Friendly

Editorial

Friendly competition is a cut-throat business

WHOEVER said business was easier in the Pacific must have had their head screwed on backwards.

What with dealing with monopo lies, trying to stay on top of ever increasing utility costs, limited mar kets, and the high freight and distrib ution costs, life can be a total night mare. In Fiji, the catch phrase at the moment is competition. You hear it everywhere, and out of almost every

politician’s mouth.

Competition, the government says, will help keep businesses in line, and keep prices down.

This from a government which for ever-after has run several monopolies like telecommunications, electricity, water - but has failed to keep prices down.

Now it has found that monopolies are not the way to go, but rather, an open market with several competitors will

decide which company or companies can best do the job.

But several companies, targeting a limited market, do not friendly competi tion make.

In fact, competition has meant that in some cases there is over-supply in the market with limited supply in other areas.

Companies are finding that they put so much energy into competing to stay afloat, that they simply cannot afford to service areas where the profits may not

be marginal. In fact, many people are finding that the market cannot support such competition, and that perhaps the only way to increase efficiency is a merger, or an acqui sition.

Because of high set-up costs for businesses in Fiji, it makes sense to buy out the competition.

With new amendments to the fair trading legislation due to come into

force this month or March, businesses could successfully argue their way through laws pushing anti-dominance of markets.

Indeed, in some cases, it may be preferable to have a monopoly that ser vices the entire community than two or three businesses that target the lucrative sections and leave out the rest.

If friendly competition is a cut-throat business, full-on competition may soon be a living nightmare. ■