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Consumer and Competition bodies to merge on 31 October
01 Aug 2014: posted by the editor - Business, Ireland

The Minister for Jobs, Enterprise and Innovation, Richard Bruton TD has announced that the merger of the National Consumer Agency and the Competition Authority "to create a powerful consumer watchdog with real teeth" will take effect from 31 October this year.

The Minister today announced that he will be signing two orders before the end of this week which will set 31 October as the establishment day for the new Competition and Consumer Protection Commission as well as the commencement date for all Parts of the Competition and Consumer Protection Act 2014 for which he has responsibility.

The establishment of the Competition and Consumer Protection Commission will build on the strong record of the National Consumer Agency and the Competition Authority in recent years. It will place the full range of consumer, competition and criminal powers of the two agencies, along with the strong additional powers put in place by the legislation, at the disposal of this new watchdog.

The move forms part of a programme of reform Minister Bruton has undertaken across his Department and Agencies, which when complete will reduce the numbers of agencies under his Department's has responsibility by 41. This is part of a drive under the Action Plan for Jobs to put in place services which can meet the needs of the modern jobs-rich economy which the Department is committed to support.

This includes:
·        Forfás will be formally amalgamated into the Department of Jobs from tomorrow (1 August), following the enactment of the Industrial Development Act. The staff of Forfás will form the core of a new Strategic Policy Division within the Department
·        The Workplace Relations Bill has been published this week, which will reform the unwieldy system of 5 industrial relations and employment rights bodies and create in their place before the end of 2014 2 streamlined bodies - the Workplace Relations Commission and the Labour Court - http://www.oireachtas.ie/viewdoc.asp?DocID=26857&&CatID=59 )
·        35 County/City Enterprise Boards have now been legally dissolved - independent legal entities with their own boards and administrative structures - and the creation in their place of 31 Local Enterprise Offices within local authorities, to provide better and more services to start-ups and SMEs in every county
·        Transport and enterprise bodies in the Shannon region have been restructured, and Enterprise Ireland and IDA have taken on the enterprise support functions previously exercised by Shannon Development in the area

Commenting, Minister Bruton said: "I am very happy to sign these orders and commence this major piece of reforming legislation with effect from 31 October 2014.

"Firstly, it will establish the new Competition and Consumer Protection Commission. This will be a powerful body with real teeth acting with a wide range of consumer, competition and criminal law powers at its disposal to protect and vindicate consumers' rights.

"Secondly, this law will allow us introduce strong Regulations and powerful new investigation and enforcement powers to ensure fairness between suppliers and retailers in the grocery goods sector. This will give effect to the Programme for Government commitment on this important issue. A consultation is currently ongoing on the precise content of those regulations with the various stakeholders who will be affected, and it is my intention to be in a position to bring in the Regulations as soon as possible after the commencement date for the legislation.

"Thirdly, we are modernising media merger laws to reflect with international best practice and in line with the latest technological developments by implementing in full the recommendations of that Advisory Group and making important changes to update laws in this area.

"The three month advance notice of the commencement of the Act's provisions will assist practitioners and stakeholders prepare for the new provisions.

"I look forward to working closely with all involved in the Competition and Consumer Protection Commission when it is formally established, particularly in its work to protect and enhance consumer welfare."

The Competition and Consumer Protection Act has three main components:

·        Merge the National Consumer Agency and Competition Authority and deliver improvements in competition law to create a watchdog with real teeth acting to protect and vindicate consumers' rights. New criminal investigation functions are being added to the significant powers that already exist to combat serious white-collar crime and ultimately combat higher prices and protect consumers.

·        Regulate certain practices in the grocery goods sector aimed at ensuring balance and fairness between the various players in the sector - suppliers, retailers and consumers. It will introduce strong regulations and powerful new investigation and enforcement powers to ensure fairness between suppliers and retailers in the grocery goods sector. There is potentially a real inequality of arms between these players which can be abused in a manner that is not in the interests of jobs, consumers or sustainable safe food. Relationships will continue to be based on commerce and prices will continue to be set by hard negotiations - this is in the interests of consumers. However new legal requirements for record-keeping and the inclusion of certain terms in written contracts together with strong enforcement powers will ensure that these relationships are fair and sustainable.

·        Update and modernise the law on media mergers to take account of international best practice and technological developments. Diversity of content and diversity of ownership across the media remains an important part of a healthy democratic society. We are retaining the basic model of current laws, based on the principle of avoiding intervention by Government in media ownership except in specific circumstances following procedures determined by law. This is in keeping with the recommendations of the Advisory Group established to examine this area. However it is important to modernise these laws to reflect with international best practice and in line with the latest technological developments, and that is why we are implementing in full the recommendations of that Advisory Group and making important changes to update laws in this area. Signing of the commencement order for this part of the Act is the responsibility of the Minister for Communications, Energy and Natural Resources to whom responsibility for assessing the public interest angle of media mergers is being transferred under the Act.

Tags: National Consumer Agency, Competition Authority

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