Fair Trading Bill passed in Senate

Valley said that while it may be inconvenient for businesses to have to deal with “another layer of bureaucracy” (which the bill imposes), it was in the social interest. He said Government hopes the bill will have limited duration.

“The more we liberalise, the more we will get rid of these bureaucratic structures and competition will become the only discipline for companies,” he said. But, he noted, the country was not yet at that stage.

He said the bill would deal with predatory pricing, thereby preventing firms from trying to drive out competitors from the market by excessively lowering prices. It would also deal with monopolistic (high) pricing.

During debate on the bill, Valley announced that Government proposes to amend the law to make statutory authorities directly accountable to the Joint Select Committee (JSC) of Parliament for their management. Under the current system, the statutory authorities are accountable to the JSCs, not directly, but through their respective ministries.

The ministry and its key personnel, including the line minister face the JSC. But Valley disclosed that Government would amend the legislation to give the JSCs “two bites at the cherry”.

The statutory authorities would now report directly to the JSC, as well as through their ministries. He also revealed that the Fair Trading Commission, which is to be established under the Fair Trading Commission Bill, would also report to the JSC.