3 Oct 2012

New Caledonia urged to end price controls

2:29 pm on 3 October 2012

The French Competition Authority has recommended that the New Caledonian government abandon its price controls imposed to curb the high cost of living.

The Authority says the mass consumer market is dominated by an oligopoly, meaning very few enterprises are in control.

It also notes a high concentration in the retail market and a high threshold for others to enter.

To remedy this, the Authority suggests changing regulations to ease access and setting up a local watchdog to monitor their implementation.

It also advises that tariffs should be lowered and the surcharges for imports from non-European union countries dropped.

Last year, unprecedented territory-wide mass rallies were held across New Caledonia against the high cost of living.