Flat-rate freight pricing and tender
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2025.10.21
4.14 Deputy P.F.C. Ozouf of St. Saviour of the Minister for Sustainable Economic Development regarding the flat-rate freight-pricing requirement (OQ.230/2025):
Will the Minister explain whether the flat-rate pricing requirement was part of the joint tender or only part of the single-Island tender and, if part of the joint tender, were both the G.C.R.A. (Guernsey Competition and Regulatory Authority) and J.C.R.A. made aware of the pricing model and were their views sought; and if not, why not?
Deputy K.F. Morel (The Minister for Sustainable Economic Development):
As I have stated in a previous answer to Deputy Tadier this morning, the aspiration, as distinct from the word “condition” that was used in Deputy Tadier ’s question, for a flat-rate card in any new concession agreement was set out in a joint Jersey/Guernsey invitation to tender and followed through in a Jersey-only invitation to tender. With regard to the G.C.R.A., I do not know; that would be up to Guernsey to have decided whether or not to do that.
Deputy P.F.C. Ozouf :
Sorry, I do not think my first one has been answered. My question was were the J.C.R.A. consulted?
Deputy K.F. Morel :
I had answered that in a previous question this morning, that is why I did not put it in the … so the J.C.R.A. was asked as to whether this would create problems from a competition perspective.
Deputy P.F.C. Ozouf :
Sorry, I am specifically drilling on to this issue because I want to … The Deputy Bailiff :
Well we have not got very much time.
Deputy K.F. Morel :
I assume this is a supplementary.
Deputy P.F.C. Ozouf :
Yes, it is a supplementary; yes, it is.
The Deputy Bailiff :
Good, that is all right then.
4.14.1 Deputy P.F.C. Ozouf :
I am drilling into this because at a meeting where 2 other Members and I were at the J.C.R.A., we asked them whether or not they were consulted on the flat-rate card. They said - this was the full board - no, they were not consulted. I pushed them on whether or not they thought they should have been consulted and whether or not they thought it was under the legal requirements to do so. There were rather sketchy answers but it is was clear that they did not provide. I am asking the Minister, did he receive written advice from the J.C.R.A., who of course created the situation by requiring the sale of Condor Logistics earlier, in respect of the flat-rate card?
Deputy K.F. Morel :
It is very interesting that the Deputy mentions Condor Logistics because there is a story that I think has a few tales to tell. But with regard to the J.C.R.A., as I have said before, I understand that the officers asked the J.C.R.A. about whether a provision such as a flat-rate card would present competition issues in terms of Competition Law issues. The J.C.R.A. did not provide an analysis of impact on competition, I do not believe.