`Whistle-blowing' immunity recommended

The use of "whistle-blowing" legislation, which would grant immunity to employees who gave information to the Competition Authority on anti-competitive practices, has been recommended in a new study.

The study, by the Competition and Mergers Review Group, chaired by Mr Michael Collins SC, also called for the Competition Authority to be given greater funding and independence. The report, in the form of a discussion paper on reforming competition law was published yesterday.

"The group is of the opinion that the effective enforcement of competition law would be seriously undermined unless there was adequate protection for `whistle blowers' such as employees who disclose the existence of wrongful conduct of their employers," it says. The report reviews the anti-competitive consequences of the taxi-licensing system and the restriction on opening new pharmacies.

It also examines the licensing arrangements of the retail sale of alcohol, the provision of cable and MMDS television, and cement manufacturing which "may, in fact, have serious anti-competitive consequences".

The group envisages a more independent authority, with "substantial budgetary independence in the manner already enjoyed by other comparable independent agencies". "The offices of the Competition Authority should ideally be located in buildings which are not shared with any other section of Government," it states.

The authority should have the right to appear before Oireachtas committees in relation to competition issues, the group adds.

It believes sectors of the economy which have a specific regulator assigned to them, such as telecommunications and electricity, should come within the remit of the Competition Authority given that competition was being introduced in these sectors.

"Vesting the powers of the Competition Authority in the sectoral regulators . . . would fragment the administration of the Competition Acts and increase the risk of inconsistency in their interpretation and enforcement in different sectors of the economy," the group states.

However, it was divided on the question of exempting smaller companies from competition law and would consider submissions on a de minimis rule. Although a majority was in favour of some measure, defining the issue remained a problem.

"Some felt that a market share criterion fixed at 5 per cent and a turnover criterion fixed at £500,000 [€634,869] would be appropriate. Others felt that market share was so imprecise that a turnover criterion alone should be used," it said.

The Competition Authority is understood to be against such a measure which could preclude it from investigating price-fixing among, for example, a group of pubs. The review group's document may be viewed on the Department of Enterprise, Trade and Employment's Website at www.irlgov.ie/entemp.