The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Democratic National Alliance’s (DNA) leader yesterday urged the Government to enact anti-price gouging laws “with teeth” to protect Bahamian against unscrupulous merchants in Hurricane Matthew’s wake.

Branville McCartney told Tribune Business he had heard of some businesses charging “three times’” the normal price for essential supplies post-Matthew, although he did not name the companies or products involved.

“The Government has to be very cognisant of price gouging, and persons looking at this as a way of increasing their prices three-four times’ on persons in need of supplies and materials,” he said.

“I’ve heard of instances where persons spent three times’ the amount they normally spend on certain things.

“I would request the Government to be very strong and deliberate against those persons price gouging, because we as Bahamians cannot afford it. We need to look at laws relevant to that, and give them some teeth.”

Gowon Bowe, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, indicated the private sector organisation had received no specific complaints about merchants exploiting post-Matthew demand and supply shortages to hike prices.

However, he urged all in the private sector to behave with “integrity and morality”, warning that any attempts at exploitation would cost businesses customers for life.

“The last thing we said is that businesses have to act with integrity,” Mr Bowe told Tribune Business of the Chamber’s position.

“If you take advantage of this type of situation, and do attempt to price gouge, bear one thing in mind. It may be the last time you see that customer, as they will be the last person to go back to you.

“We always encourage businesses to act in accordance with the law, and in accordance with ethics and morality. We always urge the business community to be supportive, and that means supporting your customers in their hour of need.”

Mr Bowe added that previous reports of looting during Hurricane Matthew had proven false, as police investigations determined this did not happen, although Tribune Business understands that some businesses were broken into during the storm.

The Chamber chief warned that recovery from Hurricane Matthew would require “a national effort”, with the Government, private sector and the public working closely together.

He explained that the Government’s exigency Order, which should take effect today, would allow merchants to charge prices that were Value-Added Tax (VAT) and Customs duty exclusive.

They will also be able to claim VAT and Customs duty refunds on inventory in stock, Mr Bowe said, adding that the Chamber had spent time with the Government over the weekend to ensure “the procedures and protocols are well-articulated” for this.

The Government is also providing a 10 per cent Business Licence rebate to companies who donate more than $1,000 to the Matthew relief effort, up to a limit of $100,000.

“We have to be somewhat innovative and think out of the box, and not look at traditional systems and say ‘Open the door, because we’re in need’,” Mr Bowe said.

“We have to look at the existing system and structures, and say how do we allow for incentivising and businesses to benefit.”

He added that the Government had agreed to the restoration fund, and fund raising, being private sector led with proper accounting.

Mr Bowe said that,to-date, the Christie administration had been “super collaborative” in efforts to work with the private sector post-Matthew.