AN ABSENCE of price transparency and a ban on advertising in Ireland’s veterinary sector is restricting competition for consumers and may contribute to higher prices, according to a report by the Competition Authority.
The report also finds a shift towards pet care and away from farm work. Although there does not appear to be any shortage of vets in practice, the authority recommends that the Department of Agriculture, Fisheries and Food carefully monitor the number of vets providing farm animal care, especially in rural areas.
It suggests the department consider new ways of implementing services such as TB testing and recommends that it consider allowing suitably qualified para-professionals to conduct such tests.
In the report on competition in veterinary services in Ireland, which was published yesterday, the authority says there are “a number of unnecessary restrictions on competition between vets”.
It says competition is “actively discouraged by the Veterinary Council of Ireland’s (VCI) code of professional conduct” and that restrictions placed on vets “go beyond what is necessary to protect animals and the public from unethical conduct”.
The authority points out that there has been “significant changes in the demand for veterinary services” in Ireland over the last decade, with higher disposable income contributing to a substantial rise in demand for pet care as opposed to farm animal care.
The State’s 2,446 vets are forbidden from advertising prices, offering discounts or touting for business.
“Truthful, informative advertising and price discounts typically drive competition,” the report says. “Relaxing these unnecessary restrictions would encourage vets to compete on price, to offer new services and to deliver their services in new customer-focused ways.”
Launching the report, authority chairman Bill Prasifka said that while recent legislation “went a long way towards modernising the profession”, there were “still a number of changes needed in order for consumers to really benefit from competition”.
The report makes recommendations to address competition issues in the profession. It says “unnecessary restrictions” on advertising and the present ban on actively looking for new business should be removed.
Current legislation does not explicitly allow vets to form companies to run their businesses. This “may be denying the benefits of improved access to capital and cost savings and the ability to provide more flexible locations and working hours, to both vets and consumers,” the report says.
It recommends that vets be explicitly allowed to form companies to run their business affairs.
Responding to the report, the president of Veterinary Ireland, Ciara Feeney, acknowledged that there were “a small number of restrictions in place”, but said they were “in fact vital protections imposed by legislative and ethical requirements with which the profession has to comply”.
She said they “were not designed for the competitive benefit of the veterinary profession”.
She said the umbrella group representing vets would work with the department and the VCI in considering the specific recommendations of the report.
