The construction sector is to be reviewed by the Jersey Competition Regulatory Authority, with a view to understanding if there are any competition issues for the Authority to consider.
Construction represents nearly 8% of the Jersey economy, with over 10% of the Island’s workforce engaged in the sector. It is a sizeable market of considerable economic value – the effective operation and sustainability of the sector is key to the Jersey economy.
A case opening statement has been published today, outlining the approach to the review, which is broadly to consider market characteristics, features or otherwise that potentially impact competition.
A sector review is a flexible tool to explore whether a sector is working well for Jersey consumers. It is important to note that this review concerns the structure, operation and behaviour of the sector, not the action of any specific business or firm.
Tim Ringsdore, Chief Executive Officer at the Authority, said: “This review is being launched in the context of both significant upcoming construction projects, and recent changes in the market structure. Given the significance of construction to the economy it is important we know whether there are any competition issues to consider, and whether the market is working in the interests of Jersey’s consumers.
“There will be an opportunity for consumers and businesses to provide feedback on our work during the coming months. The output from the review will inform our further work in this area, which is likely to take the form of separate follow up projects such as targeted market studies, or advocacy work. These will help ensure the sector continues to work in the best interests of consumers and the Island economy.”
Formal work on the review will start in September 2024 and completion is expected by the end of 2025.
