The GSD have issued a statement claiming the Government rushed the Communications (Amendment) Act through Parliament "to block competition from another operator, namely Gibfibre."

A statement from the GSD follows below:

Since the Communications (Amendment) Act 2024 was passed by Government majority in Parliament last week it has  come to light that a local operator, Gibfibre, had already invested substantial sums in rolling out its own local mobile  network. Indeed, it appears the Government was aware of Gibfibre’s intention to apply for a licence and also that the  company had already obtained a ‘test and development’ licence as a mobile operator, but failed to mention this. 

The Chief Minister certified urgency for this Bill so it could be taken immediately and not await the constitutional 6- week period before a Bill can be considered. Whilst the rationale for this was argued to be all to do with ministerial  diaries, it now seems clear that this was to block competition from another operator namely Gibfibre to the detriment  of the public. This was not specifically mentioned in Parliament when Ministers explained the rationale of the Bill. In  doing so, they manipulated Parliamentary process in a clear case of political dishonesty, rushing the Bill through as  urgent, with no benefit to the wider public. It is abundantly clear why they did this now. 

While the Government has now issued a press release in reply to Gibfibre, it is clear that it was less than candid about  the fact that the effect of the legislation was to block the efforts of Gibfibre (and any other operator) to get a licence  which may have given better services and benefits to the consumer. The protection of Gibtelecom as a public asset  needs to be balanced with the public interest in ensuring the best service to the consumer and industry. 

This brings into sharp relief the very serious question of the conflict of interest the Chief Minister faces: as Chairman  of the company Gibtelecom and in his primary role as Chief Minister where he needs to consider wider public interests.  

GSD MP Craig Sacarello commented, “when the Bill was debated, we expressed serious doubts about the undermining  of competition and how this would detrimentally affect the consumer and the public. But it is now clear we only had  half of the story and the Government manipulated the Parliamentary process in the interests of Gibtelecom without  clearly explaining that factor. They did so, in a way that calls into question whether they had regard to the public  interest of preserving competition for the consumer. They should have been candid about the motivations of this Bill.  The CM talked about ‘going back to where we were before’. He is only right as far as that this is, undoubtedly, a  backward step. 

There are other better, more productive solutions which would allow for market growth while safeguarding the  interests of the consumer, but these have not apparently been considered or at least, been allowed to be aired. In modern western societies, open market competition leads to greater consumer choice, reduced prices, innovation,  responsive markets, job creation and economic growth. The consumer will ultimately suffer by being deprived of this  right. 

The basic tenet to economic growth is investment. This government is developing a track record of doing its best to  drive investment away at all costs.”