Anti-consumer policies must be tackled

IRELAND is “too small to be slow” and needs to strengthen policy and regulation if it is to increase competition, the chairman of the Competition Authority told business leaders in Waterford yesterday.

At a business breakfast organised by the Waterford Chamber of Commerce, Dr John Fingleton urged a tackling of vested political interests and the repealing of legislation that is anti-competitive.

“Ireland has a background or a legacy of anti-consumer culture,” he said, referring to the historical impact of state-run monopolies and cartels. “Regulation that restricts competition is a large part of anti-consumer policy.”

Dr Fingleton said that, while Ireland’s tax and regulatory environment is generally attractive, high costs and a lack of competition in some markets hinder effectiveness.

A recent study by the National Competitiveness Council ranked Ireland 14 out of 16 countries in terms of competitiveness.

The Competition Authority remains concerned about high prices in sectors including the energy, infrastructure, telecommunications and refuse sector, as well as in professions such as the legal profession.

“We have some of the highest landfill charges in Europe, yet we’ve far more land than many countries,” he explained. “In Holland landfill is cheaper and yet it is more densely populated.

“All evidence suggests that once competition is introduced it makes the people in the existing market stronger.”

The breakfast at Dooley’s Hotel, which was sponsored by the Irish Examiner and Ulster Bank was attended by many from industry and business in the city.

Mr Liam Fennelly, president of the Waterford Chamber of Commerce said competition has an effect on economic growth and impacts on the general standards of living for Irish citizens.