Competition Authority Can't Intervene On Mooring Fees

Wednesday, 13 December 2023 07:52

A bid by the Guernsey Boatowners Association to get the island's Competition and Regulatory Authority to intervene in the row over mooring fee increases has failed.

The Guernsey Boatowners Association (GBA) took its complaint over mooring fee increases to the Guernsey Competition and Regulatory Authority (GCRA) because it claimed that Guernsey Ports operated a monopoly.

Ports will increase mooring fees next year by between 20% and 31%. It says that the owners of larger boats will pay more and it will hold off, at this stage, on plans for similar increases in 2025 and 2026.

Ports is increasing fees in a bid to strengthen its financial position. Boatowners claim they pay their fair share and that it's the airport's losses that are negatively impacting the accounts.

Michael Byrne, the CEO of the GCRA, says it can only get involved where market forces operate and a dominant player abuses its power:

"The GCRA can only act using powers given to it by the States of Guernsey. The legal powers of the GCRA do not extend to circumstances where the States of Guernsey has removed sectors of the economy – such as airlines or the dairy industry -- from the scope of competition law, or where it has reserved powers to itself – such as the price setting powers in this case.

The GCRA’s powers therefore do not extend to assessing a competition law complaint in respect to mooring fees.”

In response, boatowners say they will have to rely on a motion brought to the Assembly by a group of deputies who ask for the increase to be cancelled, or annulled. The GBA says members would be willing to pay a 10% increase next year.