Dáil Éireann Debate, Thursday - 16 December 2004
1 Mr. Hogan asked the Minister for Enterprise, Trade and Employment when the Competition Authority will publish its studies on the professions; the likely timetable for implementation of the authority’s recommendations; and if he will make a statement on the matter. [33881/04]
Amharc ar fhreagraThe Competition Authority published its final report on competition in the engineering profession on 1 December 2004 and concluded that the regulatory regime in that profession facilitates competition. The authority previously published a consultation document on the architecture profession and I expect to receive that report by March 2005. The studies of other professions, across the medical, legal and construction sectors are ongoing and those reports will be released during 2005. A consultation paper and initial recommendations on the veterinary surgeon profession will be published in the first quarter of 2005 and the final report in the second half of the year. The authority's initial recommendations and consultation paper in respect of the two legal professions, solicitors and barristers will be published in January 2005 and the final report will be published later in the new year. Initial recommendations and consultation papers in respect of each of the three remaining medical professions will be published during the second half of 2005. On receipt of the final reports, I will examine the recommendations and take any appropriate action as quickly as possible.
Will the Minister agree that a two and a half year gestation period for the Competition Authority to draw up initial consultation papers and final reports on the professions is considerable? The issue regarding competitiveness was brought to the attention of the Taoiseach and Tánaiste as a serious problem facing the economy as far back as 2001. Will the Minister accept that no action has been taken by the Government in tackling lack of competitiveness in certain areas? Today, the Central Statistics Office published a report indicating prices for many goods and services are higher in Dublin than the rest of the country. What timescale does the Minister envisage to ensure the Competition Authority is given the resources, back-up, leadership and direction that it badly needs to ensure action will be taken on the liberalisation of the professions as early as possible?
The Competition Authority has held extensive consultations in compiling these reports. Significant research was also carried out by Indecon and published on 20 March 2003, which was an important part of the process. The Competition Authority's work on mergers has stretched its capacity and, at various times, has created pressures in it achieving its workload. Sanction for six additional posts, specifically dealing with mergers, was recently given to the authority. The Competition Authority recently completed its study on the banking sector, published this week.
I would be worried if the banking sector welcomed it.
Competitiveness is not just about prices but goes across a range of issues in the economy, such as research and development, skills and availability of labour force. With the establishment of the anti-inflation group by the Government several years ago, a significant focus has been brought to inflation and bringing it under control. We must be vigilant with the pricing and competition issue.
Is the Minister happy with the Competition Authority's performances in so far as it has only brought four cases to court? Is this an indication of the authority's will to tackle vested interests in the economy in liberalising the market? Will the Minister comment on the statement by the chairman of the authority that bank charges should be left to the banks and market and that the Irish Financial Services Regulatory Authority, established to deal with these matters, should have nothing to do with the adjudication and notification of charges from financial institutions?
I met recently with the chairperson of the Competition Authority. He has been a particularly energetic force in driving forward the competition agenda. The report on engineers was published on 1 December 2004 and it found that the current regulatory regime in the engineering profession facilitates competition. He went on to make a number of recommendations. However, there are more difficult issues in the pipeline. I am satisfied with the role and performance of the Competition Authority to date. I am relatively new to this office, but I noticed the impact of the Competition Authority on other sectors of the economy and on the public service. I hope its impact will grow over time and be evident in the context of future reports. The consultation process facilitates a variety of groups to respond, make submissions and so on. That in itself creates a lengthy process.
In terms of the banks, I will be in receipt of the report dated 14 December. I would prefer to study it in some detail before making any further comments on it.
