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Dáil Éireann díospóireacht -
Wednesday, 3 Nov 1999

Vol. 510 No. 1

Other Questions. - Regulatory Processes.

Phil Hogan

Ceist:

14 Mr. Hogan asked the Minister for Public Enterprise if she will clarify her comments on the establishment of a super regulator to oversee individual regulators in the telecommunications, electricity, energy and aviation sectors; the consideration, if any, the Government has given in this regard; the proposals, if any, she has to establish a supervisory position; and, if so, the terms of reference and role of this regulator. [20830/99]

As the Deputy will recollect, I announced in mid-September my proposal to publish a discussion document on governance and accountability arrangements in the regulatory process in relation to the sectors which come within the ambit of my Department. I invited comments from the public in the context of the discussion document and these submissions are now being received. At the request of a number of parties, I have decided to extend the deadline for receipt of submissions until 30 November 1999.

The time is right to launch a discussion on governance and accountability issues, drawing on the experience gained to date. In particular, I intend that the discussion document will address the following aspects of the regulatory process: the relationship between regulators and Ministers, the Oireachtas, the courts and the general public; the responsibility of regulators to look after consumer interests; overlapping jurisdictional issues; enforcement of a regulatory framework; adequacy of current statutory arrangements on the impartiality and transparency of procedures and decision-making processes of regulators; and whether the regulatory authority in each sector should comprise one individual regulator or a regulatory board.

I do not have specific proposals for the establishment of a super regulator. However, I am committed to reviewing the arrangements for the accountability of regulators in the public enterprise sectors.

Is the Minister aware that it was reported during the summer – it may have been the silly season – that she was contemplating the establishment of a super regulator to regulate the regulators? Perhaps she can clarify that. Is she aware of the common perception that many assistant secretaries in her Department are becoming regulators and that the position of super regulator may be seen as a job lined up for the retiring secretary of the Department—

Or the Department of Finance.

—and that this is seen as decentralisation of the Department? As the Minister knows, I have had serious disagreements with the OTDR on a third mobile licence. A question on this matter I tabled to the Minister was ruled out of order. To whom is the director accountable? If she, in my opinion, makes an administrative error or error of judgment – I am not asking the Minister to agree or disagree with that – to whom can one turn? The Minister is accountable to this House. To whom are regulators accountable for their performance?

The Deputy will recall that there was a great deal of discussion about regulators when we dealt with the electricity regulation legislation. I thought about this until the end of August and we then sent out invitations to comment. I did not use the words "super regulator", but it was couched in those terms in the newspapers the following morning. I corrected this in an interview with Geraldine Harney on "Morning Ireland" and stated that it is my belief the country is too small for a super regulator. It is small enough for the proposed number of regulators who will be bumping into one another.

A regulator reports to no one. I hold informal meetings with Etain Doyle—

The Deputy's minute has expired.

—but there is no formal reporting procedure. I will consider the question of overlapping jurisdictions and issues of territory in the review. For example, who is responsible for the parliamentary party and this House and for what is the regulator responsible?

The Minister has gone well over her time. I call Deputy Stagg.

Perhaps Deputy Yates will put in a submission.

I might.

I am sure the Minister will agree the telecommunications regulatory legislation is faulty in so far as the Minister of State guided it through the Dáil. I am sure she will agree the telecommunications regulator is not responsible to anybody and that the legislation needs to be changed. The review of the regulatory position is welcome. It behoves all of us to have an input into that review so we can create a system of regulating competition where the regulator is not the policy maker nor an independent power. I welcome the Minister's decision in that regard.

I agree with the Deputy. There was much discussion during the electricity regulation legislation, which provides for a commission rather than one person. It was a new field for this country and it had to evolve. It has evolved and gaps now need to be filled. The question is clear – who guards the guards? We are responsible. No matter what people say about politicians, we go to the electorate and they vote us in or out. Various mechanisms need to put in place as regards the position of regulator. That is not a reflection on Etain Doyle or anyone else – it must be done before we are overrun with regulators and there are no remaining policy issues for the House to address.

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