No, the issue for us is not whether the regulator is doing its job but whether we believe there is a violation of the Competition Acts. Where there is such a violation, be it in the telecommunications industry, the energy or aviation markets or the taxi industry, we must act and use our powers. Obviously, there is an overlap of jurisdiction in respect of sectoral regulators in that they have separate tools and statutory instruments and can put in place price controls. All we can do is initiate proceedings and go to court. It may be that we are trying to achieve the same ends. It is important that we co-operate with them, that we do not waste State resources and that we are not at odds with them. We have co-operation agreements with many of the sectoral regulators. For example, not only do we have such an agreement with ComReg but we also have a good working relationship with it. We exchange information and consult it. Where cases arise, we consult on which organisation is best suited to deal with them. However, there is no exemption from the competition rules. Also, we are not the regulator of the regulators.
Proposals have been made in regard to the amalgamation of all the regulators, the Competition Authority, the National Consumer Agency and so on. I do not have any tremendous issues of principle in regard to whether the amalgamation of these agencies into one would be good or bad. There are important issues involved in terms of the coherence of the entire regulatory system. ComReg was set up for a particular purpose. The regulator for the aviation industry regulates prices in a different way, as does the CER. We have an entirely different statutory remit. For me, it is not a question of amalgamating all the regulators but rather of ensuring there is a coherent approach in all markets, which is slightly different. We are required to react to violations of the Competition Acts, even if there is a sectoral regulator involved.
Matters such as the impact of deregulation, price competition and what happens in terms of the increase in costs — in particular, the increase in unavoidable costs — are ones for the regulator. This is an industry in which there is a price cap. It is an area wherein it is appropriate to have price control. The reason for this is that consumers are in a vulnerable position. When people get into a taxi, they do not necessarily know the driver or may never have seen him or her before and, more importantly, may never see him or her again. In those circumstances, price control is appropriate. Also, it is appropriate that prices are controlled by an independent regulator which should in setting maximum prices take into account unavoidable costs that increase. In terms of the exact mechanism to be used, this is an issue best addressed by the regulator.
A good point was raised about the uniqueness of the industry and ease of entry into it and the impact this would have on professional standards. Given the ease of entry into the industry, it is correct to say standards may be driven lower and lower. When this problem first came to light, the Competition Authority pointed out that with deregulation, it was important to put in place quality controls. As I said in my opening statement, the quality controls which the taxi regulator is seeking to introduce in the next 18 months to two years are impressive. They will go a substantial way towards raising the standards of the industry, making it more professional, and to relieving the pressure which would inevitably arise in driving down standards. This is the way forward.
The dental profession is facing the opposite problem. As the profession has developed in the market, the pressure has been not so much on standards but on prices owing to a number of restrictions in respect of competition. People are voting with their feet and travelling to Northern Ireland and Hungary for dental treatment. We now find that dentists from eastern European countries are coming here. Our dental report indicated that in the last year for which we had figures, namely, 2006, the majority of new entrants into the dental profession in Ireland had been trained outside the country. This was due to restrictions on entry which were driving up prices. These problems are mirror images of each other.
The way forward to protect the professionals in the business and safeguard consumer interests is to raise standards in the industry. I am pleased to note that the regulator has a programme in place to do this.