The role of the Tanaiste, Ms Harney, in authorising company mergers has been questioned in a review of competition regulation. The review awarded the Competition Authority a three-star rating, indicating "satisfaction" with its role but it placed the Irish body 13th in an international ranking.
The antitrust division of the US Department of Justice was placed first while the French, Japanese and Canadian bodies were awarded the same three-star ratings as the Irish authority.
The London-based Law Business Research in the Global Competition Review, described the Irish system as a "work in progress".
Compiled from responses to questionnaires and interviews with economists and lawyers, the report said there was no escaping the influence of politicians in the approval of Irish mergers.
Ultimate authority rested with Ms Harney in her capacity as Minister for Enterprise, Trade and Employment. This was a "tricky aspect" of the Irish system.
"Ms Harney has the final say in all merger cases, regardless of the route those cases take until then.
"The `three stars' here mixes appreciation of the authority's ability to conduct investigations autonomously, with concern over the dominant role given to a politician."
On the authority's role in investigating mergers, the report noted that no cases were passed to it in 2000.
This contrasted with an average of two per year.
"In the absence of merger work, the authority has, in theory, had time and energy to concentrate on other duties, such as the pursuit of cartel investigations.
"Yet respondents indicate that the authority has only managed one criminal case in the last five years.
"One Dublin solicitor complained that `there is no emerging jurisprudence' in this field."
The report added: "We heard a number of complaints that staff shortages in this area succeed in holding the authority back in the field of cartel-handling."
It said the authority's transparency before making recommendations was "poor" but praised its economic expertise.
It added that the appointment of Dr John Fingleton as chairman of the authority had "suffused the Irish competition community with optimism".
Still, legislation to overhaul the system was not expected to come before the Oireachtas until autumn.
