The Tribune

By JADE RUSSELL

jrussell@tribunemedia.net

RETAILERS have been granted an extension to next Friday for the adoption of new price controls, amid the government’s decision to expand its list of price-controlled items.

Earlier this month, Prime Minister Philip “Brave” Davis revealed in a national address that 38 items will be subject to price controls.

With the expansion of the items combined with the government’s decision to increase the country’s minimum wage from $210 to $260 per week, retailers questioned how businesses were supposed to survive the double blow.

During an OPM press conference on Friday, Latrae Rahming, director of communications, announced an extension for retailers on the price control measures.

“We will extend the period of conversation to next week Friday. The government realises and recognises that we share the burden with all of our partners in this effort, in the fight against the global economic crisis. So, they will get an extension to next week Friday,” Mr Rahming said on Friday.

Economic Affairs Minister Michael Halkitis had recently said that he hoped that all issues between the government and retailers would have been resolved by October 21, the initial deadline.

Mr Halkitis’ comments came after a meeting was held with Mr Davis and the retailers last Monday.

He explained the meeting allowed retailers to voice their concerns about the impact the price controls could have on businesses.

However, Mr Halkitis said the Prime Minister emphasised to the retailers that the price control measures were a part of the government’s efforts to bring relief to the Bahamian people.

The meeting between the retailers was described as “cordial” by the minister of economic affairs.

He previously made it clear that officials were “not delaying the roll out at all” of the new price control measures.

They were implemented on Monday, October 17.

Along with Mr Halkitis and the prime minister, Deputy Prime Minister Chester Cooper, Attorney General Ryan Pinder and officials from the Ministry of Agriculture and price control attended that meeting on Monday.

The retail grocers were also present, as well as some representatives from wholesalers. There was also a representative from the Family Islands and also the Light Industries Development Council.

Additionally, Philip Beneby, the Retail Grocers Association's president, had told Tribune Business previously that retailers were struggling to meet the initial deadline in regard to the government’s price control expansion.

Mr Beneby declined to provide specific details on any proposals as he feared it would prejudice the outcome of negotiations with the Government.

Mr Beneby highlighted that it would have been challenging with the deadline to come up with a workable plan, noting the need to consult both Family Island food merchants as well as wholesalers to gain their input.

“All I can say is that we’re working as hard as we can to see if we can come up with a suitable solution and one that the Government could accept,” Mr Beneby told this newspaper previously. “It’s not easy because we have to communicate with those in the Family Islands as well, and so we are trying as best we can to have it ready for Friday. It is a work in motion. It’s tight.

“All I can say is we’re trying like hell to do so. We hope we do. Everybody is on board trying to work it out. It is a group effort, and we have to take consultation with the wholesalers as well. Dozens, dozens of people are involved. We’ll have to see how it goes. I can’t say too much. We don’t want to aggravate it. We want everything to be done in good faith, and don’t want to pre-empt our efforts. We’re working, we’re working. Give us a chance; let us see what we can come up with,” Mr Beneby Told Tribune Business last week.

The government is planning to limit the wholesale and retail markup on items like diapers, and food including chicken, eggs, bread, bananas, apples, oranges, broccoli, onions, and potatoes.