Competition Council (KP) promises to follow possible competition restrictions that could follow after the change of the management model of Lieapaja special economic zone (Liepaja SEZ), as explained in the letter sent by KP to Liepaja Port Tenants Association.
At the beginning of August Liepaja Port Tenants Association “categorically objected” to Transport Ministry’s developed amendments to the Law on Ports and Law on the Liepaja Special Economic Zone that provide for changing the management model of Liepaja SEZ, changing it into a state capital association.
According to the association’s board member Janis Elerts, the association wants amendments to be assessed by CP and the Foreign Investors Council.
In the letter KP notes the competition council has the right to evaluate projects of legislative acts of other institutions and other documents, as well as provide reports on them if they include regulations that affect market mechanisms if their implementation could directly or indirectly limit competition.
“KP constantly follows legislative acts prepared by other institutions and assesses norms outlined in them. If need be, KP also provides evaluations,” the letter stresses.
KP explains the institution is aware of the legislative draft involving amendments to the Law on Ports and KP is one of the institutions that provide opinions on progress of the legislative draft. “Annotations of both legislative drafts mention that specific capital associations that are to take over port authorities’ functions and duties would have the right to engage in commercial operations with compliance with restrictions that extend to state capital associations in regards to commercial activities.”
A situation when such capital associations engage in services when there is no market sufficiency would be unacceptable, says KP.
KP urges Liepaja Port Tenants Association to keep the institution informed about possible competition restrictions. (BNN/Business World Magazine)