An absence of price transparency and a ban on advertising in Ireland's veterinary sector is restricting competition for consumers and may be contributing to higher prices, according to the Competition Authority.
In a report on competition in veterinary services in Ireland which was published yesterday, the Authority said there were "a number of unnecessary restrictions on competition between vets”.
It said competition was "actively discouraged by the Veterinary Council of Ireland's (VCI) Code of Professional Conduct" and said restrictions placed on vets "go beyond what is necessary to protect animals and the public from unethical conduct."
The Authority, pointed out that there have been "significant changes in the demand for veterinary services" in Ireland over the last decade with higher disposable income contributing to a substantial rise in demand for veterinary services for pets as opposed to farm animals.
The country’s 2,446 vets are forbidden from advertising prices, offering discounts, or touting for business. "Truthful, informative advertising and price discounts typically drive competition. Relaxing these unnecessary restrictions would encourage vets to compete on price, to offer new services and to deliver their services in new customer focused ways," according to the report.
Launching the report Authority Chairman, Bill Prasifka, said that while recent legislation “went a long way towards modernising the profession” there were “still a number of changes needed in order for consumers to really benefit from competition.”
The report makes five recommendations to address competition issues in the profession. It says “unnecessary restrictions” on advertising and the present ban on actively looking for new business should be removed.
Current legislation does not explicitly allow vets to form companies to run their businesses. This “may be denying the benefits of improved access to capital and cost savings, and the ability to provide more flexible locations and working hours, to both vets and consumers,” the report said. It recommended that vets be explicitly allowed to form companies to run their business affairs.
The report also found a shift towards pet care and away from farm work. Although there does not appear to be any shortage of vets in practice, the Authority recommended that the Department of Agriculture, Fisheries and Food carefully monitor the number of vets providing farm animal care, especially in rural areas.
It suggested the Department of Agriculture considered new ways of implementing veterinary services such as TB testing and recommend it consider allowing suitably qualified para-professionals to conduct such tests.
Responding to the report the president of Veterinary Ireland Ciara Feeney acknowledged that there were “a small number of restrictions in place” but said they were “in fact vital protections imposed by legislative and ethical requirements with which the profession has to comply”. She said they “were not designed for the competitive benefit of the veterinary profession”.
She said the umbrella group representing vets would work with the Department of Agriculture, Fisheries and Food and the VCI in considering the specific recommendations of the report.
