The natural instinct of business is to conspire against consumers to raise prices. When that happens the most vulnerable in society get hammered by paying more of their low incomes for essential goods and services. Whether it is a conspiracy between creameries to fix milk prices and undermine competition from Northern Ireland as happened in the 90's or a conspiracy between car dealers to fix prices and prevent discount wars, the result is the same; damage to the consumer and a less efficient economy - which always translates into job losses.
But the great game of interference in the forces of competition is far more subtle, canny and elevated than pure price fixing agreements in the trenches. It involves restricting entry, curtailing planning, lobbying Government for special privileges by exercising soft power between the deep carpets of Leinster House and high priced restaurants of St Stephens Green. Most TD's and Senators, anxious to bend to the will of professional, business and farming groups and terrified of being accused of threatening Irish jobs will just about do anything, say anything and promise anything to keep these powerful forces satisfied. After all with consumers generally disorganised, the NCA hog-tied by reliance on Government resources and with little common understanding of the great game, what's to be gained by standing up for consumer rights?
That explains the ambivalence and confusion among political parties including Fine Gael when Minister Michael Martin banished The Groceries Order. But not everyone was happy including the Minister now responsible for competition, Tanaiste and Minister for Enterprise Trade and Employment Mary Coughlan TD who is now determined to thwart competition within the grocery market through the back door by imposing a one-sided code of conduct that erects a cocoon around Irish food suppliers and by bypasses her own Competition Authority. Such a move will prove hugely damaging not just to consumers finally benefitting from falling prices and tighter margins, but also to Irish food itself as retailers switch to cheaper imports and jobs are lost. But it isn't the only way Coughlan is reversing the gains made by the competition agenda over the past ten years.
You'd think that in all the guff about making Ireland more competitive, the Tanaiste would be backing up her rhetoric with a simple process like renewing the Competition Authority, following the resignation of three key members including its Chairman Bill Prasifka - but she hasn't. In an extraordinary failure that smacks of incompetence or a deliberate attempt to put manners on The Competition Authority, The Tanaiste has not addressed the legal position of The Competition Authority to function after May this year. Under the 1991 Competition Act it must have five members and a quorum of at least three to continue its criminal investigations, examinations of mergers and takeovers and crucial studies of industry and the professions. Under its founding legislation and to avoid political interference, The Competition Authority permanent members must be appointed by open competition by an arm's length appointment body. That due process takes time but The Tanaiste has done nothing despite the May deadline.
Her Department will, no doubt, concoct a press statement that provides cover for their gaffe-ridden master with excuses about a merger with the NCA and an emergency clause that allows the Minster to make temporary appointments but the whole episode, including her unilateral interference in the groceries market against the express wishes of The Competition Authority stinks of narrow minded border politics being given preference over the national interest by the only member of the Dail whose home county twice rejected The Lisbon Treaty. How can Ireland ever hope to become more competitive with such double standards at the top?
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