Guernsey Launches Assessment Of Proposed Competition Law

by Robert Lee, Tax-News.com, London

14 July 2009

Guernsey’s Commerce and Employment Department has released a report on proposals to regulate mergers and acquisitions on the island. The report notes that the law will protect the interests of consumers, as well as foster greater efficiency in the local economy.

In welcoming the publication of the States Report, Deputy McNulty Bauer, Minister Commerce and Employment, said:

“There are two major advantages for the Island which are likely to arise from the Department’s proposals:

  • Firstly concern has been raised about the rate of inflation in the Island and how this will make the Island increasingly uncompetitive. A key part of the Fiscal Economic Plan is for the States to adopt an anti-inflation strategy and evidence from Jersey suggests that the introduction of competition legislation in that Island has had an effect on curbing levels of inflation, when compared with Guernsey’s situation over the same period;
  • And secondly it is increasingly expected internationally that developed economies such as those that support a financial services sector have full competition legislation in place in order to ensure a level playing field in international trade. Without the legislation there is a risk that access to markets for certain products will be denied.”

Deputy McNulty Bauer continued: “It is important for the consumer and the island’s economy that competition legislation is put in place, but it is important that the mechanism Guernsey puts in place is proportionate to our economy. The Department’s proposals strike the right balance and we believe that the proposals represent good value for money.”

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