2023-07-21 10:25:09
Launched in March 2023 on the initiative of Martinique deputy Johnny Hajjar, the parliamentary commission of inquiry into the overseas cost of living delivered its conclusions on Thursday 20 July. The intimate relationship with the State to initiate a plan of “economic and social shock”. In addition to a system of free ports, several of the proposals aim to remove “the great opacity” of the retail sector and to establish more transparency in the price formation mechanism.
Julie Postollec with AFP • Published on July 21, 2023 at 12:25 p.m., updated on July 21, 2023 at 12:37 p.m.
After four months of work and around fifty hearings, the parliamentary commission of inquiry delivered its report on Thursday 20 July. It was its rapporteur, the Martinican deputy Johnny Hajjar, who summarized it during a press conference at the National Assembly.
To remedy the “historical problem” cost of living in the Overseas Territories, the State must initiate a plan to “economic and social shock”pleads the report. “When the patient is in a state of cardiac arrest, there is no longer any time to take palliative measures”writes the rapporteur Johnny Hajjar, on the initiative of this commission created in February 2023.
Chaired by Guillaume Vuilletet (Renaissance), this commission was tasked with finding solutions to reduce inequalities between France and the overseas territories, where life is more expensive, while the price gap (from 10.3% to 15.8%) has increased from 2015 to 2022, according to an INSEE study published in mid-July.
Prices are higher by “exorbitant manner with regard to food” and many other goods and services in these territories, where “80% of the distribution supply comes from Europe and in particular from France”, recall the deputies. Faced with this dependence, the commission makes a series of proposals.
In addition to a free port system or levers to promote overseas production, several of these proposals aim to raise “the great opacity” of the retail sector and to establish more transparency in the price formation mechanism.
The commission suggests starting negotiations for a maximum of one year with the major overseas distribution groups “in order to obtain a drop of around 10% to 20% in prices on the majority of their references, by reducing the margins of all the players in the distribution chain”. Heard in May, the leaders of the Hayot group, one of the most powerful in Overseas France, had refuted any monopoly and the suspicions of excessive margins made in food distribution.
The committee also pleads for the publication of the accounts to be guaranteed by providing for their automatic transmission to the authorities responsible for competition. In the event of non-compliance, a “deterrent sentence” would fall, “determined as a percentage of turnover, at least 1% thereof”.
It also proposes to condition any concentration operation, which would result in an economic player holding more than 20% of the turnover of an overseas market, to an investigation which would demonstrate the interest for the consumer of this concentration operation.
The committee also proposes “a great productive investment plan”including financial means “exceptional” for at least ten years “induce a shock of activity” et “incite” to private investment.
Established on March 9, 2023, the commission had two objectives: first, to study the mechanisms and causes of the cost of living in our territories; then establish a complete and precise diagnosis to propose solutions in order to permanently lower prices in Overseas France.
A commission of inquiry has several powers, in particular that of summoning any person whose hearing it deems useful, and of requiring him to give evidence under oath. Of the 53 hearings, she thus heard Bruno Le Maire, Minister of the Economy, Jean-François Carenco, former Minister of Overseas Territories, Rodolphe Saadé, CEO of maritime freight company CMA CGM, or even Stéphane Hayot, president of the Bernard Hayot group which owns many companies in the Overseas Territories.
The publication of this report comes in a context of important communication on the Overseas Territories. Cost of living was discussed during the Interministerial Committee for Overseas Territories on July 18, and the Minister Delegate for Overseas Territories has just changed during the reshuffle of July 20. Will the recommendations of the commission of inquiry be followed?
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