Increased competition in self-regulated professions could save 128 million euros a year

If there was more competition in the self-regulating professions and if certain legislative changes and new regulatory measures were introduced, Portugal could save at least 128 million euros a year, or 0.07 % of gross domestic product (GDP) [19659002] The conclusion is a study conducted in cooperation between the Competition Authority and the OECD and was presented this Friday. The 765 recommendations made by the OECD, presented in an action plan drawn up by the Competition Authority, will now be the subject of discussions between the government and professional bodies in order to propose any legislative amendments. All will not be accepted and there will certainly be controversy. One of the proposed measures, for example, is that the law firms may be detained by persons with other professions and who can provide other types of services, particularly financial services.

lawyers.

Savings Figures

With the legal professions (lawyers, notaries, lawyers, etc.) and the legal professions and enforcement agent), the country could save about $ 32 million. 39; euros. With the economic-financial professions (auditor, accountant, customs officer and economist), the gains for the economy could reach about 52 million euros. And with the technico-financial professions (architect, engineer and technical engineer) the profits could be of the order of 44 million euros. This is due to the elasticity of demand (plus 2%) and the price reduction (2.5%) that would result from the introduction of increased competition.

Here are some conclusions from a comprehensive study that has taken more than two years. It was conducted between April 2016 and June 2018. The subject was broad and the project ambitious: to assess competition and identify what can restrict the effective functioning of the market in two relevant sectors of the economy: 13 self-sectors transport (all except air and urban transport, namely buses and metro). In practice, it is a "Guide to Competitive Evaluation" of the Organization for Economic Co-operation and Development (OECD), which identifies possible barriers to competition and the solutions to overcome them.

The study identified more than 800 restrictions: 485 in the transportation sector and 363 in self-regulating occupations. With the conclusion of the study conducted by both authorities, the OECD proposes 417 recommendations for the transport sector and 348 recommendations for self-regulating professions.

The benefits estimated by the AdC and the OECD in the implementation of the recommendations would rise, as it has already been to 128 million euros per year for liberal operations and 249 million euros for transport.

Liberal professions: 700 laws and regulations analyzed

Among the liberal professionals, about 700 laws and regulations covering four occupational groups were analyzed: the legal professions (lawyers, notaries), lawyer and enforcement agent) ; economic and financial professions (auditor, chartered accountant, customs officer and economist); technico-financial professions (architect, engineer and technical engineer); and health professions (nutritionist and pharmacist). A group that, in 2016, employed 144,000 people (3% of employment) and generated a gross value added of nearly 4.1 billion euros.

The study indicates that there are too many restrictions on entry into the profession and offers greater access, as well as the elimination of regulatory barriers, including those that limit the ability of professionals to compete. Here are some of the study's recommendations: "Open access to partnerships, ownership and management of professional enterprises to people from other professions and allow multi-disciplinary firms to act in the fields of different professional sectors. "This is one of the proposals addressed to lawyers or notaries and notaries, whose companies can only be owned by lawyers and not by investors from other professional backgrounds." of these alternative business structures will allow the emergence of different business models in the market and will meet the demand for multidisciplinary services, "says the OECD and AdC in a document to which Expresso have access. [19659002] the criteria for the establishment of notaries (quotas and territorial boundaries) should be removed to allow competition between notary services. "A technical study should be carried out" to re-evaluate the demand for notarial services (in urban areas, on the coast, in the tourist areas) and the viability of the notary offices ". And based on this study, autonomous areas must be created where the demand for notarial services is high, it is defended at the end of the study. Access, he adds, "will remain controlled in the less populated areas to ensure the feasibility of notaries in these areas"

Free Occupations for Graduates from Other Regions

L & # 39; OECD also recommends that "certain professions be open to graduated professionals in other fields." This would allow the organization "to open access to people with different educational backgrounds and to To bring more diversity to professions, creating new opportunities for services offered and more innovation. "

The study also recommends that the authorities eliminate the rules that reserve activities for certain professional technical occupations (engineers, technical engineers, and architects), replacing them with a results-oriented regulation, such as this. This is already the case in many jurisdictions of the European Union. He asks for the deletion of "the newly introduced requirement to hold a university degree to practice the profession of official agent, allowing easier access to the profession by people who meet the remaining requirements."

Separate the regulatory function from the function the representation of the professional orders, by the creation of independent bodies by sector or by activity, or by the creation of a supervisory body within the current professional orders with the " Chinese walls' necessary (separation mechanisms), is another recommendation. "The supervisory body would include not only representatives of the profession, but also highly skilled and experienced professionals from other regulatory bodies or bodies such as representatives of consumer organizations and other organizations. academic institutions. "