Dáil Éireann Debate, Thursday - 13 May 2004
1 Mr. O’Dowd asked the Tánaiste and Minister for Enterprise, Trade and Employment the details of the work programme of the consumer consultative panel; the efforts that the panel has taken to be inclusive in its consideration of issues of relevance to consumers; and if she will make a statement on the matter. [14058/04]
Amharc ar fhreagraThe role of the consumer strategy group, which I established this March, is to advise and make recommendations for the development of a national consumer policy strategy which will: provide consumers with the knowledge, information and confidence to be demanding of quality, service and value; ensure consumers are well informed of their rights and have effective and speedy means of redress in the event that those rights are denied; give consumers a powerful voice and effective representation and input in the development of policy proposals at national and local level; ensure the views of consumers are heard and taken into account in national debate on relevant business, trade and social policy issues; and promote among product and service providers best practice in the delivery of quality customer service and value for money and an appreciation of the contribution satisfied consumers make to the growth and development of business.
The composition of the group reflects a wide range of experience and expertise and this should facilitate comprehensive consideration of all relevant matters affecting the interests of consumers. The group is due to produce a final report by the end of 2004, but it may also produce such interim reports to me as it considers appropriate. I see the establishment of this group as a significant initiative designed to improve and promote consumer rights in Ireland. I want to encourage and see develop in Ireland a culture where consumers are confident and insistent in demanding value and quality at all times.
Does the Minister agree, because it will take nine months from establishment of the committee to the production of a report, that action needs to be taken in the interim, particularly with regard to consumer affairs? Does she also agree that the rip-off culture in Ireland is worsening? The Director of Consumer Affairs reported in her annual report of 2003 that the number of complaints has increased by more than 7,000 in a period of one year from the previous level of 35,000. Does the Minister agree that it is time for her to act directly on the recommendations of the director's report?
The director specifically requested action to be taken to update consumer protection, particularly regarding fines for those who fail to comply with consumer legislation. The current fine is €127 and the recommendation is that this should be increased to at least €3,000. Will it take nine months for the Minister to take that action? Will the Minister also agree that the limit in the small claims court, to which the director also referred and which is set at €1,270, should be changed immediately? What steps is she going to take to address the issue of rip-off Ireland and the specific issues brought to her attention by the Director of Consumer Affairs before the group's report is produced?
As the Deputy is aware, the rate of inflation has now fallen to 1.3%, which is welcome. That has happened because consumers have become more active, albeit slowly. They are now more likely to make complaints than they would have been a short time ago. That is also the reason the director receives more queries and complaints. The advertising campaign she organised in the latter half of last year also had the effect of increasing activity in her office and of making people more aware of its importance.
The consolidation of the legislation to update the fines is under way, separate from the establishment of this group. Next weekend, a European Council agenda will raise two significant proposals relating to consumer affairs matters which will have to be incorporated in Irish law. In conjunction with all that, we will ensure there is a substantial increase in the fines. It is a matter for the Attorney General to advise how we proceed on fines and summary convictions. There are limits in that regard.
The small claims court does not come under my responsibility. However, I share the view expressed by the director and others that we need to increase its jurisdiction if possible. When the Government, some time ago, agreed to increase the jurisdiction of the Circuit Court, a view was taken that this would encourage awards to go to the new limit which would have the effect of driving up costs. There are downsides as well as upsides with regard to increasing the jurisdiction of the court in so far as financial awards are concerned. We must be careful before we move willy nilly to make a decision in a particular direction. There is some merit in increasing the jurisdiction to some degree as the current limit is extraordinarily small in today's terms.
The Minister, while telling us what will happen, is not telling us when she will introduce the change. When will she, as the Minister responsible, insist that the fines increase from €127 to at least €3,000? It is not good enough to say that the recommendation is to increase the limit in the small claims court. That comes after due consideration by the Director of Consumer Affairs and her 60 members of staff. It is not just a figure plucked from the air but is a real recommendation to the Minister. What is she going to do about it? At the moment she appears to be doing nothing other than talking about it.
Will the Minister investigate the other issue raised in the report of the consumers' association, namely, unexplained price differences? The Minister referred to them recently when she spoke about the difference in prices in some countries as opposed to those in Ireland and said there is an unaccountable difference between them. What is she doing to make the companies involved accountable? I put it to her that if she buys a computer or camera in the United States, she pays a dollar price which is far less than the euro price. What is she going to do about that?
What is the Minister going to do about mobile phone charges? The consumer is being ripped off compared with mobile phone charges in the United States where they are significantly less than here. What is the Minister doing about it or what action will she take?
The difference in costs is often associated with the difference in standards of living and wage costs and, in countries which are less developed, products are generally substantially cheaper. I was in China in March where one can buy an extraordinary range of products for substantially less than one would pay in any country in Europe, that I am aware.
I was talking about America.
In the United States there are no restrictions in terms of planning or on the size of retail units. Many people would suggest that the failure to restrict the size of units there has led to other social problems. Everything is not always as simple as it appears. What we are trying to do is to encourage competition throughout the economy, whether in transport, aviation or telephony. Whatever area of the economy has inadequate competition generally has higher prices and a poorer quality of service and consumers lose out.
We had a specific purpose in appointing this group. We have never before put a group of people together with the sole focus of examining the issue from the consumer perspective. In the past we had various lobbies involved in discussions on consumer matters and got disparate views from groups that examined some of the issues. I appointed this group precisely because of my concern that we do not have an effective consumer lobby here. Worthy and all as the consumers' association is, at its last annual general meeting, which I attended, there were fewer than 30 people present. I have said this publicly and do not intend any disrespect towards the association. Dermot Jewell is a member of this group also.
Generally, people only complain when they have a complaint specific to their own experience and do not tend to come together as an effective group in society to lobby on behalf of consumers. I hope that some of the efforts of the group I have put in place will help to kick-start a more effective consumer lobby like, for example, that in the Netherlands which is the most effective consumer lobby of any European country.
When will the Minister introduce the new fines?
As quickly as I can get the legislation together. Substantial fines were imposed on some companies recently.
