THE COMPETITION Authority’s ability to carry out its statutory function has been “compromised”, chairman Declan Purcell said.
Speaking at the authority’s annual conference, which marked its 20th anniversary, he likened the merger of his organisation with the National Consumer Council announced by the last government to a shotgun wedding.
The authority has lost over one-quarter of its staff since 2006, as departing employees have not been replaced owing to the ban on recruitment across the public sector, he said.
In a more upbeat assessment, Mr Purcell pointed to changes in attitudes since the authority was established. He said that the benefits of competition are more widely recognised among public servants and the general public.
Opening the conference, Minister of State for European Affairs Lucinda Creighton said the authority had an “extremely positive legacy”. A number of speakers offered assessments of the authority’s performance over two decades.
William Kovacic, a member of the authority’s US counterpart, said its first 20 years were “unsurpassed” by any other competition enforcer in the world in its first decades.
AL Goodbody lawyer Dr Vincent Powerwas less glowing, saying the agency had had periods of “occasional slumber” and that some of its studies of individual markets took too long. Such studies assess how barriers to competition can be removed or lowered. He cited an analysis of the medical profession which took 10 years to complete.
Dr Power noted the authority’s independence had been respected by successive governments, allowing it pursue it objectives.
Dr John Fingleton, who led the Competition Authority before moving to head its British counterpart, described the lack of sanctions for breaking competition law in Ireland as “shocking”, adding that Ireland still has a “huge” amount of work to do to improve its competition policy.
He advocated three changes. First, the burden of proof in relation to practices which restrict competition should rest with those advocating restrictions, not on those advocating their removal, as is currently the case.
Second, the voice of consumers needed to strengthened. Finally, Dr Fingleton noted that formulation of Government policy should be more transparent.
He said Ireland lacked transparency when compared to Britain, and that vested interests use this to shape policy in their favour and against the interests of consumers.
He noted there was little pressure on the Irish Government to act on competition issues and this is different from the UK where the government must respond to that country’s competition authority within 90 days of its recommendations being made. There is no such onus on the Government in Ireland. He praised Minister for Justice Alan Shatter for pushing reform of the legal profession.
