A report has been published following an independent review of Jersey’s competition and regulatory framework.
The economics consultancy Oxera was commissioned to undertake a review that would identify whether there are changes that could be made to the island’s competition and regulatory framework. The review took into account the context within which the Jersey Competition Regulatory Authority (JCRA) operates, and focussed on securing better outcomes for local consumers and the Jersey economy.
The JCRA was initially established by the States of Jersey in 2001 as an independent regulatory authority for the telecommunications industry. Postal services then became a regulated sector in 2004, and the States enacted the Competition (Jersey) Law in 2005.
Professor Sir John Vickers, who acted as an adviser to Oxera on this review, has expressed the view that it is just as important for markets in a small island economy to work well as it is for markets in larger economies. He added that, to achieve this, it is necessary to recognise that competition policy is not just the task of the competition authority but also that of Government. He also observed that, while it is hard to conduct competition and regulatory policy well and that there are particular challenges in a small jurisdiction, the economic benefits can be substantial.
The report identifies that, while there are benefits in maintaining the current structure, there is a perception that the JCRA is not as effective as it should be. Themes emerging from stakeholders include the need for there to be better communication from the Authority, better coordination on policy between the States and the JCRA, and a pragmatic approach to competition and regulatory activity.
The report sets out 23 recommendations that require changes in legislation, can be implemented by the JCRA itself or require involvement from the Government.
The Assistant Chief Minister, Senator Philip Ozouf, said: "In the last decade there have been important lessons and developments in regulatory and competition policy in both small and larger jurisdictions around the world. The States must ensure that the JCRA is in the best position to perform the very important role with which it has been entrusted.
"I am delighted with what is a substantive review from competition and regulatory experts who have a detailed understanding of the local economy in Jersey. I intend to respond in detail to each of the 23 recommendations that Oxera have put forward and will publish an action plan covering how the recommendations will be addressed by the end of January 2016."
The States of Jersey will now work with the JCRA to develop an action plan and implement the report’s recommendations.