Guernsey lawyer says scrap competition watchdog

A Guernsey lawyer says Guernsey's market should be "allowed to play out without interference"

A Guernsey lawyer has called on the States to scrap the island's competition regulator.

Deputies are due in July to debate whether to suspend local competition law so Airtel Vodafone can leave the market and be bought by Sure.

Dr Raymond Ashton called for the market to play out "without interference".

Guernsey Competition and Regulatory Authority (GCRA) said well-regulated competition law was "essential" to healthy markets.

Under the current laws any acquisition worth more than £2m needs to be approved by the regulator.

The GCRA has signalled that it would be reluctant to approve Sure's deal to buy Airtel.

Dr Ashton said the regulator "incurs large costs" and he is unsure of the economic benefit.

He added: "You don't need a regulator but perhaps there should be a government department that looks at prices and has some powers."

'Large-scale investment'

Deputy Neil Inder, President of Economic Development, has urged deputies to back plans to suspend the island's competition law.

"Sure's plans included potential investment worth tens of millions of pounds in infrastructure to improve network quality and services," he said.

"If the States approves the exemption, it will mean that Airtel exits the market in an orderly way with consumer protection and competition conditions in place.

"The commitments from Sure secure the best possible outcomes for consumers and guarantees large-scale investment in Guernsey."

Under the proposals from the Committee for Economic Development, customers with Airtel contracts will be given deals with Sure under the same terms for three years, if approved by the States.

Deputy Steve Falla, member of the Committee for Economic Development, is opposed to the proposals.

He said the regulator should be allowed to do its job for consumers.

A GCRA spokesman said: "Effective and well-regulated competition law is globally recognised as essential to healthy markets and protecting consumer choice and value.

"The GCRA exists to ensure that policy set by government on behalf of the people, and businesses, of Guernsey is properly and professionally applied."

Follow BBC Guernsey on Twitter and Facebook. Send your story ideas to [e-mail].