The purchase of the Safeway stores in Jersey and Guernsey by the owners of the Checkers chain has dismayed the Deputy, whose committee proposed the new Competition Law which came into effect on 1 May.
Under the new rules the £51m deal would have been referred to the Jersey Competition Regulatory Authority and could have been blocked here.
It was announced just hours before the new law came into effect and while the JCRA is to investigate the exact circumstances and timing of the deal it appears unlikely that it could be retrospectively undone.
Deputy Voisin is in no doubt that the timing was deliberate.
‘I’m dismayed at the cynical manner in which the purchase was announced just hours before the Competition Law came into effect.
The JCRA will no doubt wish to ensure that there has been no breach of the requirements of the new law,’ he said.
The competition regulator has also been asked to carry out an investigation into the Island’s retail market, to consider the impact on prices and competition of the controversial deal which leaves just the Co-op supermarkets competing with CI Traders.
Deputy Voisin said: ‘To be quite honest I think the loss of the third competitor in the market is going to prompt calls for an alternative supermarket competitor to come to the Island.’ He believes there is outside interest from companies such as Tesco – which already has a presence in the Island with its CD and DVD export business – and French retail giant Carrefour are also known to have been looking at the Channel Islands for expansion if a daily freight service with Normandy can be provided.
