Competition watchdog divorce facing probe

Wednesday 17 June 2020

Jersey's government is planning to set up a panel to scrutinise the abrupt break-up of the Channel Islands’ competition watchdog, which has left each island having to fund its own Competition Regulatory Authority again.

The decision to terminate CICRA so that Guernsey and Jersey could go their separate ways was announced in April by Economic Development President, Deputy Charles Parkinson.

In a statement, he said the divorce followed a shock request from Jersey’s Economic Development Minister, Senator Lyndon Farnham, in February.

While Deputy Parkinson said his committee believed any perceived issues with the regulator could be ironed out, he said his Jersey colleague felt the shared path could be followed no further. 

Video: Jersey's Economic Development Minister Senator Lyndon Farnham was grilled about the CICRA demerger at a recent Scrutiny hearing.

Despite those discussions taking place in February, it wasn’t until two months later that news of the separation was made public, with few reasons given for the abrupt break-up and the decision-making behind it. 

But now it looks set to come under closer examination.

A scoping document for a review of the demerger of CICRA by Jersey's Economic and International Affairs (EIA) Scrutiny Panel - a group of politicians responsible for probing government decisions impacting the island's economy - has now been approved. 

News of the potential review follows a hearing in which the Economic Development Minister admitted that the costs of the break-up and establishment of a fully independent Jersey Competition and Regulatory Authority (JCRA) were not yet fully clear. Those costs haven't been revealed in Guernsey either. 

Pictured: The exact cost of splitting up CICRA and setting up a fully independent GCRA and JCRA is not yet known.

Work on establishing a Guernsey Competition Regulatory Authority is already at an advanced stage.

During today's States meeting, the appointment of the Chairman and an Ordinary Member of the GCRA are expected to be confirmed.

John Curran is nominated as Chairman - having previously worked as Chief Executive of CICRA and its predecessor, the Office of Utility Regulation.

Caroline Chan is nominated as Ordinary Member. She is an Advocate and Partner at Mourant and has worked as a solicitor in Hong Kong and England before moving to Guernsey. 

Pictured top: Senator Lyndon Farnham (Jersey), and Deputy Charles Parkinson (Guernsey).