Abolish the Office of Fair Trading - an ineffective organisation.

Economists have long debated the issue of monopolies / duopolies because of their ability to manipulate pricing to maximise profits and accrue unfair / excessive advantages compared with a more open, more competitive market with many firms competing.

The IOM, due to the small size of our population is inevitably faced with many firms enjoying monopoly or duopoly status - just one or two firms in a given market (eg  petrol, telecoms, gas supply, Steam Packet, even car franchises - only one agent for Ford, Toyota, BMW etc) - with the ability to abuse their situation to the disadvantage of consumers. 

The OFT includes the responsibility to investigate pricing complaints on behalf of Govt yet has no powers to enforce action such as price reductions following any investigation - indeed, reports into the pricing of gas, petrol and Steam Packet fares have always resulted in "nothing found untoward" reports.  As such, it is self evident that the OFT is ineffective and toothless - so why not just abolish the department ??

 

Why the contribution is important

Removing the entire department would remove multiple jobs with significant revenue savings.

Much of their workload could be covered by the voluntary sector (Citizens Advice Bureau for example) - whilst DED should be capable of carrying out the occasional monopoly / dupoly pricing investigations of any alleged abuses of power.

by Grumpy on May 14, 2017 at 10:54PM

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