Retail boss slams Condor food supply “monopoly”

Tuesday 13 November 2018

Condor has its "foot on the neck of the food supply for the Channel Islands” and needs to have its "monopoly" status officially reviewed, a top retail boss has said.

Sandpiper CEO Tony O’Neill called for the island's competition regulator (CICRA) to step in and investigate the ferry provider's freight service in strongly-worded comments made before a panel of politicians tasked with reviewing the island's retail policy.

His company specialises in bringing UK high street brands to Jersey and Guernsey, and includes M&S, Iceland, Checkers Xpress and, most recently, Morrisons (formerly Food Hall) within its supermarket portfolio.

Discussing the challenges facing retailers when bad weather stops produce coming into the island before the Economic Affairs Scrutiny Panel, Mr O’Neill stated: “It hugely concerns me that we have one company with its foot on the neck of the food supply for the Channel Islands."

Pictured: Morrisons supermarket is the latest edition to Sandpiper's food portfolio.

He continued: “It staggers me that CICRA have never in their wisdom decided that they should look into [it]… at least to make sure that the monopoly situation is not being abused. Because it frankly worries the life out of me that we have one company with its foot on the neck… 

“We know even when the boat is delayed that food comes under pressure immediately as soon as people read… that food deliveries are late; the shops will come under a lot more pressure and for any period of sustained shortage we will be wiped out fairly quickly.”

Mr O’Neill later clarified to Express that his comments were made in relation to Condor.

Condor is the key operator when it comes to shipping food into the island, but cargo space on their boats coming into Jersey is bought out by separate freight companies. 

Pictured: The CEOs of Sandpiper CI, Tony O'Neill (left) and Condor Ferries, Paul Luxon (right).

Responding to Mr O’Neill’s comments at the Scrutiny hearing, Condor CEO Paul Luxon said that during last week's inclement weather, the ferry company “rescheduled and added a number of sailings to ensure supplies were maintained.”

He continued: “We are proud of our record in maintaining supplies to the islands over seven decades and this ‘just in time’ service has become more critical in recent years following the closure of all on-island warehouses.”

Elsewhere in the hearing, Mr O’Neill resurrected the issue of the 20% retail tax being brought in without any industry consultation, mentioning the challenge of absorbing this new cost for retailers and questioning why other kinds of shops were not also being targeted with a tax. 

He also discussed how parking charges can be a disincentive for islanders to buy locally in the face of an attractive online marketplace.