State restrictions in the banking, energy and transport sectors are a serious constraint on the economy, the chairman of the Competition Authority said yesterday. Dr John Fingleton said such restrictions imposed "high costs" and were disproportionate to any clear public policy objective.

Addressing the National Competitiveness Council, he said: "Markets in which competition is weak or absent are characterised by higher prices, lower output, less innovation and lower levels of buyer satisfaction." The retail and communications sectors and many private and public services were also marked by weak competition, he added.