Failure of Competition Enforcement in Ireland

Fair Competition

In 2004, Dr John Fingleton as head of the Competition Authority stated to the Public Accounts Committee that anti-competitive practices were costing the Irish economy circa [FONT=Calibri€4 billion annually. That equates to approximately €2,400 per household each year. Yet successive Governments have refused to enforce Competition Law to the detriment of consumers, taxpayers and small businesses. How can we make this Government take Competition issues seriously?[/FONT]

creedp

Fair Competition wrote: »

In 2004, Dr John Fingleton as head of the Competition Authority stated to the Public Accounts Committee that anti-competitive practices were costing the Irish economy circa [FONT=Calibri€4 billion annually. That equates to approximately €2,400 per household each year. Yet successive Governments have refused to enforce Competition Law to the detriment of consumers, taxpayers and small businesses. How can we make this Government take Competition issues seriously?[/FONT]

The irony of it is that competition in some areas is leading to higher prices for the consumer, e.g. electricity market.

Fair Competition

creedp wrote: »

The irony of it is that competition in some areas is leading to higher prices for the consumer, e.g. electricity market.

In many former monopolised markets, such as the electricity market, there has been a recent entry of more market participants. However there appears to be very little competition on price between those companies and actually a de facto monopoly seems to be still in existence. On the face of it this appears to be anti-competitive and further highlights the point that competition regulation in Ireland has been an abysmal failure. Another prime example of such an industry facing competition issues would be the cement sector.

creedp

Fair Competition wrote: »

In many former monopolised markets, such as the electricity market, there has been a recent entry of more market participants. However there appears to be very little competition on price between those companies and actually a de facto monopoly seems to be still in existence. On the face of it this appears to be anti-competitive and further highlights the point that competition regulation in Ireland has been an abysmal failure. Another prime example of such an industry facing competition issues would be the cement sector.

This seems to be indemic in this country though, e.g. we allow private companies to fund motorway projects and in return allow them to collect tolls to make a return on this investment but if the toll income isn't high enough the State has to subvent the private shareholders .. there appears to be no downside risk to private investment in this country as exemplified by the recent banking debacle

Fair Competition

creedp wrote: »

This seems to be indemic in this country though, e.g. we allow private companies to fund motorway projects and in return allow them to collect tolls to make a return on this investment but if the toll income isn't high enough the State has to subvent the private shareholders .. there appears to be no downside risk to private investment in this country as exemplified by the recent banking debacle

I quote George Stigler:- “many corporations regularly breach regulatory laws, confident that they won't be caught or that, if they are, the financial benefits derived from the breach will exceed the costs of the fines assessed against them; regulatory agencies tend to be understaffed, unaccountable, and peopled by bureaucrats - many of whom are drawn from the industries being regulated - who see themselves as partners with industry, rather than its overseers; and the standards established by regulatory laws are often reactive, rather than preventive, and too weak to stop corporations from causing serious harm to people and the environment”.

Fair Competition

Fair Competition wrote: »

How can we make this Government take Competition issues seriously?

Hi, newbie.

What would you do?

Farmer Pudsey

The Competition Authority another quango that should have being given the boot. It let Topaz buy the Statoil garages and have 75% let me repeat that 75% of the retail car fuel market that is some Competition Authority. Also if farmer protest outside Meat Factories down come the competition authority. After over 10 years in operation the only sucessfull case was against a couple of car dealers for contriveing to distort the market a coule of Ford and Pugeot dealers if I remember right.
Personally I think it is a waste of money get rid of it save the exchequer the cost of it

Fair Competition

Farmer Pudsey wrote: »

The Competition Authority another quango that should have being given the boot. It let Topaz buy the Statoil garages and have 75% let me repeat that 75% of the retail car fuel market that is some Competition Authority. Also if farmer protest outside Meat Factories down come the competition authority. After over 10 years in operation the only sucessfull case was against a couple of car dealers for contriveing to distort the market a coule of Ford and Pugeot dealers if I remember right.
Personally I think it is a waste of money get rid of it save the exchequer the cost of it

The Competition Authority is a disgrace!

With cartel activity at epidemic levels, business’s closing daily and unemployment at record highs, it is time to take the bull by the horns and restructure the Competition Enforcement regime. This root and branch requirement means placing the entire investigative and enforcement function in the hands of An Garda Siochana – preferably as a division of the Criminal Assets Bureau. This stand-alone enforcement agency should be supported by legal and economic experts. In this way, the emphasis and extra funding can be deployed on criminal investigations.

Alongside or as part of the Criminal Assets Bureau Division, there can be a slimmed down version of the present Competition Authority to deal with mergers, market studies and advocacy. That said, the best advocacy is action and newspaper headlines detailing business elite receiving custodial sentences will quickly get the deterrence message across. There are currently only two Gardaí working in the Competition Authority. That is the equivalent of only two Gardaí patrolling the streets of Dublin at night!

This radical restructuring will be of massive benefit to the exchequer, bringing in hundreds of millions in fines annually, whilst lowering the cost base of the economy and creating jobs. Effective Competition Law Enforcement will provide an ongoing devaluation effect for the economy in much the same way that Economists have repeatedly called for the devaluation of our currency.