Reunion: Bill Against The Cost Of Living Considered By The Council Of Ministers

9 years, 1 month ago - September 06, 2012
Cabinet considers this Wednesday, Sept. 5 Bill Lurel against the cost of living. The text, which is regulation upstream prices and tackles dominant positions overseas satisfies neither the local nor the social partners. But Victorin Lurel wants to go fast. And it passes.

Nearly four months after the appointment of Victorin Lurel the Ministry of Overseas press the government not on the bill against the cost of living. Since the visit of the tenant rue Oudinot in mid-July at the meeting, negotiations and express confidence were held between the government and local communities.

Today, Victorin Lurel wants to go fast. His bill, which should be considered by the Council of Ministers on 19 September, finally today. The purpose of this acceleration is that the text goes into the state. Its strategy is to enclose the lobbying made by his opponents in a tight schedule. While Victorin Lurel tackles head-on the anti-competitive practices and what remains of savings counter in Dom, as saying that some have to lose.

The text prepared by the Minister of Overseas has eleven points to abolish monopolies and other dominant positions in the overseas, particularly in the area of ??retail. It aims to rebalance the competition on all ultra-marine territories sanctioning any abuse. It offers first a small revolution for ultra-marine markets consist of the prohibition of exclusive import rights if they are not "justified by economic objectives" Such a measure would sound the end of the official distributors who determine in their discretion the price of the products they represent, both in the automotive, food as alcohol or tobacco.

In the same spirit, the bill intends to impose on "monopolies or oligopolies" set prices "non-discriminatory" for goods deemed "essential" to allow access to the market to competition. The goal is to allow as many resellers access to all products. 

Otherwise, the Competition Authority may be entered. It will also have a "structural injunction power for widespread distribution." The text allowing local "to send the Minister of Economy request" to enter the Authority if they find the "anticompetitive practices".

Other restrictive measures in respect of retail, Victorin Lurel proposes lowering to 5 million threshold for merger control in the retail trade (against 7.5 million currently). This provision would sift through all the divestiture, merger or partnership for stores of more than 600m2.

Unsurprisingly, broadcast Victorin Lurel the content of his bill last week caused an outcry. The regional council, first of all, has, without giving any opinion on the merits, rejected the text block, considering that the emergency procedure in which the government was using did not allow "the necessary consultation with local ". A choice that would have led, by Region, to propose a text "incomplete, imperfect and therefore unsatisfactory." The Standing Committee of the community has asked the government to suspend consideration of the bill regarding the section on economic regulation, pending the Economic and Social Forum which allow all partners express themselves and make their proposals.

The councilors, meanwhile, have officially recorded a common position of validating the principle of law Lurel, while demanding "clarification" of "information" or even "amendments" are made to the text. The PCR-elected group Alliance regretted that "the issue of returning to our island, the diversification of our sources of supply, and prices of essential commodities are not taken into account globally."

The side of the employers, the MEDEF meeting is very hostile to the project Lurel. Its president, Yann Prince, said he "explained the Minister's office that companies Reunion were struck by the method that is to enact legislation before the consultation." Yann and Prince added: "Nobody can deny that the government wants to put an end to abnormal if they exist, but be careful not to fall into the stigma of Dom." For the president of MEDEF meeting, a law on prices "will not reduce unemployment, create or activity." "not an appropriate response to the problem"

Same story with the FEDOM (Federation of Enterprises Overseas), which estimates that the project does Lurel "is not an appropriate response to the problem of price level in the overseas departments." For the federation, the project "stigmatized" the supermarkets, accusing him of being primarily responsible for dear life. The FEDOM believes that "the possibility for the competition authority to proceed by injunction to compel a company to sell a subsidiary to a competitor in the event of a dominant position, not necessarily abusive, is a measure that, in addition to its uncertain legal basis would create an unsafe situation unfavorable to investment and development companies involved. "

Only trade unions are more moderate. Ivan Hoarau, general secretary of the CTR, considers that the draft Lurel "is not uninteresting to the extent that it points to the need to raise the price formation chain, he says. There is a willingness to see a little more clearly. " But the union representative, Victorin Lurel shows too much confidence in competition. "Certainly it takes., But on a small island territory, you can not rely on the competition," said Ivan Hoarau.

Finally, the project will not result in his effects in the medium and long term, and therefore does not respond to "social emergency". 

According to Maurice Cerisola, President of the current economic Meeting in Paris, last minute changes potentially significant, have been made to the text. "The government wants to keep the first for the Council of Ministers, said Maurice Cerisola. Therefore we do not know if it has been taken into account our remarks or whether the text has been cured." Maurice Cerisola had expressed concern, in particular, the project Lurel deters investment in Dom Séverine Dargent

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