The Competition Authority has called on the Government to introduce a system of financial penalties for civil breaches of competition law.

In its annual report for 2005, the body has also indicated that "only a small number" of cartel cases will be brought before the criminal courts in the next few years.

With former aviation regulator Dr Bill Prasifka to start work as authority chairman next Monday, the authority blamed "a legacy of anti-consumer policy and culture" for the absence of competition in many areas .

The long-term effectiveness its civil and criminal enforcement work will depend factors outside its control, it said. "During 2005 a criminal competition case was delayed by 12 months due to the lack of a court room for the trial.

"Another indicator of how difficult it will be be discourage anti-competitive behaviour is that there are no financial penalties for civil breaches of competition law in Ireland."

"Civil fines are seen as an essential tool of competition enforcement in most EU countries and in countries such as Australia and the US."

While the only form of sanction available in the civil courts is an order to cease and desist an activity, the authority did not specify the size of the penalties that it would like to see. It cited the complexity of criminal cartel investigations but said the prosecution of a home-heating oil cartel in Galway, including the first such case before a jury in Europe, meant Ireland was an "international leader" in this area.

The body awaits a High Court ruling in a case it took against the Beef Industry Developmental Society. The Irish Dental Association and the Irish Hospital Consultants' Association agreed settlement terms in cases against them.