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Road Fuel Prices: Display (P.146/2011) - comments

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STATES OF JERSEY

ROAD FUEL PRICES: DISPLAY (P.146/2011) – COMMENTS

Presented to the States on 28th October 2011 by the Minister for Economic Development

STATES GREFFE

2011   Price code: A  P.146 Com.

COMMENTS

As Minister for Economic Development, I fully support this proposition to amend the existing price marking legislation to oblige all retailers of road fuel to display their prices so they are clearly visible to passing motorists from the adjacent roadway.

However, I am also mindful that this action will impose more red tape on businesses, many of which are struggling to survive in the current economic climate. In forcing fuel retailers to take this action through legislation, I have to be satisfied that there will be a significant benefit to Island motorists. I also have to be satisfied that the costs to these businesses are not disproportionate to any benefit, bearing in mind that for illuminated gantry-style displays there will be costs in seeking planning consent. As the report by the Jersey Competition Regulatory Authority (JCRA) acknowledges, and I quote from the report: "Obliging retailers to display prices would impose a cost and at least a proportion of these costs are likely to be passed on to consumers".

As I have said, I support this proposition but I also believe that before resorting to introducing the necessary amendments to price marking legislation, efforts should be made to seek voluntary compliance with the JCRA recommendation. The report states that out of 34 retail forecourts, 5 were considered to be displaying their prices in such a way that a passing motorist would notice it without specifically looking for it. To try to achieve a similar price display by the other 29 retailers, I propose that I write to them all requesting that they voluntarily display the prices of their fuels. I understand that certain advertising boards may be erected without planning permission, which will still achieve the desired result.

The effect of what I am proposing is to recommend that this proposition is rejected – at the moment. If by the middle of 2012 there has not been voluntary action to comply with the JCRA recommendation, then I shall have no hesitation in reporting back to the House that this matter should be addressed through legislation.

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P.146/2011 Com.

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