REFORM:THERE WAS a broad welcome yesterday for the labour market adjustments and the competition reforms outlined in the announcement on the joint EU-International Monetary Fund (IMF) programme for Ireland.
But was this the work of the Irish Government or have these measures been foisted on us by the EU and IMF?
A Department of Finance spokesman stressed that everything in the four-year plan was drafted in the department and approved by the Government.
The EU, IMF and the European Central Bank saw an outline of the plan before it was published and indicated their broad approval.
But there are a number of measures included in the six-page statement issued on Sunday that are not in the National Recovery Plan.
In terms of labour market reforms, the independent review of registered employment agreements and employment regulation orders – outlined in the recovery plan – must be agreed with the European Commission Services.
There were also competition-related issues listed in Sunday’s deal to remove restrictions in the legal and medical professions.
It is understood that an EU delegation met representatives of the Competition Authority last Tuesday. The authority outlined its wishlist of measures to be introduced and most were included in the statement issued on Sunday night.
“We look forward to the details being fleshed out in the coming weeks,” Declan Farrell, chairman of the authority said yesterday.
As always, the devil will be in the detail – or, in this case, in the upcoming memorandum of understanding. The EU and IMF has sought the establishment of an independent regulator for the legal profession, which is currently self-regulated.
The Government already plans to appoint a legal ombudsman, to handle the public’s complaints. But the Competition Authority wants an independent legal services commission appointed – an external body with teeth to regulate barristers and solicitors.
The EU and IMF also want recommendations relating to the Legal Costs Working Group, which is aimed at making fees more transparent, to be implemented. A Bill is currently being drafted.
In a statement, Ken Murphy, director general of the Law Society, said: “The council of the Law Society will consider carefully the contents of the Government’s four-year plan at its next meeting.”
Plans to liberalise the market for general medical practitioners and allow newly-qualified GPs to treat public patients, without having to wait for a contract to become available, could bring down patient fees.
But there were raised eyebrows at the proposal to lift the restrictions on advertising by GPs, given that this has already happened.
An examination of the cap on the size of retail premises – to permit hypermarkets – was criticised by Rgdata, which represents independent retailers.
“We don’t need stores that are four times the size of Croke Park,” said Tara Buckley, director general of the organisation. “They suck business out of town centres.” But she favours a review of the registered employment deals.
Her members are due to pay a 1.25 per cent increase in January and the same again in June. The hourly rates paid are already about €2 higher than the national minimum wage.
