Dáil Éireann díospóireacht -
Thursday, 23 Oct 2003

Vol. 573 No. 2

Other Questions. - Competition Authority.

Phil Hogan

Ceist:

10 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to a recent investigation by the monopolies division of the Competition Authority into the pedigree dog market; the outcome of that investigation; her views on whether the use of resources by the Competition Authority for the investigation of such a matter constitutes an appropriate and well judged use of resources, in the context of other clear examples of anti-competitive and monopolistic behaviour in the economy; if she will issue guidelines to the Competition Authority to ensure that its resources are used effectively in a focused and cost effective manner; and if she will make a statement on the matter. [24400/03]

Ms Harney:

I understand that the Competition Authority received a complaint about the pedigree dog market and that the authority investigated the complaint under the Competition Act 2002. The authority is an independent statutory body with responsibility for enforcement of competition law in the State and it would not be appropriate for me to comment further on the matter. With regard to the use of its resources, the chairperson of the authority is accountable directly to the public accounts committee under section 38 of the Competition Act 2002.

Mr. Hogan:

With all due respect to the Minister, this is the most ridiculous reply I could have received, on a matter which we both know represents the most frivolous expenditure of resources by the Competition Authority into investigating a potential monopoly in the pedigree dog market. I asked the Minister if she considered this an appropriate use of resources at a time when there are more important areas where there is a lack of competition in the market, such as legal, banking and waste collection services. Two years ago Offaly County Council asked the Competition Authority—

An Ceann Comhairle:

A question please, Deputy.

Mr. Hogan:

I am coming to it.

Mr. Howlin:

Do not stop him in his bark.

Mr. Hogan:

—to investigate the potential cartel in waste collection but it did not receive any reply. Does the Minister accept that there are greater priories for the deployment of the Competition Authority's resources than investigating the possibility of an Irish Kennel Club monopoly?

Ms Harney:

The authority must investigate all complaints brought to its attention. I do not know the extent of the resources devoted to this investigation. I read Mr. Whittaker's article, as I am sure did the Deputy. It is written in colourful language so I can see why it inspired the question. In deciding whether to carry out an investigation, the authority has to decide the size of the market, the economic impact of the possible breaches of company law, the quality of the evidence, the precedent value and the effect it may have in deterring others.

The authority is currently involved in many serious investigations. This is only one of a number of investigations it has carried out. It secured agreement from the Kennel Club which promised not to deter, penalise or discipline its members if they took part as judges in events sponsored by other doggie groups. It may be that this commitment was made quickly and easily.

Mr. Hogan:

While it might appear to be a frivolous matter, the decision is unlikely to have earth shattering results for the monopolistic nature of the pedigree dog market. The Competition Authority could better investigate matters which are more deserving of the deployment of its resources.

Can the Minister justify this investigation by the Competition Authority? She is the policy maker with political responsibility to the Oireachtas for the manner in which the authority deploys its resources. In this time of scarcity there are more pressing issues that require to be investigated due to allegations of monopolistic activities. At a time when the cost base of business and retailing is increasing every day, there are other matters which require more urgent investigation than a rival organisation of the Irish Kennel Club having a go at it. Will the Minister undertake to direct the Competition Authority to take a more focused and strategic approach in the deployment of its resources? She needs to provide leadership regarding the areas that require immediate investigation into anti-monopolistic activities.

Ms Harney:

The legislation was passed by the Oireachtas and after that it is a matter for the authority to implement it. It would be a dangerous precedent for me to tell it which matters to investigate. Funny and all as this matter may appear to be – and there is a humorous side to it – it is best left to the authority, which is independent in its functions and operations. I am sure the chairman will read with great interest, as I know he always does, the contributions of Deputies. We have a terrific chairman who never leaves a stone unturned in observing what is said about the authority.

Mr. Hogan:

He says a great deal himself.

Ms Harney:

He does, and says it very well too.