The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

PRIME Minister Phillip “Brave” Davis said yesterday the government expects the pharmaceutical sector to fully comply with the new price control regulations in the coming days despite receiving pushback from the sector.

Mr Davis spoke after pharmacies shut down operations across the country on Tuesday after failing to come to an amicable agreement with the government over their expanded price control regime that includes the reduction of the profit margin on price-controlled drugs.

The new rules came into effect last month and were set to be enforced on November 1, but out of fear of being found in breach of the law for non-compliance, many pharmacy operators decided to close their doors.

Some stores reopened Tuesday afternoon and the remaining reopened yesterday after the government agreed to meet with industry representatives the same day, on the stipulation that the businesses end their action.

 The outcome of those meetings was not clear.

 However, Prime Minister Davis told parliamentarians in the House of Assembly yesterday morning that his administration was of the view that pharmacies would uphold the law and continue business as usual.

 He also acknowledged the frustrations many business owners face given the high cost of living, but explained that “the bottom line is the costs of this global inflation crisis must be a shared burden.”

 He was adamant that the burden must not be placed on the backs of struggling Bahamians alone and appealed to businesses to do their part in helping to share the load.

 “We are very mindful of pressures facing Bahamian businesses,” Mr Davis said as he led debate on a resolution to increase the country’s minimum wage.

 “Similarly, when we added diapers and more food items to our price control list, we are signalling to businesses that we expect the savings from reduced customs duties to be passed on to Bahamians. Business owners will still make a profit, just a little less than they would otherwise.

 “We have listened to their concerns, and we have been flexible about some of the details. We will continue to review the impact of price controls on both consumers and businesses. But the bottom line is - the costs of this global inflation crisis must be a shared burden, not one that falls primarily on Bahamian families that’s working to get by. It’s a shared burden. That’s my cry to all -so that’s all I’m asking - let’s share this burden.

 “Madam Speaker, the new price controls on medications are in effect. Pharmacies will remain open and we expect pharmacies to come into full compliance in the coming days. In raising the minimum wage and expanding price controls, my government is holding firm in protecting the interests of the Bahamian people.”

 Similar comments were echoed by Economic Affairs Minister Michael Halkitis on Tuesday who insisted the government will not reverse its decision to enforce new price control expansion.

 He said the government expects the changes to be implemented and warned that operators who fail to adhere to the policies will face the consequences.

 Under the government’s initial proposal, price-controlled mark-ups range from 15 percent to 18 percent for pharmaceutical wholesalers. For retailers, the range is from 35 percent to 40 percent.

 Both sectors have opposed the changes and have since submitted proposals with alternatives that could simultaneously offer relief to Bahamians and not hurt their businesses.

 Asked if he was concerned about continued pushback from stakeholders, Mr Davis told reporters in a separate interview: “I am not concerned about it. I am trying to get them to appreciate that this should be a shared burden.”