Minister for Enterprise, Trade & Employment Micheál Martin announces the establishment of a new National Consumer Agency
"Statutory body will champion the cause of the Consumer" - Minister Martin
"Interests of consumers will be brought to the forefront of national and local decision making in Ireland"
The Minister for Enterprise, Trade and Employment, Michael Martin T.D. today (Wednesday 18th May 2005) announced his intention to establish a new statutory National Consumer Agency with an expanded remit to promote and protect consumer interests.
The Minister made the announcement at the publication of the Report of the Consumer Strategy Group and he added: "The new Agency will ensure for the first time that the interests of consumers will be brought to the forefront of national and local decision making in Ireland."
The Minister also announced that a Board of the new National Consumer Agency would be established immediately on an interim basis until such time as the necessary legislation could be enacted to establish the Agency on a statutory footing.
The Interim Board will be chaired by Ann Fitzgerald, CEO of the Irish Association of Investment Managers, who also chaired the Consumer Strategy Group. Membership will also include the existing Director of Consumer Affairs, Carmel Foley, who powers and functions will be incorporated into the new Agency.
The Minister paid tribute to the contribution of successive Directors of Consumer Affairs. "It is critical that in moving towards the expanded remit envisaged for the NCA, that we build on the valuable work done over many years by the Office of the Director of Consumer Affairs. Carmel Foley will bring valuable expertise to bear on the work of the Interim Board," he said.
"Her Office was established in 1978 and was designed to suit the economic circumstances of the day. It is right that that model be modernised to reflect our modern economy and to meet the needs of modern consumers," the Minister said
Other members of the Interim Board will be announced in the coming days
In welcoming the Report of the CSG, the Minister said he agreed with the Group that current policy was not effectively meeting the needs of the modern consumer and that it was essential that a new Agency with an expanded remit be established.
"I am determined that the new Agency will act as a forceful advocate for the consumer and that it will have the necessary powers, functions and support to challenge vested interests and to ensure that the consumers voice is heard," he said
In acknowledging that legislation to formally establishment of the new Agency could not be produced overnight, the Minister said: "It is important that the momentum on the CSG be maintained and I would expect the Interim Board to immediately begin planning for the final structure and operations of the new Consumer Agency."
He added: "I also expect that the Interim Board will carry out some initial work in the area of consumer awareness, advocacy and education which will help to demonstrate to consumers that real change is underway."
The Minister applauded the Strategy Group for the comprehensive nature of its Report. In noting that the Report contained over 30 separate recommendations he said: "The Report clearly demonstrates the extent to which the consumers' interests are entwined with every facet of economic, political and social life."
And he continued: "The extent of the CSG recommendations requires a co-ordinated response and I am immediately establishing a High Level Interdepartmental Committee to examine all the CSG's recommendations and to report back to Government with a detailed implementation plan within 3 months."
In regard to the Groceries Order, the Minister said: "The CSG has recommended that the Order be revoked in its entirety. However, the Report acknowledges that there are strong arguments to be made on either side of the debate. Given the complexity of those arguments, I intend to engage in a public consultation process on the future of the Order. That process begins immediately and I expect to complete it within 2 months."
The Minister said that he was anxious that all parties, including consumers and the Interim Board of the NCA, should partake in the consultation process. He encouraged all interested parties not only to think in the stark terms of retaining or revoking the Order but also to consider whether it would be possible to amend or replace the Order and, if so, what amendments might be appropriate.
The Minister also confirmed that his Department was already reviewing all existing consumer protection legislation. He stated that the purpose of the review was to modernise and codify the body of law in this area, as recommended by the CSG in its Report, so as to ensure that the law reflects the needs of the modern consumer, that consumers themselves fully understand their rights and that traders also comply with the obligations placed upon them.
In concluding, the Minister heralded the publication of the Consumer Strategy Group's Report as a red-letter day and an occasion for celebration by Irish consumers.
"I am very confident that the Report offers a positive opportunity to shift the balance of power towards the consumer. I think the Group's Report and the follow up to it, will help to restore real meaning to the adage that `the Customer is King'" the Minister concluded.
A copy of the report is available at: http://www.djei.ie/commerce/consumer/consumerstrategy.htm
Note for Editors
Full list of recommendations of the Consumer Strategy Group:
|
Number |
Recommendation |
Responsibility |
|
|
Structural Change |
Department of Enterprise, Trade and Employment |
|
Establish the National Consumer Agency |
||
|
|
Groceries Order |
Department of Enterprise, Trade and Employment |
|
Revoke the Groceries Order immediately |
||
|
|
Alcoholic and Non-Alcoholic Beverages |
Department of Justice, Equality and Law Reform |
|
Abolish the limit on the numbers of pub licences awarded. |
||
|
|
Introduce new forms of licences (for example, for cafes) designed to cater for changing consumer tastes in the market place. |
Department of Justice, Equality and Law Reform |
|
|
Ensure that planning is not used as a barrier to entry in respect of pub and other forms of licence. |
Environment |
|
|
Fruit and Vegetables |
Department of Enterprise, Trade and Employment |
|
Increase the number of licences granted to traders |
||
|
|
Apply a consistent approach to casual trading regulations across all local authorities by means of statutory based guidelines. This may require an amendment to the Casual Trading Act of 1995. |
Department of Enterprise, Trade and Employment |
|
|
PharmaceuticalsChange the current methodology for establishing manufacturers' prices of pharmaceuticals. Include a consumer impact assessment to ensure that all consumers are getting best value for money. |
Department of Health and Children |
|
|
Review the GMS/DPS schemes to redress the current imbalance in cross-subsidy of pharmacy incomes by DPS consumer payment. |
Department of Health and Children |
|
|
Strengthen and broaden the current optional incentive scheme for GPs to encourage generic prescribing. |
Department of Health and Children |
|
|
Display prices for branded and generic drugs in pharmacies at point of purchase. |
Department of Health and Children Department of Enterprise, Trade and Employment |
|
|
Allow pharmacists to provide generic substitution for branded drugs. |
Department of Health and Children |
|
|
Passenger Transport |
Department of Transport |
|
Separate the regulatory and ownership functions of the Department of Transport. |
||
|
|
Broaden the remit of the Aviation Regulator to include taxis, buses and other forms of passenger transport. |
Department of Transport |
|
|
Undertake an independent pilot study to evaluate the introduction of a centralised information system, which would also include integrated route planning. |
Department of Transport |
|
|
Planning |
Department of Environment, Heritage and Local Government |
|
Oblige local authorities to demonstrate how needs of consumers have been explicitly taken into account at the forward planning level stage and in dealing with planning applications in relation to retail and other service provisions. |
||
|
|
Interpret the Retail Planning Guidelines in a manner that promotes competition and which is consistent across all local authorities. |
Department of Environment, Heritage and Local Government |
|
|
Utilities |
Department of Communications, Marine and Natural Resources; Department of Enterprise, Trade and Employment |
|
Provide a strong consumer voice in the regulated sector to complement the regulators, especially in energy and telecommunications, in order to ensure full consideration of consumer issues in the regulatory process. |
||
|
|
Current Government Policy and Processes |
Department of Enterprise, Trade and Employment |
|
Increase resources of the Competition and Consumer Policy section in the Department of Enterprise, Trade and Employment, particularly to enhance legislative capability. |
||
|
|
Accelerate the legislative review currently being undertaken by Department of Enterprise, Trade and Employment and include any legislative changes necessitated by the Group's recommendations. |
Department of Enterprise, Trade and Employment |
|
|
Incorporate consumer considerations in regulatory impact analysis (RIA) procedures; consumer-proof all relevant Government decisions. |
Department of An Taoiseach; All Government Departments |
|
|
Organisations in Ireland with a Consumer Remit |
Department of Finance |
|
Review in three years' time, the effectiveness of the Irish Financial Services Regulatory Authority in carrying out its consumer protection role. |
||
|
|
Ensure that the Money, Advice and Budgeting Services is represented on the Consultative Consumer Panel of the Irish Financial Services Regulatory Authority. |
Department of Finance |
|
|
Consumer Legislation and Enforcement |
Department of Enterprise, Trade and Employment |
|
Commission research into small claims enforcement procedures currently available to consumers with a view to establishing whether a more streamlined and effective process can be put in place. |
||
|
|
Increase the limit of the maximum award to €3,000 in the small claims procedure in the District Court. |
Department of Justice, Equality and Law Reform |
|
|
Review the small claims award limit every two years and adjust by means of Ministerial Order, if appropriate. |
Department of Justice, Equality & Law Reform |
|
|
Business and the Consumer: Codes of Practice |
Department of Enterprise, Trade and Employment |
|
Promote the use of codes of practice by all businesses and encourage self-regulation schemes. |
||
|
|
Introduce standardised statutory codes of practice across all public sector bodies. |
Department of An Taoiseach |
|
|
Establish private sectoral complaints boards as an alternative means of redress. |
Department of Enterprise, Trade and Employment |
|
|
Price Control |
Department of Enterprise, Trade and Employment |
|
Repeal the Prices Acts 1958-1972 that are relevant to price controls. |
||
|
|
Structural Change |
Department of An Taoiseach |
|
Expand Social Partnership to include consumer representation on both the Government and voluntary sides. |
||
|
|
Structural Change |
Department of Enterprise, Trade and Employment |
|
Continue support for the Consumers' Association of Ireland. |
||
|
|
Reimburse the Consumers' Association of Ireland for their time spent on public sector committees |
Relevant Government Departments and Agencies |
Last modified: 18/05/2005
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