THERE was no doubting from the interview he gave last week that Guernsey’s regulator is very keen to be given powers via a competition law to be able to examine island prices in areas other than post, electricity and telecommunications.

Islanders are rightly wary of increased legislation and the creeping influence of bureaucrats. And the last thing business needs now is extra red tape and more interference from officialdom.

However, this is an expensive place to live and closed communities are historically exposed to the influence of near- or actual monopolies.

A recent report indicated that food prices here are a third more expensive, a claim swiftly rejected by the leading supermarkets. So who is right?

Similarly with fuel and alcohol. The lower duty rates here mask a much higher level of profit taking compared with the UK and the price of a pint is regularly cheaper in England.

In short, islanders know they pay more for virtually everything. The issue is whether the on-costs are fair and reasonable – and what they are made up of.

The mass flight towards off-island shopping, particularly via the internet, demonstrates that Guernsey people are price-sensitive, although most are keen to support local businesses.

What a competition law would enable is an independent assessment to be made of key areas of expenditure and for a judgement to be made whether prices are higher and, if so, what the justification for that might be.

It is an important issue. If, for argument’s sake, goods in shops are 30% more than in the UK or Jersey is that because the business is making excessive profit or is it a result of punitive rents, staff costs and freight?

Such clarity would be reassuring for islanders and beneficial for businesses because customers would have confidence that they were not being ripped off.

The other benefit – as has been seen with fuel prices – is that when investigations are held and trade agreements on recommended prices are removed, costs come down.

An appropriate competition law would quickly enable consumers to buy with confidence and is now long overdue.