The chairman of the Competition Authority warned today the competitiveness of the Irish economy is seriously impaired by the lack of competition in many sectors.
In a speech to the National Competitiveness Council today, Dr John Fingleton said that non-competitive markets are characterised by higher prices, lower output, less innovation and lower levels of buyer satisfaction.
"In many markets in Ireland, competition has been severely restricted or, in some cases, totally prevented by state regulation," he said.
Dr Fingleton said such restrictions are widespread and exist in retailing, transport, banking, communications, energy, and many private and public services.
He urged the National Competitiveness Council to continue to exert a strong voice for competition in sectors that supply exporting business.
He noted that Ireland’s ranking near the bottom of the OECD league table for broadband indicates that monopoly interests still have a strong voice in policy determination.
"Tackling such vested interests is essential if firms that employ and produce in Ireland are to have access to efficiently produced and competitively priced inputs," he said.
Dr Fingleton also suggested that the National Competitiveness Council put greater emphasis on competition in consumer markets.
He said lower prices for everyday products feeds into the consumer price index and that with national wage-bargaining based on the CPI, lower prices would moderate wage pressure.
Second, Ireland competes with other countries to retain and attract skilled individuals not just on salary and tax, but also on lifestyle factors.
Third, companies that learn through competition how to serve consumer needs in the domestic market would be much better placed to compete internationally.