Call for new agency to tackle 'rip-off Ireland'

Consumer agency: An independent consumer agency should be established to tackle the excesses of "rip-off Ireland", according to a new report.

The agency would act independently of the Department of Enterprise and Employment as a "one-stop shop" for the spectrum of consumer issues, the report from the Consumer Strategy Group says.

The existing Office of the Director of Consumer Affairs would be subsumed into the new body, which would be responsible for consumer research, advocacy, information, enforcement and education and awareness.

A partnership approach with government, regulators, business, consumer organisations and unions is envisaged in the promotion of consumer interests.

As an early priority, the new body would examine the services sector, which the report describes as an area of major concern to consumers.

The agency would become an important source of information for consumers about products and markets, the report says. A national referral hotline and a web-based information portal are also proposed.

The new agency should be able to impose on-the-spot fines for breaches of consumer law, as well as bringing repeat offenders to court. It should also work with businesses to raise awareness of legal requirements and to help them meet these requirements.

The report says the Irish approach to consumer issues is striking in its heavy emphasis on consumer protection and an absence of programmes of consumer information, research and advocacy on consumers' behalf.

It is also striking in that the business of enforcement is carried out mainly from Dublin, rather than on a regional basis.

The group examined a number of options for new structures, including an enhanced consumer affairs office, the creation of a new agency working in parallel with the office and a merger between this body and the Competition Authority. Opting instead for the creation of a new consumer agency, it says the advantages of this body would outweigh the costs involved.

Establishing a new over-arching agency would involve greater expenditure, it warns. The existing office has an annual budget of almost €4 million, but this would have to be doubled for the new agency, which would have a staff of 80, according to the memorandum sent to the Government with the report.

The board of the agency would be appointed by the minister, with the chief executive being appointed by the board. It would report annually to the minister and the Oireachtas.