‘Regulator should look at Condor freight rise’
CONDOR’S proposed freight price increases are shocking and 'an example of monopolistic behaviour', the chairman of the Guernsey Retail Group has said as he called for the company to be investigated by the competition regulator.
Jonathan Creasey was commenting on news that the ferry company is set to bring in a 19% rise in the cost of bringing freight to the island from January.
‘They are quite shocking increases,’ he said. ‘It seems they can be done at the drop of a hat with no real explanation or justification.’
He was aware that Economic Development was in contact with Condor, seeking clarification of the reasons for the rise.
Freight represented a massive cost to retailers already, said Mr Creasey.
‘It’s uncomfortable knowing that we don’t really have any alternatives to getting products onto the island.’
While aircraft might be able to carry some items, chilled and frozen foods have to come in a container by sea.
‘I suspect Condor will get these increases through,’ said Mr Creasey. ‘This is a monopolistic behaviour as far as I can see. The Guernsey Competition and Regulatory Authority should be involved.’
The increases were going to make life harder in the island, for both businesses and individuals, he said.
The GCRA said last night that it may not be able to get involved.
'An increase in freight costs risks pushing up prices for businesses across the whole of the Guernsey economy, which in turn are likely to be passed onto consumers. At a time when the cost of living has been rising rapidly, this is obviously a matter of some concern,' it said.
But the GCRA does not have market review powers, so was unlikely to be able to act, unless specifically asked by the States.
After Condor announced its plans, freight company Ferryspeed warned its customers that it could put up its own prices too.
If the increase goes ahead, a source with close links to the food industry has estimated that the charges could lead to as much as a 2% rise in the cost of food in the shops.
James Ede-Golightly, Chamber of Commerce vice-president, said it was concerned.
‘Increasing the cost of freight will add to the challenging landscape of doing business in Guernsey,’ he said.
But while the increase was ‘significant’ he said that they appeared to reflect an array of cost increases that were outside of the company’s control.
‘Unfortunately, this will add to the costs of running a business in the islands and will add to the cost-of-living issues many face today.'
