Dáil Éireann Debate, Tuesday - 14 July 2020
34. Deputy Verona Murphy asked the Tánaiste and Minister for Business, Enterprise and Innovation if he will list the requests made under section 10(4) of the Competition and Consumer Protection Act 2014 to the Competition and Consumer Protection Commission; his plans to make a further request; and if he will make a statement on the matter. [15682/20]
Amharc ar fhreagra37. Deputy Denis Naughten asked the Tánaiste and Minister for Business, Enterprise and Innovation the detail of the requests made under section 10(4) of the Competition and Consumer Protection Act 2014 to the Competition and Consumer Protection Commission; his plans to make a further request; and if he will make a statement on the matter. [15635/20]
Amharc ar fhreagraI propose to take Questions Nos. 34 and 37 together.
Ensuring fair competition while protecting consumer welfare is vital for the continued growth of the economy. When I become aware of serious issues of concern, I may invoke the powers under Section 10(4) of the Competition and Consumer Protection Act 2014 to request that the Competition and Consumer Protection Commission (CCPC) conducts relevant studies or analysis relating to consumer protection and welfare, reviews any practice or method on competition affecting the supply and distribution of goods or the provision of services, or any other matter relating to competition.
Since 2014, three requests have been made under Section 10(4) of the Competition and Consumer Protection Act 2014 to the CCPC. The requests concern:
1. Options for Ireland’s Mortgage Market
In June 2017, the CCPC published ‘Options for Ireland’s mortgage market’, which reviewed how best to lower the cost of secured mortgage lending and improve competition and consumer protection in the market. The CCPC set out thirteen options for Government to address barriers to entry to the Irish market. The options were split into short, medium, and long term measures and focused on restoring trust in the banking sector, consumer switching and business friendly initiatives to attract entry into the market. The report was submitted to the Minister of Finance who had requested the study. The consideration and implementation of the options with the relevant Departments and Agencies is a matter for the Department of Finance.
2. The Operations of Ireland’s Waste Collection Market
In September 2018, the CCPC published ‘The Operation of the Household Waste Collection Market’ study, which was the first in-depth analysis of this market from a competition and consumer protection perspective. The CCPC reviewed the current structure and the evolution of the waste collection market, the economic theory behind utility markets and compared Ireland’s market to those of other European countries. The CCPC identified a range of issues on the operation of the market and the CCPC’s findings indicated that the market was moving towards a service provision model of unregulated monopoly operators, where the State in most cases did not have any means of incentivising or controlling the market. The report was submitted to the Minister for Communications, Climate Action and Environment, who had requested the study. It is my understanding that the recommendations are under consideration as part of the development of a new Waste Action Plan for Ireland.
3. The Operation of the Public Liability Insurance Market
On 15 August 2019, the former Minister for Business, Enterprise and Innovation requested that the CCPC examine how the public liability insurance market operates, how competition works in that market and whether any practice or method of competition affects the pricing levels of public liability insurance within that market. To fulfil the request, the CCPC has reported that it is currently completing an exercise that includes the following actions:
- A review of current issues and recent studies in the sector, including the reports of the Cost of Insurance Working Group and the Personal Injuries Commission.
- An overview of how the market operates and how public liability insurance is procured, including the extent to which insurance is intermediated by brokers or purchased directly from insurers.
- An analysis of the market structure and levels of competition.
- Determinants of costs, premia and profitability in the market.
- An assessment of barriers to entry and exit.
- A review of similar markets and studies internationally.
To develop the study, the CCPC is undertaking a wide range of activities where the majority are nearing completion:
Holding meetings with representative groups, public bodies, industry representatives and customers.
Conducting customer focussed market research among a representative sample of businesses, community groups and sports organisations.
Issuing a public consultation paper to obtain the views of key stakeholders.
Analysing data that is available on the market.
Undertaking desk-based research.
The CCPC is currently reviewing the type and range of information obtained to date to ensure that any potential issues that could impact on the level of competition in this market are identified. This will also help inform any potential recommendations which will be developed in the final stage of the study. The CCPC is working to conclude the study as efficiently as possible as a key priority for the organisation.
