The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Minister for Economic Affairs Michael Halkitis doubled down yesterday on “no margin increase” for petroleum dealers, arguing that it would go to the consumer and it would be “counterproductive”.

Mr Halkitis told reporters that the cabinet is deliberating on the proposals sent to them by the Bahamas Petroleum Dealers Association and will “have a resolution by budget time”.

Mr Halkitis also said: “We have heard the challenges that they face inclusive of high rents, high franchise fees, banking fees, a whole gamut of things and we’ve met with them, and trying to come to a position where the government can help them.

“They’ve presented proposals to us, which we’ve taken away to study and we’ve undertaken that we’ll come back to them and hopefully have a resolution by budget time.

Mr Halkitis also said: “We’re looking at a number of ways that we think that we can help them so you can expect to hear something in a matter of few weeks.

“As I’ve said before, no margin increase, margin increase goes directly to the consumer. So I mean, that would be totally counterproductive at this time.”

Petroleum dealers have been arguing for a margin increase for the past two years. The last margin increase was granted in 2011 under the former Hubert Ingraham Free National Movement administration.

Vasco Bastian, vice president of the BPDA, said: “If that’s what the minister said then that is what it is. I won’t get into a public argument with the Minister of Economic Affairs. I guess the minister knows from a government standpoint of what he speaks and he must know from the position where he sits from a financial and government point.”

Mr Halkitis, also noting the possibility of a doubling of shipping container prices, also said: “I heard that the cost actually begun to come down off of the highs but not back to the original levels. But we will obviously look into that.

“Global shipping is controlled by a few major players and so what any country can do and not only The Bahamas, but any country can do including the great United States is limited in terms of that. But, we’ll look into it and see.”

Mr Halkitis also spoke to the importance of the credit bureau and said: “The credit bureau has been long and coming. I remember serving under a previous administration and working on a credit bureau. So it’s positive for the economy in that it provides information as to credit quality of borrowers and gives you an idea of the overall health of the economy.”

Despite the apprehension of some quarters of the public towards the credit bureau, Mr Halkitis believes it will be “good for the economic health” of the country as more banks start to sign on as FirstCaribbean CIBC just recently did. “What needs to happen now is just to continue the education process so that consumers are not afraid of it or feel that it would negatively impact them,” he said.