Company Takeovers.

Dáil Éireann Debate, Tuesday - 11 November 2008

Tuesday, 11 November 2008

Ceisteanna (118)

Paul Connaughton

Ceist:

197 Deputy Paul Connaughton asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the number of small home heating oil distributors which are being taken over by large operators; if her attention has been drawn to the increase in the number of such home heating oil distributors which are selling out over the past year; if this exit of many small oil distributors from the market will lead to anti-competitive pricing arrangements and subsequently lead to higher prices for homeowners; and if she will make a statement on the matter. [39679/08]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan)

It is the right of any individual or corporation to sell its business and exit the market if it so wishes and it would be inappropriate for the Government to force incumbents to stay in a market. Rather than a reduction in the number of operators in any market necessarily resulting in anti-competitive pricing behaviour, larger companies can benefit from economies of scale and can engage in competitive pricing with rival operators.