Jersey Finance visits India for tax conference and to highlight expertise

Jersey Finance is represented at one of the most important global taxation conferences in India later this week.

A Jersey Finance delegation is in Delhi and Mumbai (27 November – 5 December) to meet with a number of intermediaries and to take part in the International Taxation Conference 2010. Jersey Finance is sponsoring the official conference dinner on Thursday and representatives will be manning a stand during the day.

The International Taxation Conference is organised by the Foundation for International Taxation, an independent not for profit organisation, and has become an established event on the international calendar attracting high calibre speakers with a detailed knowledge of taxation issues and delegates from many of the world’s leading financial centres.

Two Jersey based practitioners who are part of the delegation, Neel Sahai, Director and Gavin Wilkins, Head of Fund Services at Minerva Jersey, will be speaking at the conference in a session entitled ‘Funds and Listing vehicles – why Jersey?’

Geoff Cook, Chief Executive of Jersey Finance Ltd., who is leading the delegation, commented:

‘The purpose of this visit is to highlight the capabilities of our finance centre and to explain how we act as a gateway to European investment. We will emphasise Jersey’s high regulatory standards, legal and regulatory features and our general appeal to international investors.’

In advance of opening an office in Mumbai next year, its important that Jersey has a visible presence whenever possible; that we continue to meet key business contacts and participate in conferences which have relevance to the services we offer and where we can outline our high standards.’

ActionAid exposes tax dodging by UK brewing giant SABMiller, owners of Grolsch

Giant UK-based brewer SABMiller , the company that owns Grolsch, is avoiding an estimated £20m of taxes in Africa and India every year - enough money to educate a quarter-of-a-million African children, according to ActionAid's new report, released today.

The report, Calling time: why SABMiller should stop dodging taxes in Africa reveals for the first time how the company, the world’s second biggest brewer, uses a complex system of tax havens to siphon profits out of subsidiaries in developing countries, depriving those governments of significant amounts of tax.

Martin Hearson, a tax specialist at ActionAid and the co-author of the report, said:

“SABMiller conducts its tax affairs behind a veil of secrecy. The company and its subsidiaries siphon money away from African countries and into tax havens in Europe, where the tax rates are far lower. SABMiller is playing the system to avoid paying its fair share of tax in developing countries.”

In Ghana, ActionAid found that SABMiller’s brewery has paid no corporation tax at all for the last two years.

“The most shocking part of this story is not the huge amounts of tax avoided, but the fact that one woman selling beer outside SABMiller’s brewery in Ghana paid more income tax last year than the multi-million pound brewery,” continued Hearson.

“SABMiller should stop using tax havens to drain money out of Africa. Instead it should aim to become a market leader for tax justice.”

Ghana, along with other developing countries, is trying to develop its tax system to fund essential services including schools and hospitals. The more money it can raise in tax, the less it needs to do to rely on aid to pay for public services.. But while small businesses and traders are being brought into the tax system, big companies like SABMiller use their superior resources and multinational structures to find ways of avoiding tax.

One way in which SABMiller avoids tax is by holding valuable trademarks for African beers in Europe rather than in their country of origin. The cost of using the trademarks helps eat into the profits in the African subsidiary, so less tax is paid there.

Other ways of avoiding tax include paying “management fees”, mostly to Switzerland, and routing its procurement services via a subsidiary based in Mauritius.

ActionAid has launched a campaign demanding that SABMiller stop using tax havens and that tackling tax avoidance should be a top priority for the company’s corporate responsibility programme.

ActionAid also wants SABMiller to make its tax affairs more transparent by publishing a basic set of accounts in every country in which it operates. This would act as a deterrent to tax dodging as companies currently use tax havens in secrecy and with impunity.

Hearson concluded: “SABMiller sells billions of pounds worth of beer in Africa alone. Its CEO has even said paying tax is one of the biggest contributions companies can make to developing countries.

“Yet the truth is that SABMiller has avoided paying millions of pounds in tax to some of the poorest countries in the world. This has to change in order to avoid the charge of hypocrisy. Grolsch drinkers are entitled to expect better from a company that claims to be committed to sustainable development.”

Paradisi Perduti – Come i Paesi offshore stanno affossando l’economia mondiale

La Campagna per la riforma della Banca mondiale (CRBM) lancia la sua nuova pubblicazione “Paradisi Perduti – Come i Paesi offshore stanno affossando l’economia mondiale”, realizzata in collaborazione con il mensile Altreconomia, di cui è allegato del numero di novembre. Paradisi perduti è scaricabile dal sito di CRBM cliccando QUI . A seguire la presentazione del rapporto.

Sono tanti e sono ovunque, nei Caraibi ma anche negli Stati Uniti e in Europa. Aiutano il ricco per levare al povero, approfittando di legislazioni compiacenti e di una miriade di trucchi contabili. Sono i paradisi fiscali, il cui impatto sull’economia mondiale è talmente esteso che si fa fatica a quantificarlo. Paradisi perduti prova a spiegare come funzionano, le loro mille sfaccettature, la loro storia e come si stia facendo troppo poco per debellarli. Anche perché tanti Paesi del Nord del mondo non hanno voglia di mettere il bastone tra le ruote alle loro multinazionali, che senza paradisi fiscali non sarebbero così ricche e potenti.

Mauritius: Domestic Workers (Remuneration) Regulations 2010

Government Notice No. 223 of 2010

THE EMPLOYMENT RELATIONS ACT 2008

Regulations made by the Minister under section 93 of the

Employment Relations Act 2008

1.      These regulations may be cited as the Domestic Workers (Remuneration) Regulations 2010.

2.         In these regulations —

"caretaker" means a worker who is employed in an apartment house and is required to perform one or more of the following duties —

(a)       clean and maintain the yard of an apartment house;

(b)       clean and maintain the common parts of the apartment house, including staircases;

(c)        check all the lights of the apartment house and replace fused bulbs;

(d)       clean and maintain all drain pipes, outlets, manholes, grease traps, gullies and other related equipment;

(e)       clean and disinfect all water tanks and garbage dumps;

(f)        operate electric water pumps;

(g)       any other cognate duties;

"cook" means a worker who is required to perform one or more of the following duties —

(a)       prepare and cook food for the household members and guests;

(b)       serve food to the household members and guests;

(c)        be responsible for —

(i)         the cleanliness of the place of work; and

(ii)        the cleanliness of the crockeries, cutleries, plates and utensils under his care;

(d)       perform any other cognate duties;

"domestic worker” means a worker listed in the first column of the First Schedule;

“driver" means a worker who holds a driving licence and who is required to perform one or more of the following duties —

(a)       drive a car for the transport of members of the household or any other person at the request of the employer;

(b)       run errands;

(c)        be responsible for the daily maintenance and cleanliness of the car;

"earnings"—

(a)       means basic wages; and

(b)       includes —

(i)         wages for work done in excess of a normal day’s work or on a public holiday;

(ii)        remuneration paid under paragraphs 2, 5, 6, 7(1)(a), (3) and (6), 8 and 13 of the Second Schedule;

"gardener" means a worker who is required to perform one or more of the following duties —

(a)       plant, treat and cultivate flowers, shrubs, trees and vegetables;

(b)       mow lawns;

(c)        trim hedges;

(d)       maintain paths and gardens;

"garde-malade" means a worker who is employed for the purpose of looking after a sick or a disabled person;

"house" —

(a)       means a private dwelling or a bungalow;  and

(b)       includes the land attached to the private dwelling or bungalow;

"household worker" means a worker who is required to perform one or more of the following duties —

(a)       undertake manual work in a house;

(b)       run errands;

(c)        baby-sit;

"household worker/cook” means a worker who is required to perform one or more of the duties of a cook and of a household worker;

“part-time worker” means a domestic worker whose normal weekly working hours are less than those specified at paragraph 1 of the Second Schedule.

3.         (1)       Subject to the other provisions of these regulations, every domestic worker shall be —

(a)       remunerated at the rates specified in the First Schedule; and

(b)       governed by the conditions of employment specified in the Second Schedule.

(2)       The rates specified in the First Schedule are inclusive of the appropriate additional remuneration payable under the Additional Remuneration (No. 2) Act 2009.

4.         An agreement by a domestic worker to relinquish his right to a paid holiday or to forego such leave shall be void.

5.         (1)       Nothing in these regulations shall prevent an employer from —

                        (a)       paying a domestic worker remuneration at a rate higher than that specified in the First Schedule; or

                        (b)       providing him conditions of employment more favourable than those specified in the Second Schedule.

(2)       No employer shall —

            (a)       pay a domestic worker remuneration at a rate lower than that specified in the First Schedule;

            (b)       alter a domestic worker’s conditions of employment so as to make them less favourable than those specified in the Second Schedule.

6.         The Domestic Workers (Remuneration Order) Regulations 1983 are revoked.

7.         These regulations shall come into operation on 1 December 2010.

Made by the Minister on 23 November 2010.

FIRST SCHEDULE

[Regulation 3(1)(a)]

Category of worker	Monthly basic wages	Hourly rate
	(Rs)	(Rs)
Cook	4,225	20
Driver	6,150	30
Gardener	5,000	24
Garde-malade	5,100	16
Household worker	4,025	19
Watchperson	5,500	18
Household worker/cook	4,600	22
Caretaker	5,000	24

_______________

SECOND SCHEDULE

[Regulation 3(1)(b)]

1.         Normal working hours

(1)       A normal working week for a domestic worker, other than a watchperson and a garde-malade, shall be of 48 hours.

(2)       A normal working day for every domestic worker, other than a watchperson and a garde-malade, shall be of 8 hours to be performed between 6 a.m. and 10 p.m.

(3)       (a)       The normal working day for a watchperson and a garde-malade shall consist of 12 hours.

(b)       A watchperson or a garde-malade who works regularly on Sundays shall be entitled to 3 days' leave without pay in every month, one of the days being a Sunday.

(4)       Every domestic worker shall be entitled on every working day to a lunch break of one hour.

2.         Extra work

(1)       A domestic worker, other than a watchperson or a garde-malade, shall be remunerated at —

(a)       one and a half times the basic rate for work done in excess of 8 hours or after 10 p.m. on any day other than a public holiday;

(b)       twice the basic rate for the first 8 hours' work performed on a public holiday before 10 p.m.;

(c)        three times the basic rate for work done in excess of 8 hours or after 10 p.m. on a public holiday.

(2)       A watchperson or a garde-malade who —

(a)       performs more than a normal day's work on any day, other than a public holiday, shall be remunerated at one and a half times the basic rate;

(b)       works on a public holiday shall be remunerated —

(i)         for the first 12 hours, at twice the basic rate;

(ii)        thereafter, at three times the basic rate.

3.         Notional calculation of basic rate

In calculating the remuneration payable to a domestic worker —

(a)       a month shall be deemed to consist of 26 days;

(b)       the basic hourly rate shall be the appropriate rate specified in the First Schedule or the rate actually paid to the domestic worker, whichever is the higher.

4.         Payment of wages

(1)       Every employer shall pay the wages due to a domestic worker during working hours, not later than the last working day of the pay period.

(2)       Every employer shall cause every domestic worker, to whom remuneration is paid, to sign or affix his thumbprint to a remuneration book stating the particulars of the remuneration paid.

5.         Extra remuneration for public holidays

(1)       Where a domestic worker, other than a monthly paid worker, remains in continuous employment with the same employer for a period of 12 consecutive months, that worker shall be entitled, in the following 12 months, to a normal day's pay in respect of every public holiday, other than a Sunday, that occurs while he is in the service of the employer and on which he is not required to work.

(2)       Where a domestic worker who would otherwise have been entitled to a normal day's pay under subparagraph (1) or a monthly paid domestic worker is required to work on a public holiday, other than a Sunday, that domestic worker shall be paid at the end of the next pay period one normal day's pay in addition to any remuneration due under paragraph 2.

6.         Annual and sick leaves

(1)       Where a domestic worker is required to work not less than 6 days in a week and has been in continuous employment with the same employer for 12 consecutive months, that worker shall be entitled during the following 12 months to -

(a)       14 days’ annual leave; and

(b)       21 days’ sick leave, on full pay.

(2)       Where a part-time worker is required to work less than 6 days in a week, that domestic worker shall be entitled to leave computed in accordance with the following formula —

N/W x number of days of leave granted under subparagraph (1), where "N" means the number of days that worker  is required to work in a week, and "W" means the number of working days in a week of a comparable full-time worker.

(3)       Where a domestic worker absents himself on grounds of sickness, that worker shall notify his employer on the first day of absence, and if he remains sick for more than 3 consecutive working days, he shall forward to his employer a medical certificate —

           

            (a)       on the fourth day of absence; or

            (b)       where the domestic worker is admitted to a hospital, public or private, within 3 days following his discharge.

 (4)      An employer may, at his own expense, cause a medical practitioner to examine a domestic worker who is absent owing to sickness.

7.         Maternity benefits

(1)       A female domestic worker who remains in continuous employment with the same employer for a period of 12 consecutive months immediately preceding her confinement shall, on production of a medical certificate, be entitled to —

(a)       12 weeks' maternity leave on full pay to be taken either —

(i)         before confinement, provided that at least 6 weeks' maternity leave shall be taken immediately following the confinement; or

(ii)        after confinement; and

(b)       an allowance of 2,000 rupees payable within 7 days of her confinement.

(2)       Where a female part-time worker remains in continuous employment with the same employer for a period of 12 consecutive months immediately preceding the beginning of leave, she shall, on production of a medical certificate, be entitled to an allowance computed in accordance with the following formula —

N/W x amount specified in subparagraph (1)(b), where “N” means the number of days of work she is required to perform in a week and “W” means the number of working days in a week of a comparable full-time worker.

(3)       Where a female domestic worker who remains in continuous employment with the same employer for a period of 12 consecutive months gives birth to a still-born child and the still-birth is duly certified by a medical practitioner, she shall be entitled, upon the recommendation of her medical practitioner, to  opt either for -

                        (a)       2 weeks’ maternity leave on full pay; or

                        (b)       12 weeks’ maternity leave on full pay.

(4)       Where a female domestic worker opts for 12 weeks’ maternity leave on full pay under subparagraph (3)(b), it shall be deemed that she has taken paid leave due for one confinement.

(5)       A female domestic worker who has, at any time, had 3 confinements  or reckons less than 12 months’ continuous employment shall not be entitled to the benefits specified in subparagraph (1)(b) but  shall be entitled to the maternity leave specified in subparagraphs (1)(a) or (3) as the case may be, without pay.

(6)       Where a female domestic worker suffers a miscarriage, which is duly certified by a medical practitioner, she shall be entitled to 2 weeks’ leave on full pay immediately after the miscarriage.

(7)       (a)       A female domestic worker who is nursing her unweaned child shall, for that purpose, be entitled every day at a time convenient to her and having regard to the needs of the child to at least —

(i)         2 breaks of half-hour; or

(ii)        one break of one hour.

(b)       The break specified in subparagraph (a) shall —

(i)         be for a period of 6 months from the date of confinement or such longer period as may be recommended by a medical practitioner; and

(ii)        not be deducted from the number of hours of work of the female worker.

8.         Wedding leave

            Where a domestic worker remains in continuous employment with the same employer for a period of 12 consecutive months, that domestic worker shall be entitled to 3 days’ wedding leave on full pay on the occasion of the celebration of the worker’s first religious or civil marriage.

9.         Protective clothing and equipment

(1)       Every employer shall provide —

(a)       two aprons every year  to every household worker, cook or household worker/cook; 

(b)       one pair of boots and 3 pairs of gloves every year to every gardener working under not less than a 5-day week contract; and

(c)        a serviceable flashlight to every watchperson performing night duties.

(2)       The protective clothing and equipment provided under subparagraph (1) shall remain the property of the employer.

10.       Travelling benefits and facilities

(1)       An employer shall, where the distance between a domestic worker’s residence and his place of work exceeds 3 kilometres, provide him with free transport from the residence to the place of work and from the place of work to his residence, or pay him the equivalent of the return bus fare.

(2)       An employer shall, irrespective of the distance between a domestic worker’s residence and the place of work, provide him with free transport from his residence to the place of work and from the place of work to his residence, where the worker is required by his employer to attend or cease work at any time when no public service bus is available.

(3)       Subject to subparagraph (2), where the distance between a domestic worker’s residence and his place of work exceeds 3 kilometres and where he attends work by his own means of transport, he shall be entitled to an allowance equivalent to the corresponding return bus fare.

11.       Meal Allowance

(1)          Where a domestic worker is required to work —

(a)          beyond 6.00 p.m. after  the completion of a normal day’s work;

(b)          at a place other than his normal place of work;

that worker shall,  in addition to any payment due under paragraph 2, be provided with an adequate free meal or a meal allowance of 50 rupees.

(2)          Every employer shall make necessary arrangement for the provision of an adequate free meal in circumstances in which the domestic worker may otherwise be deprived of a meal.

(3)       The meal allowance shall be paid to the domestic worker before the performance of the extra work.

12.       Disturbance Allowance

(1)       A domestic worker who is required by his employer to work at a place other than his normal working place shall be entitled to an allowance of not less than 50 rupees daily.

(2)       No domestic worker shall be compelled by his employer to work in and stay outside his normal place of employment for a period exceeding 3 consecutive days.

13.       Vacation Leave

(1)       A domestic worker who remains in continuous employment with the same employer for a period of at least 10 years, shall be entitled to a vacation leave of not less than 2 months to be spent wholly or partly abroad, or locally, at the worker’s discretion.

(2)       Subject to subparagraph (1), at least one month of the vacation leave shall be with pay, and such pay shall, in case the domestic worker intends to spend the vacation wholly or partly abroad, be effected in advance and at least 7 days before he proceeds abroad.

(3)       A vacation leave shall be deemed to constitute attendance at work.

14.       Gratuity at death

(1)       Subject to subparagraph (2), where a domestic worker dies, an employer shall pay a gratuity to the spouse of the deceased worker or, where there is no surviving spouse, in equal proportions to the dependants of the deceased worker, irrespective of any benefits the spouse or the dependants of the deceased worker may be entitled to under the National Pensions Act.

(2)       A domestic worker referred to in subparagraph (1) shall have been in continuous employment with the same employer for a period of not less than 10 years.

(3)       The gratuity referred to in subparagraph (1) shall be —

(a)       calculated on the basis of 15 days’ remuneration for every period  of 12  months’ continuous service  of the deceased worker; and

(b)       paid in a lump sum.

(4)       In this paragraph —

“continuous service” shall be computed as from the first day of the period during which a deceased worker has been in continuous employment with the same employer up to his last day of employment;

“remuneration” —

(a)       means all emoluments, in cash or in kind, earned by a domestic worker under an agreement;

(b)       includes any sum paid by an employer to a domestic worker to cover expenses incurred in relation to the special nature of his work;

“spouse” means the person with whom a deceased worker had contracted a civil or religious marriage and with whom he or she was living under a common roof at the time of the worker’s death; and

“dependant” means any person who was living in a deceased worker's household and was wholly or partly dependent on his earnings at the time of his death.

15.       End of year bonus

(1)                          Where a domestic worker remains in continuous employment with the same employer in a year, the worker shall be entitled at the end of that year to a bonus equivalent to one-twelfth of his earnings for that year.

(2)       Every domestic worker who —

(a)       takes employment during the course of the year;

(b)       is still in employment as at  31 December; and

(c)        has performed a number of normal days' work equivalent to not less than 80 per cent of the working days during his employment in that year,

shall be entitled at the end of that year to a bonus equivalent to one-twelfth of his earnings for that year.

(3)       Seventy-five per cent of the expected bonus specified in subparagraphs (1) and (2) shall be paid not later than 5 clear working days before 25 December and the remaining balance not later than on the last working day of the same year.

(4)       For the purpose of this paragraph, a day where a domestic worker —

(a)       is absent with the employer's authorisation;

(b)       reports for work but is not offered work by the employer; or

(c)        is absent on grounds of —

(i)         illness after notification to the employer under paragraph 6(3); or

(ii)        injury arising out of and in the course of his employment,

shall count as a working day.

_______________

IOSCO Publishes Final Report on Guidelines for the Regulation of Conflicts of Interest Facing Market Intermediaries

The last few years have seen a significant growth in the involvement of market intermediaries in the financial market, which has led to increased complexity in the range of business services provided as well as the usage of financial products and instruments. The recent financial crisis and several corporate scandals have given rise to concern over the conduct of market intermediaries due to their inherent agency structure that gives rise to conflict of interests. Many cases have arisen where intermediaries are not acting in the best interests of their clients. Further, due to providing a wide range of services, market intermediaries are prone to conflicts of interest, which can lead them to diverge from adopting strategies and behavior to benefit their clients.

The evolving market scenario combined with an enhanced role of globalization in financial markets has prompted regulators to find improved regulations to address conflicts of interests faced by market intermediaries which pose a risk to the health of any financial system. There are apprehensions over the methods and strategies adopted for the regulation of market intermediaries to manage conflict of interests. Regulators have been criticised by various sections for using soft regulation in relation to market intermediaries. The increased role of globalization in the financial markets has also led to circumstances which have called for greater alignment in the regulatory scope of different jurisdictions. Therefore, regulation of financial markets needs to be developed with a focus on commonly accepted rules for the regulation of conflicts of interest. Consequently, an increasing number of the members of the International Organization of Securities Commissions (IOSCO) are in the process of adopting new regulations, to target conflicts of interest.

The Emerging Markets Committee (EMC) meeting held on 5 November 2009, mandated the Emerging Markets Committee's Working Group 3 (EMCWG3) on Supervision of Market Intermediaries to develop, for emerging markets regulators, Guidelines for Regulation of Conflicts of Interest Facing Market Intermediaries.

Market intermediaries provide a range of services and are hence placed at an informational advantage over other players in the financial market. Imperfections in the financial market and asymmetry of information are the prime reasons which can lead to the exploitation of conflicts of interest by market intermediaries. Difficulties with the regulation of conflicts of interest faced by market intermediaries arise due to problems in identifying all the situations which can cause a conflict. Robust regulation of conflicts can take away the advantages a market intermediary possesses through the means of economies of scope. On the other, hand light touch regulation will create an incentive for intermediaries to exploit their clients, which would lead to a loss in investor confidence. Therefore, the regulatory framework should create a balance between the two and most importantly aim to affect the behavior of the management of an intermediary through emphasizing the importance of adopting strict internal control measures to avoid conflicts of interest from arising.

This report examines the role of market intermediaries in financial markets and highlights different scenarios where conflicts of interest can take place. The report goes on to identify remedies and create suitable guidelines which can be used by EMC jurisdictions for better management of conflicts of interest.

Learn the lessons of AIFMD, Richard Saunders of IMA says

Speaking at the Lawyer Funds Summit in Brussels, Richard Saunders, Chief Executive of the Investment Management Association, called on the UK Government to learn the lessons of the Alternative Investment Fund Managers Directive (AIFMD) in future negotiations on EU legislation.

Richard Saunders said:

"We need the UK Government to raise its game in Europe. The legislation which will shape our financial services industry in the future now comes from Brussels and effectively bypasses the UK Parliament. The AIFMD illustrates that. The UK has always been good at detail, but less strong in playing the big political game.”

Commenting on the original version of the AIFMD in April 2009, Richard Saunders said:

“The UK seemed oblivious to what was going on behind the scenes, playing by the rules of cricket, while everybody else was playing by the rules of ice hockey. To make matters worse, the UK Government had given up its leverage by pledging support to Mr Barroso for his reappointment as President of the Commission some six months previously.”

He paid tribute to the European Commission’s initial approach:

“The European Commission’s initial consultation paper about hedge funds was very cautious about the need for new regulation, emphasising the need for proportionality and the peripheral role played by hedge funds in the crisis.”

But this was undermined by political considerations:

“Politics took over. The draft Directive published at the end of April bore no relation to drafts circulating only weeks before. The promise to address hedge funds as part of the follow-up to the de la Rosière report was forgotten, as was the pledge to respond only to clearly identified market failures and to keep clear distinctions between different types of funds.

“Instead, we had a proposal which applied equally to all non-UCITS funds: hedge funds, private equity funds, investment trusts, real estate funds, institutional pooled vehicles, and many others. What is more, it was blatantly protectionist, and had the extraordinary effect that pension funds and other institutional investors would in future be banned from investing in many vehicles which were now commonplace.”

He praised the Treasury’s efforts to salvage the situation:

“Although the new Coalition Government did an admirable job at the final ECOFIN Council in standing up for the industry’s interests, undoing the very bad starting point of the Directive was beyond its powers. And that reflected a long history of failure to deal effectively with European legislation. Our new Government has got off to a promising start in this respect. They must now build on it.”

Richard Saunders concluded that the final Directive represents a missed opportunity:

“Institutional investors like pension funds really needed a better set of EU wide private placement rules, which would have enabled them to get access to the most suitable products for their needs. They missed out with this Directive.”

A transcript of Richard Saunders’ speech at the Lawyer Funds Summit can be found here.

Mauritius: PM Advocates a Trade Environment Conducive to Competition

At the opening ceremony of a workshop on the competition regime at Intercontinental Hotel in Balaclava this morning, the Prime Minister, Dr Navinchandra Ramgoolam, GCSK, FRCP, pointed out that the role of a Competition Commission is to ensure that innovation and creativity are rewarded while those who seek to enter into prohibited agreements and collusive practices, resulting in the distortion of competition are penalised. He added that nowhere in free market economies are predatory strategies and abuse of monopoly allowed to thrive.

The workshop is being held at the initiative of the Competition Commission on the occasion of its first anniversary.

The objective of the Competition Commission of Mauritius (CCM) is to create an environment conducive to competition and to stop anti-competitive practices and abuse of dominant power, so that we can have, as far as possible, a level playing field, underlined the Prime Minister.

Dr. Ramgoolam stressed that the vision of the Government is to achieve the following two important objectives, first sustain economic activity in the country through increased investments both local and foreign and secondly the enhancement of consumer welfare obtained through the availability of a larger variety of goods, of improved quality and at better prices in the market.

The setting up of a Competition Commission was also in the wider context of the opening up of the economy and the further deregulation of our internal markets which are essential measures to allow Mauritius to cope with the new imperatives of globalization and liberalization, recalled the Prime Minister.

The Competition Commission of Mauritius is a statutory body established in 2009 to enforce the Competition Act 2007. This Act established a competition regime in Mauritius, under which the CCM can investigate possible anticompetitive behavior by businesses.

This Workshop “Competition Regime in Mauritius-One Year On” is animated by Mr. Bruno Lasseres, President of Autorité de la concurrence, France, and Mr. Shan Ramburuth, Commissioner, Competition Commission South Africa, amongst others.