The Tribune

EDITOR, The Tribune.

IN most countries which espouse capitalism there are anti-trust laws and unfair competition laws in place. I am a trained economist with a Bachelors in Finance from Walbrooke College in London, England. I do believe, therefore, that I am ‘qualified’ to speak to these issues. Under capitalism, market forces prevail and the extent of supply depends on the demand of consumers as they should be.

In most industries there are clear economic demarcations. One may chose to be a manufacturer; a distributor or a retailer. Here, there are three economic units where everyone is able to chose which one to enter and, hopefully, earn good revenues. A manufacturer, especially a large or medium one, is often prohibited by legislation from entering distribution or retail units. This applies in the USA; the European Union; Canada and most Central and South American nations, including Mexico.

There are no ‘known’ anti trust laws in our wonderful nation. Anyone, seemingly, like Commonwealth Brewery, partially owned by the government of The Bahamas, is able to manufacturer it’s assorted products; inclusive of Kalik and Heiniken; sell it to distributors and wholesalers, who in turn, logically, would sell them to retailers who, ultimately sell to the individual consumer. There is absolutely nothing wrong with this case.

Where the ‘problems’ come in is where the manufacturer (Commonwealth Brewery) has now opened scores of retail liquor stores, (wholly ‘owned’ by Commonwealth Brewery) all over New Providence (save an except for the so-called ‘white’ enclaves) and in most of the populated Family Islands. This means that the manufacturer, who would have received massive governmental subsidies and concessions, and is partially ‘owned’ by the government of the day, this Minnis administration included, is now competing, directly, with those retailers who are ‘obliged’ to buy from it! This is astounding and possibly could only happen in The Bahamas.

The retail liquor merchants pay utilities; taxes; NIB; insurance for their businesses and themselves, et al, and employ hundreds of individuals in their stores and businesses. The ‘pushing’ out of the retail trade by the ‘big boys’ in the liquor industry is a clear case of anti-trust protocols. We need urgent legislation on these two issues if this sector is to survive. The other day 700 Wines & Spirits, God bless them too, had a great wine sale.....Bare Foot or something like that. A selected package was being offered, after huge discounts, for about B$80.00 The retailer, with his/her discount, would have to purchase that same package, wholesale, from Commonwealth Brewery for about B$100.00

So, common and economic sense would dictate that a retail consumer patronise one of the 700 Liquor Store outlet. Simple as that.

As a firm believer in and practitioner of capitalism, I assure you, my fellow Bahamians and friends, that I endorse manufacturing in The Bahamas and applaud those individuals and corporate entities which are able to fund such enterprises. Yes, they too, pay all of the above mentioned bills etc and provide jobs for hundreds of Bahamians who otherwise may not have had a secure job in a highly rewarding and technical field. Having said this, however, they should stick to simple manufacturing and wholesale distribution and leave the retail sector alone.

It is alleged that a 700 Liquor Store branded location is/was planned for The Oakes Field Shopping Center, just across the street to The University of The Bahamas. A huge sign is/was prominently displayed ‘announcing’ the location. It is also alleged that previously the Licensing & Inspection Unit of The Royal Bahamas Police Force had ‘denied’ it’s ‘approval’ for that site to be licensed some months ago. It is now alleged that ‘approval’ has now been given and the original decision reversed.

The University of The Bahamas is just across the street. Do we need a retail liquor store directly in it’s front door? On the Poinciana Drive side, there is a building which used to house a Spotless Cleaners, directly opposite the Southern entrance to UB. Allegedly there is a pending application to open a Chinese restaurant selling the usual menu along with wine and beer.

Under capitalism there is ‘nothing’ inherently ‘wrong’ with any of this but, consider the following. Our students at UB may or not be alcoholics across the board but we Bahamians all know that teen age drinking and public drunkenness exists, big time due to any number of societal and genetic circumstances. Grant the applicants, if it has not already been done so, a license to sell all the Chinese food possible, especially conch fried rice, to all and sundry. No liquor license, however, in that immediate area, for reasons of public policy.

Competition is good. Monopolies are bad. If Commonwealth is able to secure a larger percentage of the manufacturing inventory from other manufacturers like Sands Brewery or large wholesalers like Bristol Cellars more power to it. It cannot and must not, however, be allowed to expand any further into the retail liquor business. To add insult to injury, it is alleged that yet another 700 Liquor location is being proposed on the Charles Saunders Highway, just across the way from Sadie Curtis Primary School!

It is the people them time, Prime Minister Minnis. I, as Executive Director of Common Cause, request that you direct your legislative team to draft appropriate anti trust and unfair competition bills at the earliest opportunity. If you fail or refuse to do so, ertswhile leader, History will be most unkind to you and you would never be absolved. To God then, despite Himself being A Monopoly, in all thing, be the glory.

Would we want half drunken students at UB getting into altercations and possible serious infliction of bodily harm to the point of death?

ORTLAND H BODIE, Jr

Nassau,

September 16, 2017.