The groups say that the “lack of powers” for the Guernsey Competition and Regulatory Authority to pry into the practices of States departments, particularly trading entities managed by the STSB, is harming consumers and the regulation model should be brought into line with Jersey.
The boating groups asked the GCRA to investigate the proposed hike in mooring fees at the end of last year, but the regulator said it had no powers to act in those circumstances. States members twice approved the inflation-busting hike in these fees.
Nick Guillemette, President of the GBA, and David Norman, President of the GMTA, argue that States departments enjoy a dominant market position which is exempt from the competition law which allows them to set prices without independent oversight.
“Our particular problem related to mooring fees where we considered that leisure boat owners were being targeted and that STSB were abusing their dominant market position. ie. Guernsey Ports under STSB control all secure moorings within the local marinas and the Pool area,” they said.
“However, our main concern here not only relates to our situation but more importantly to general consumer protection from a monopoly position.
“We consider that the local consumer should be very concerned and horrified if they realised the consequences of this current Law and its discrimination whereby the protection from abuse like States departments remains under the control of the States themselves and not an independent authority like GCRA which was set up specifically to protect the consumer.”
Pictured: Mooring fee increases proposed by Guernsey Ports have been backed twice by a majority of States members in the past several months.
Last month it was revealed that the GCRA had requested more funding from the States to exercise its role as regulator, leading to Economic Development announcing a review of the regulatory model in the face of a changing global picture on regulation.
That led to some deputies expressing concern with the size and role of the Authority as it stands, but others felt it should have a stronger role in assessing the prices set by government, as well as expanding its work into other private market areas such as construction.
The boating groups dismissed arguments that the regulator is too big for the size of the community in the Channel Islands.
“The Jersey Competition Authority (JCRA) do have these powers to act as an economic regulator on Jersey States departments and we want to see the same here in Guernsey,” they said.
Mr Guillemette noted that the GCRA has acted to save Guernsey residents millions of pounds since its inception, including in conveyance fees, telecoms and private medical services.
“Jersey does it successfully and one could argue that smaller communities feel the effects of any abuse by monopolies much more than larger domains. None of this protection comes without a cost.”