News that the regulatory authorities of both islands are rubbing their hands at the prospect of bringing the ferry service under their control ought to set alarm bells ringing for islanders, if not passengers as well.
Imposing regulation and employing individuals to ensure those rules are complied with has been one of the biggest job creation schemes in the Channel Islands in recent years.
The financial services sector here is now so hag-ridden by the demands of the Guernsey Financial Services Commission, that there is a danger of decent businesses being driven out and that the start-up will be prevented of the sort of operations that have potential to expand into significant players.
Regulation is pointless and unnecessary unless it has a clear purpose and a benefit that is proportionate to the cost involved.
Many – and experiences over the last 18 months or so might make that a majority – believe the GFSC has crossed that threshold. Have regulation, will enforce. It’s certainly a driver among States departments: one complaint? Take down that A-board. Two complaints? Ban kiddies cycling in Saumarez Park. No complaints? Let’s take out Le Friquet Garden Centre on a Sunday anyway…
Ensuring customer value for money and/or virtual competition may have value in the utilities, especially where they are slow emerging from their previous feather-bedded public sector culture.
But what benefit – other than to the regulators – will accrue from spending £100,000 on more ‘quango-servants’ to crawl all over its books?
Owners Macquarie Group sweat assets and will already have taken cost out of the ferry operation. Yes, they also look for good, long-term income and will leverage any monopoly or market dominant position, but only to the point above which aggressive pricing makes it possible for competition to break in.
If the regulators wanted to do something islanders would support they would be probing outrageous legal charges. GP and dental bills could also come into that.
As would building and materials costs. While at it, the OUR could also run a slide rule over food prices and seek justification where VAT is included.
If the regulators really do want to add value, there are better targets than Condor.