Mr John Bruton has said newly appointed Internal Markets Commissioner Mr Charlie McCreevy must ensure public services are open to competition on a fair and equal basis.
John Bruton
The former taoiseach said recent statistics showed that despite the fact a common market for goods and services is supposed to have existed since 1992, the "bulk" of public procurement by Government authorities in Europe remained closed to providers from other European countries.
"We have monopolies where we should have competition and this explains why the price of public services are increasing at many times the rate of increase in other goods and services," he said.
"I believe that Charlie McCreevy should make it an objective to ensure that 100 per cent of public services are open to competition on a fair and equal basis, so that European consumers can enjoy the best European services at the lowest possible price wherever they live in Europe."
Mr Bruton said consumer price figures published the same day that Mr McCreevy was appointed to the post "show how important this job is, and how far behind Europe is in promoting genuine internal competition, particularly in regard to public services.
Mr Bruton cited the example of refuse charges, which he said had increased by 25 per cent in the last year, or 10 times the rate of inflation. He said hospital charges increased by five times and electricity charges at double the inflation rate.
"In the private sector the cost of having something repaired is increasing at many times the rate at which buying something new is going up in price. While footwear is falling in price, the cost of having shoes repaired has increased by four times the rate of inflation in the last 12 months."
Mr Bruton said the European Commission website, attempting to promote its services directive for competition in the services sector, give reassurances that it will not promote competition in the area of public services and that it will not open up public services to competition.
"This is not what Europe needs. While there is plenty of competition in the supply of goods there is not sufficient competition in the supply of public services and this is illustrated by the increases just quoted for Ireland in regard to a range of public services.