The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

AML Foods’ chairman yesterday urged the Government to permit the use of food stamps in its Nassau-based stores, describing the present policy as “unfair” and “frustrating” to both itself and consumers.

Speaking to Tribune Business after the opening of its Solomon’s Fresh Market store at Harbour Bay, Dionisio D’Aguilar, the BISX-listed food retail and franchise group’s chairman, described the Ministry of Social Services’ current policy as discriminatory.

Apart from permitting food stamps to be used at the stores of its main rivals, thus denying Nassau consumers choice and AML Foods extra revenue, Mr D’Aguilar said the policy was discriminatory on geographical grounds - because food stamps could be used in the group’s Freeport stores.

The AML Foods chairman said the rationale given by the Ministry of Social Services for the current policy was that it was “fearful” food stamp recipients would use them to purchase luxury consumer goods also stocked by Solomon’s SuperCentre and Cost Right, such as TVs and electronics.

He countered, though, that AML Foods could easily prevent this by using its computer and scanning systems as a “safeguard”. These could be configured to accept only cash or card payments for TVs and similar items, thus preventing the waste of food stamps.

“There’s no food stamps being accepted in any Solomon’s, Cost Right, any of AML’s Nassau stores,” Mr D’Aguilar told Tribune Business.

“They are accepted in our Freeport stores, but we can’t accept them here in Nassau, because the Ministry doesn’t believe Solomon’s or Cost Right are acceptable places for those in possession of food stamps to use them in our stores.”

Pointing out that “if we’re not the largest, we’re the second largest food store in the country”, Mr D’Aguilar said it was unfair for AML Foods “to be denied its right to sell food” to Bahamians receiving food stamps from the Government.

The problem appears to be that, unlike traditional food stores, which typically carry no other inventory, AML Foods’ Solomon’s SuperCentre and Cost Right locations are ‘destination stores’, offering products such as TVs, electronics and clothes.

“The reason being given is they are fearful people will come into the stores and use the stamps to purchase TV’s, consumer electronics and other non-food items,” Mr D’Aguilar told Tribune Business, adding that the Ministry’s policy had now spanned two administrations.

“It’s frustrating for the consumer, and frustrating for us, because we’re owned by 1,300 Bahamians, have 860 Bahamian employees, we put tens of millions of dollars into the Treasure every year, have $15 million in payroll, but despite all these facts, Bahamians can’t use food stamps in our stores.

“They’re [the Ministry] refusing to make a decision on this. It’s just not fair. We’re pushing them to make that decision. What more can we do?”

Arguing that AML Foods’ four Nassau stores, including two Solomon’s Fresh Market outlets, “should be afforded the same privilege given to our competitors” in selling food to food stamp holders, Mr D’Aguilar said there was a simple solution to the Ministry’s fears.

“You can limit the method of payment for those items to cash and credit cards, not food stamps,” he added of electronic goods.

“Everything has a SKU number, so you scan them and only those items that meet the criteria can be paid for by food stamps.”

Mr D’Aguilar was able to address his plea to Khaalis Rolle, minister of state for investments, who attended the Harbour Bay opening on the Government’s behalf.

Further exploiting the opportunity, the AML Foods chairman also urged Mr Rolle to convince his Cabinet colleagues to “do away with the ineffective Price Control regime that is presently in place”.

He added: “I realize that it is probably not politically feasible at this time, but it is hurting the very people it needs to help, since by forcing all food stores to sell the bread basket items below cost, it means that we must charge much more for the healthier non-Price Control items, thereby putting out of reach the very food groups our people need to eat.”

Apart from distorting the market and putting certain goods out of reach of some Bahamian consumers, Mr D’Aguilar told Tribune Business that Price Control tended to be “too dogmatic”.

He said that high-end, organic and expensive cheeses and milks, for example, were being bracketed with low-end counterparts, and all ended up Price Control.

By ruining retailers’ margins on high-end, healthier products, Mr D’Aguilar said companies would be deterred from importing them to the Bahamas.

“That was not what the intention of Price Control was,” Mr D’Aguilar told Tribune Business.

“You’ve got to jack up the price on the more expensive items to compensate, and it actually causes you to charge a hell of a lot more on healthier items that people should be consuming.”