Is any political party really ready to act on behalf of the consumer? asks Michael Casey
Despite some minor or rhetorical differences, all of the main political parties seem to agree on low-tax, and value-for-money spending policies. In fact they are borrowing each other's clothes as they move towards the centre - or just left of centre.
There is nothing necessarily wrong with such a high degree of centrist consensus, but from an electioneering point of view there is a difficulty. Economic policies are now so homogeneous that we, the electorate, can't really distinguish between the main parties anymore. That may be one of the reasons why coalition governments are now the order of the day.
So, how does any one party capture the public imagination more than any other? Party leaders must be agonising over this apparent dilemma in the run up to the next election. There is, however, a huge constituency out there which has never been seriously wooed by any party. Before unveiling this brand new wardrobe of eye-catching clothes, it is necessary to look at the various constituencies which exist at present. These would include: manufacturers, professional groups, retailers, builders, farmers, trades unions, public officials.
Interestingly, all of these constituencies have something in common. They all operate on the supply-side of the economy, ie they are all engaged in the production of goods and services. There are historical reasons for this and other less worthy reasons as well. These groups are well placed to provide support to the party which best represents them.
Another interesting fact is that these groups come together in a public forum where they attempt to carve up the national cake between them. It is called Social Partnership - a curious hybrid arrangement - in which the various cartels contrive to fix the price of labour for a number of years ahead. They also have an input into national policies ranging from social justice to the environment. The various constituencies rub shoulders with government in this and several other forums, such as the NESC and the NESF, and other less formal venues.
There seems to be an assumption that this list of lobby groups is fully comprehensive and therefore consistent with democratic principles. One consequence of this (invalid) assumption is that political parties believe that this is the only pond in which votes are to be found.
This is wrong - not merely because 70 per cent of workers do not belong to unions and so are not represented. The biggest voter by far is not in the social partnership tent at all, and has never been invited. And, to date, no political party has made any attempt to woo this sleeping giant. It is time for election strategists to think outside the box - or rather the tent.
What is this huge constituency? Who can it be? If not manufacturers, builders, property owners, farmers, trades unions, who can it possibly be?
It is the consumer. The massive potential of the consumer lobby - a fully representative one - remains untapped by the various political parties.
More political capital should be invested in this ignored sector. What is good for the consumer is good for the economy. This is because a policy of consumerism forces producers to be efficient and ultimately competitive on world markets. We should never forget that the era of cartels and state monopolies stifled the economy for years. Consumerism is the best, if not the only, way of sustaining our recent growth record.
Shifting the focus from the tired old lobby groups to the demand-side of the economy, ie the consumer, would be a bold initiative for any political party. It would give them a vibrant new brand image, and election results to die for. Becoming the champion of consumers would not imply a shift to right or left. But it would mean a desirable gender rebalancing, since the supply-side of the economy tends to be dominated by males, and the demand-side by females.
Historically, the favouritism shown to producers rather than consumers led to bizarre outcomes in this country, eg dear food, dear cars, dear groceries, dear insurance premiums, declining competitiveness, etc., and, added to all that, quite punitive stealth taxes on all sorts of consumer goods and services. Consumers qua consumers were never invited into the social partnership tent. They never got a fair deal and still don't.
It may have been assumed that if social partnership kept wages high, and income taxes low, people would be happy and would not notice the relentless rise in indirect stealth taxes - including the bizarre vehicle registration tax which is inconsistent with EU law. After years of favouring the producer over the consumer in the context of social partnership it is scarcely surprising that Ireland still has an inflation rate which is twice the European average. Irish consumers continue to be offered up on the altar of social partnership.
With the exception of the small claims court, the Irish legal system would also appear to protect the producer ahead of the consumer. Consumers can not take on a corporation or financial institution in the courts without risking personal bankruptcy. Moreover, our legal system does not permit class action suits which, in the US have a strong effect on keeping businesses straight.
At present no one political party stands out as a champion of consumer rights. If one party were to seek the glittering prize of consumerism, it is clear that sops and rhetoric would not suffice. Purposeful action would be necessary to convince consumers that at last they had a champion committed to competition at every level and not afraid to take on monopolies and cartels by means of a beefed-up Competition Authority and Office of Corporate Enforcement. Actions should also include consolidation and rationalisation of the various fragmentary consumer bodies that exist at present. Since consumer spending accounts for almost 60 per cent of GNP, the creation of a government department of consumer affairs (by means of reallocating existing resources) might even be considered.
Which party will break the political mould and take up this enormous challenge in the interest of the nation as a whole? Whoever dares will win and will deserve to win.
Michael Casey is former assistant director general of the Central Bank