States departments operating as businesses, such as States Works, will be subject to the new competition law.

STATES departments operating in a business capacity will be covered by proposed competition law, Commerce and Employment has confirmed.

A spokesman said that it would be extended to them as a matter of principle.

Such a ‘business’ would be likely to include any economic activity, trade or profession, whether or not it was carried out for profit.

‘The provisions of the law will be of particular relevance to States-run businesses that are in competition with the private sector,’ said the spokesman.

With regard to private sector refuse contractors, as a hypothetical example to demonstrate that point, action could be taken only if it could be established that States Works was in a dominant market position and that it had in some way abused that situation, for example by charging unfair prices.

Responding to Guernsey Press questions, Commerce and Employment said it was important to note, however, that the legislation was designed in the interests of the customer rather than businesses as such, although those businesses were also ‘customers’ of Guernsey.

‘It is important to note that the legislation also makes provisions for exemptions,’ said the spokesman.

An example would be where it could be established that the customer derived a fair share of the benefits of any existing arrangement continuing.