Business lobbies who demand restraints on competition increase costs for all sectors, the chairman of the Competition Authority said yesterday.
Citing regulatory restrictions in the electricity, pub and taxi sectors among others, Dr John Fingleton said many of the most serious curbs on competition resulted from Government regulations.
"Where competition policy is restricted by regulation, the authority's role is confined to advocating greater competition in these sectors," he said.
"The restrictions apply to a vast array of sectors, including pubs, taxis, airports, broadcasting, health insurance, banking, medical services, car sales, milk production, retailing and transport.
"They impose an additional regulatory burden on business generally, and particularly on firms seeking to enter and compete in these markets," he said before addressing the Chambers of Commerce of Ireland last night.
"Ironically, it is business lobbies, pursuing narrow vested interests, which demand restraints that increase the regulatory burden and input costs for the business community as a whole.
"Moreover, groups that are swift to demand regulations that prevent competition in their own market often benefit from competition in other markets."
Dr Fingleton expressed particular concern about the structure of deregulation in the electricity business, which was partially liberalised last February.
He said: "There's doubt as to whether there's any commitment to opening competition in the electricity business. It's not clear how to get competition if the ESB owns the transmission network."
The ESB's National Grid operation has been separated from the core company. It still owns the transmission and distribution network which its competitors must use to send power to customers.
On the structure of the taxi sector, Dr Fingleton said: "The authority's position is that there is no need for any regulation on entry to the business. We believe there's a need for free entry and for improved regulation of quality standards."
He added: "The sort of scaremongering of the Taxi Federation trying to frighten people is exactly what Aer Lingus tried to do for 13 years on the London route."
This served a small group at "enormous cost" to the public. "The cumulative damage is far greater than any benefit this group gets."
Citing other restrictions on competition, he added: "Ultimately, it's not the Government that is the source of pressure for this. It comes from within the business community.
"Everyone thinks they're special. Taxis think they're special because they're carrying passengers; publicans because they're selling alcohol; pharmacies because they're selling prescription drugs; hospital consultants because they're selling medical services.
"We would easily end up in a situation where such special interest arguments deny consumers the benefit of competition across a wide range of markets."
