JUDGES MUST start jailing business people convicted of serious competition law offences if cartels and price fixing in the Republic are to be tackled, a conference heard last night.
New legislation that increases sentences for such offences to 10 years from five is likely to be passed into law some time in the first half of the year.
Speaking at the Irish Society of European Law competition law forum last night, Declan Walsh, a lecturer in competition law at University College Cork, warned that the courts must impose the new sentences.
While more than 30 people have been convicted of these crimes in the Republic, none has been jailed.
In 2009, Mr Justice Liam McKechnie gave a suspended sentence to Patrick Duffy, who pleaded guilty to authorising car dealer PG Duffy to enter into price-fixing arrangements with other such businesses. The judge warned that in future such offenders would be jailed.
Mr Walsh argued that by increasing jail sentences for competition law offences, the legislature is making it clear that it regards them as very serious crimes. As a result, judges are obliged to start jailing competition law offenders.
He noted that without the threat of prison, few offenders would opt for the Competition Authority’s immunity programme.
This promises leniency for anyone who volunteers information about price-fixing or cartel arrangements between businesses.
He argued that on the basis that there are frequent convictions in Europe for competition law offences, there is likely to be an epidemic of such crimes in the Republic.
Mr Walsh also stated that if the Government was serious about tackling the price-fixing problem, then it had to give the Competition Authority the resources it needed.
The authority’s non-pay budget was down 50 per cent last year on 2008, and staff levels are down over 20 per cent to 39.
Under the revised memorandum of understanding with the EU-IMF troika, the Government is obliged to bring forward legislation strengthening competition law enforcement.
It has also to ensure that the Competition Authority can function effectively.
