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Competition Regulatory Authority (Jersey) Law 2001: Request Jersey Competition Regulatory Authority to report on tobacco market

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A decision made 1 February 2013:

Decision Reference:  MD-E-2013-0013

Decision Summary Title :

Request to the JCRA under Article 6(4) of the Competition Regulatory Authority (Jersey) Law 2001 to produce a report examining the  Tobacco Market in Jersey

Date of Decision Summary:

29th January 2011

Decision Summary Author:

 

Strategy Manager, Policy and Regulation

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

n/a

Written Report

Title :

Request by the Minister for Economic Development (JCRA) to produce a report examining the market for the supply of cigarettes and hand-rolling tobacco in Jersey under the authority of Article 6(4) of the Competition Regulatory Authority (Jersey) Law 2001.

Date of Written Report:

17th January 2013

Written Report Author:

Strategy Manager, Policy and Regulation

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject: Article 6 (4) request for the JCRA to examine and report on the tobacco market in Jersey.

 

Decision(s): The Minister approves the attached Article 6(4) request to the JCRA to examine and report on the tobacco market in Jersey.

 

Reason(s) for Decision: The JCRA will undertake a review of the level of pricing, costs and profit of tobacco products and report on the level of competition in the tobacco market in Jersey, with specific reference to exclusive supply agreements.

 

In order to undertake a market study, the JCRA requires access to all relevant information. This request provides the JCRA with powers under Article 26(2) of the Competition (Jersey) Law 2005

 

Resource Implications: The JCRA will meet the cost of the review from its own resources, so this decision will result in no resource implications. In the event that specific consultancy assistance is required, support for this specific cost may be sought by the JCRA. In this event, funding will be discussed.

 

Action required: The attached request to be sent to the JCRA for its consideration.

 

Signature: Senator A.J.H.Maclean

 

 

Position: Minister

 

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

Competition Regulatory Authority (Jersey) Law 2001: Request Jersey Competition Regulatory Authority to report on tobacco market

Ref: A952J

 

17 January 2013

 

Mr Andrew Riseley,

Chief Executive

Jersey Competition Regulatory Authority

2nd Floor Salisbury House

1-9 Union Street

St Helier

JE2 3RF

 

Dear Andrew,

 

Request by the Minister for Economic Development for the Jersey Competition Regulatory Authority (JCRA) to produce a report examining the market for the supply of cigarettes and hand-rolling tobacco in Jersey under the authority of Article 6(4) of the Competition Regulatory Authority (Jersey) Law 2001.

 

In light of the current public interest surrounding the cost and pricing of tobacco products locally, I have decided to request the JCRA to undertake a study into the market for the supply of cigarettes and hand-rolling tobacco in Jersey, in the terms detailed below.  As this is a request under Article 6(4) of the Competition Regulatory Authority (Jersey) Law 2001, it provides the JCRA with powers under Article 26(2) of the Competition (Jersey) Law 2005 to require the provision of information, etc.

 

The aims of the review should be as follows:

 

  1. To undertake an analysis of prices, costs and profits at the importation, wholesale and retail levels of the supply of cigarettes and hand-rolling tobacco in Jersey;

 

  1. To produce a report on the level of competition in the supply of cigarettes and hand-rolling tobacco in Jersey, with specific reference to exclusive agreements, making any such recommendations for changes or improvements that might be considered.

 

The scope of the review should cover cigarettes and hand-rolling tobacco. In particular, it is requested that the report:

 

  1. Compares the average wholesale and retail prices for cigarettes and hand-rolling tobacco sold in Jersey with prices charged in the United Kingdom and any other relevant jurisdictions based on available data;

 

  1. Gives consideration to regulations in respect of the import and supply of cigarettes and hand-rolling tobacco in Jersey, as well as the States of Jersey Tobacco Strategy, and whether they impact on competition;

 

  1. Considers and reports on any other relevant matters that may arise during the course of the JCRA’s review.

 

The JCRA will endeavour to complete this project by May 2013. The JCRA has discretion in deciding whether to publish any findings, the level of detail of the same and in what form any such report or publication will be published, balancing issues of accountability, effectiveness and confidentiality. If possible, the JCRA will meet the cost of the review from its own resources, although I will consider requests for assistance should any arise. Expenditure which the JCRA may hope to reclaim from the Department must be approved by me before any commitments are made.

 

Yours sincerely

 

 

 

 

Senator Alan Maclean

Minister for Economic Development

 

 

 

 

 

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