The uncertain future of the competition authority in New Caledonia

It is an essential institution to combat the high cost of living that stifles the French abroad. In New Caledonia, the brand new competition authority, created five years ago, has seen the departure of its first president, who will expire on December 31, 2022. Aurelie Zud Le Perry, who joined the National Assembly as an advisor, gives an encouraging assessment of these beginnings after 350 recommendations . “The authority, which was created on the basis of the law of the capital, will be a rather destructive organization in the economic environment of New Caledonia. We were able to install it to spread the culture of competition and impose the idea of ​​having a governance that does its job.” The job is great: On food products alone, the UFC-Que Choisir in New Caledonia estimates that prices are twice as high as in France.

However, the senior official does not hide her concern for the future of the independent authority. His succession at the head of this institution is still uncertain. New Caledonia is characterized by monopolies and a high level of imports, and has the characteristics of a counter economy. During a seminar organized in 2020 in French Polynesia with other national competition authorities, Aurelie Sud-le-Perry noted that dozens of families share 90% of the economy. While foreign direct investment was massive to fund two new nickel plants between 2005 and 2017, outside contribution is now negative in the region, according to the World Bank.

“The strength of the various families of Caledonia is still there. This is a historical heritage, and for there to be newcomers a certain number of barriers must be removed, access to finance should be strengthened, and perhaps the help of the ‘young’ rather than the ‘big’M. explains.^I Zoude-le-Berre. In the aviation sector, we have made a very general recommendation aimed at introducing a system of monitoring public aid granted to companies taking into account their impact on competition. If you lend only to “adults”, you necessarily strengthen their position. However, these aids are not controlled at all. »

Big construction site

The authority suggested that the government of New Caledonia consider a framework for this type of public assistance. “This is being done in the Dominican Republic, for example, which is an island with an independent government and a small competition body. They have just put in place an advice system that has been proposed to the government to assess the impact on competition that some public aid or subsidy might have, before it is granted.”

You have 55.31% of this article left to read. The following is for subscribers only.