THE GOVERNMENT is proposing to abolish the National Consumer Agency (NCA) and return its consumer protection functions to the Department of Enterprise and Employment, The Irish Timeshas learned.
The proposal has been made by the Department of Finance as part of the Government's plans to reduce the number of State agencies in response to the economic downturn.
The NCA has been asked for its views on the plan and no decision will be taken before the consultation process is complete. However, sources have said they believe the agency is "high on the list" of bodies slated for rationalisation.
The agency was put on a statutory footing under new consumer legislation only last year and was given enhanced powers compared to the former Office of the Director of Consumer Affairs, which operated under the aegis of the Department of Enterprise and Employment.
In May, the NCA was widely assumed to be the target of the Taoiseach's wrath when Brian Cowen was heard telling Minister for Enterprise and Employment Mary Coughlan to "bring in all those f***kers".
The remark was picked up inadvertently by a Dáil microphone during a heated debate on rising food prices.
Mr Cowen later expressed regret for his use of language and claimed the comment was made about all bodies - including Government departments, the NCA, oil companies, supermarkets and agencies - which could explain price disparities between Ireland and the UK.
While not proving to be the thorn in the flesh of Government that some consumer advocates hoped it would be, the agency has irritated business interests with its work on behalf of consumers. Enjoying greater independence from Government than its predecessor, it has proved an effective broker in more straightforward disputes involving the promoter of the Barbra Streisand concert, cable operator NTL and Aer Lingus.
Its regular retail price surveys have been credited with encouraging shoppers to switch their custom to cheaper food outlets but have annoyed many business sectors.
However, the Opposition has criticised the agency for failing to take effective action to stem the tide of price increases this year and force retailers to pass on the benefits of the rising euro to consumers.
Fine Gael enterprise and employment spokesman Leo Varadkar has suggested it should be merged with the Competition Authority in a new Office of Fair Trading.
The agency is due to be decentralised to Cork next year but this is unlikely to happen if it is folded back into the department. Its operating budget is about €10 million a year.
Political sources say sweeping changes are planned to cut the number of semi-official bodies funded by the State.
Fine Gael has already claimed savings of €200 million a year could be achieved by closing or merging Government agencies and other bodies.
