (Amendment) Act, 1996, and the Competition Authority has the necessary powers to investigate, carry out an inquiry and enforce competition law.

The rules of competition are set out in the Competition Act, 1991, section 4 of which prohibits and makes void all agreements between undertakings, decisions by associations of undertakings and concerted practices which have as their objects or effect the prevention, restriction or distortion of competition in trade in any goods or services in the State or in any part of the State. Section 5 prohibits any abuse of a dominant position.

The Competition (Amendment) Act, 1996, provides for public enforcement of the Competition Acts and also for offences and penalties for breaches of the rules of competition. The independent Competent Authority, which was established under the Competition Act, 1991, now has the power to bring civil and-or criminal proceedings in respect of breaches of the Competition Acts. In the case of criminal proceedings, the 1996 Act provides for fines of up to £3 million or 10 per cent of turnover for firms found in breach of the law, and for imprisonment for individuals. The 1996 Act also created the position of director of competition enforcement in the Competition Authority in order to give effect to the public enforcement provisions.

Since the Competition (Amendment) Act also gave the Competition Authority the power to undertake, on its own initiative, a study and analysis of any practice or method of competition including any alleged anti-competitive structure or practice which appears to it to warrant such investigation or any alleged abuse of a dominant position, I am satisfied that this matter is for determination with the Authority.

I have had correspondence from the person on whose behalf the Deputy has asked this question and that person has been advised of the options which are open in relation to pursuing allegations of breaches of the rules of competition. These are: (i) take civil action under section 6 of the Competition Act, 1991, or (ii) make a complaint to the director of competition enforcement requesting him to investigate alleged breach(s) of competition law. The correspondence has also been brought to the attention of the director of competition enforcement and the Competition Authority.