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Bruton to scrap board in new merged Consumer and Competition Authority       printable version
06 Jul 2011: posted by the editor - Ireland

Government approves proposal for merger of agencies to create powerful consumer and competition enforcer
Minister for Jobs, Enterprise and Innovation Richard Bruton TD is to scrap the board of the National Consumer Agency when it is merged with the Competition Authority, after the Government today gave the go-ahead to the drafting of the Consumer and Competition Bill based on a draft scheme presented by the Minister to Cabinet.

The Programme for Government contains a commitment to “rationalise regulators to strengthen consumer regulation and promote the consumer interest”. Today’s announcement represents a significant first step towards the fulfilment of this commitment. It is expected that the legislation will be presented to the Oireachtas in the next Dail term.

In keeping with the commitment in the Programme for Government to scrap agency boards where appropriate, the new Consumer and Competition Authority will not have a CEO, a Chairman or a board and will report directly to the Minister. Under current legislation, the National Consumer Agency has CEO, a Chairman and a Board of 11 people. This measure will result in savings of approximately €170,000 per year in Board and Board-related fees.

Today’s announcement comes following last Friday’s speech by Minister Bruton in UCD in which he unveiled a proposal to merge five bodies in the employment rights area to improve the service to users and reduce costs.

Making today’s announcement, Minister Bruton said: “If we are to get out of this crisis, we must relentlessly pursue a radical reform agenda, including a determined programme of cost reductions across the economy. In recent weeks I have announced a number of measures which are aimed at this vital goal, and I am determined to continue seeking out and implementing cost reduction policies at all levels of the economy.

“For many years I have argued for a strong competition and consumer regulator acting in the public interest. Today’s announcement of the creation of a strong consumer champion to battle anti-competitive practices and promote the consumer interest is another step in that process. The new Consumer and Competition Authority will be a consumer rights enforcer with real teeth, a strong regulator with the combined resources, experience and expertise to robustly tackle anti-consumer practices and sheltered sectors in our economy.

“The aim of both consumer and competition policy is ultimately to benefit the consumer, and this new body will be a stronger advocate and enforcer against powerful interests in our economy”.

* Last Friday at a speech to an employment rights conference in UCD, Minister Bruton announced a proposal to merge five state bodies in the employment rights sector. The speech is available on the website of the Department of Jobs, Enterprise and Innovation.

The draft heads of the Consumer and Competition Bill provide for the amalgamation and updating of the NCA’s and Competition Authority’s powers and functions. The new Authority will carry out all the functions currently carried out by both agencies.

It is expected that the merger will result in savings to the taxpayer over time through rationalisation of back-office functions currently carried out for each agency individually.

Under current legislation, the NCA has a Board made up of a Chairperson and 11 ordinary members who are appointed by the Minister. It also has a Chief Executive who is an ex officio member of the Board and is appointed by the Board.

Under legislation the Competition Authority has a Chairperson and 2-4 Members who are appointed through an open Public Appointments Service Competition.

The new body will have a Chairperson and 2-6 Members. The resultant non-paying of Board and Board-related fees will give rise to savings in the region of €170,000 per annum.

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