LEADER of the Opposition Michael Pintard.
By KHRISNA RUSSELL
Tribune Chief Reporter
krussell@tribunemedia.net
FREE National Movement leader Michael Pintard called on the Davis administration to reverse its decision to enforce price controls on additional items, warning that to continue the measure is another ingredient to a “recipe for disaster” for hundreds of businesses in the country.
In an interview with The Tribune yesterday, Mr Pintard was adamant that a series of decisions made by the government have been “reckless”, saying he could see trouble coming from introducing additional items to the country’s price control list, higher electricity bills to come next month and an impending minimum wage increase.
His comments come days after Latrae Rahming, communications director in the Office of the Prime Minister, confirmed retailers were granted an extension to 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.
Given what is to come, retailers have questioned how businesses were supposed to survive the double blow.
However, despite a series of meetings with stakeholders, the government seems firm on its decision saying in a statement Friday that while they’ve agreed to allow merchants up to October 31 to complete their respective transition processes, beginning November 1, enforcement of the final amended regulations will come.
“The government’s actions with respect to a series of decisions they’ve made recently is reckless and we predict that it is going to result in tremendous hardship on small and medium sized businesses, in particular but not exclusively and that impact is going to trickle down to impact consumers who they claim that they have an interest in supporting,” Mr Pintard said Sunday when he was asked whether in his view, the government had handled the situation properly.
“This will also impact employees who are going to also bear the brunt of the government decisions.”
Mr Pintard said the Davis administration has not conducted studies or proper consultation to ensure they were on the right track.
“The government neither conducted studies ahead of the decision that they have made nor did they consult. In both cases it’s a recipe for disaster when a government fails to conduct studies to look at impact and then secondly to at least consult stakeholders to at least see what consequences are likely to result from the decisions that they are making.
“Even after what they admitted were compelling reasons why they needed to pause, given the fact that a number of businesses signalled their inability to sustain this in some cases for weeks, others saying that it’s only a matter of months that they are going to begin to feel the result and their business is going to be devastated.
“So again the government wishes to proceed because again it was seeking to appease members of the public whom they have just unleashed 163 percent increase on fuel charge and the government was trying to find a way to bail itself out of a tremendous backlash from a public that is justifiably angry with them.”
He continued: “So, they have gone from a very bad decision on BPL which came about because of their own failure to act in a timely manner, to a far worse situation by now inflicting harm on businesses and so we say to the government that they ought to reverse the horrible decision that they have made.
“They should remove VAT off the breadbasket items one, and then they should remove VAT off of that new mix of items that they are considering under price control.
“Remove the VAT. That would help achieve some relief for residents but listen to business persons, listen very carefully and assess whether or not you are going to devastate possibly hundreds of businesses.”
He maintained that recent actions of the government flew in the face of what was promised while the Progressive Liberal Party was in opposition.
“Without question (this is a recipe for disaster),” Mr Pintard said.
“The 163 percent is just the fuel charge. The next effect of that is some 35 percent overall increase of the cost of electricity even for the most vulnerable of society whom the government claims to have concern of and it also results in a near almost 100 percent increase for middle class Bahamians. That is devastating for businesses that employ Bahamians.
“Devastating for the consumers themselves and so again the government has made a horrible decision there. That could have been averted had they executed the trades that were recommended to them when they came to government.
“Now on top of that they have gone ahead and put all of these items under price control without the benefit of a study and without the benefit of consultation.
“Again we support unequivocally making sure that we have liveable wages but the government again proceeded down that road without again doing a proper assessment of the net impact.
“So, there has been a series of decisions that they made again flying in the face of what they said when they were in opposition, which is the need for studies so that you could make evidence based decisions and secondly the need for consultation with stakeholders who are the ones keeping this economy afloat,” Mr Pintard said.
On Friday Mr Rahming explained the reason for the extension.
“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.
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.
Comments
M0J0 2 years, 2 months ago
I can't see these business's closing because a government actually has the balls to tell them stop marking up so high in a time when most people's pockets cannot bare any extra. They are simply too use to being able to carry prices up without anyone to answer to. They are all so focused on a dollar and not the consumer. No consumers no dollars.
Dawes 2 years, 2 months ago
No dollars no sales
B_I_D___ 2 years, 2 months ago
So when your cost of doing business/break even point is 20-21% for the wholesalers...you think forcing them to sell at 15% is feasible? Good luck with that.
realfreethinker 2 years, 2 months ago
You are just as lost as the government. Price control hasn't worked before and it sure won't work now. We will soon be like Cuba. Waiting on a box of food items from the gov weekly.
birdiestrachan 2 years, 2 months ago
Pintard and his FNM Government has never been on the side of the poor they have always made every effort to make the poor poorest and the rich richer
Sickened 2 years, 2 months ago
And the PLP does? First thing they did was tax bread basket items.
ohdrap4 2 years, 2 months ago
@MOJO One will not really appreciate what it costs to land products until you work in the industry.
1--I order things online from a shipper who offers a pie chart breaking down what percentage of your bill goes directly to the GOVT. The GOVT gets the bigger portion between vat and duty.
2- the cost of shipping goes up to guarantee a hefty margin to the shippers, and no one is controlling their pricing, so another addition to the product cost.
3-- another addition to the prices of non price controlled items happen because price controlled ones are sold at a loss. So, if the flour is under priced by 20 cents, the pancake syrup will be overpriced by 50 cents, let's say, to make up for it. [why not the same 20 cents? Fewer units of pacanke syrup are sold] It is called cost shifting, that is why you pay 3 dollars for a box of bandaids at the drugstore, but the hospital charges you 7 dollars for ONE bandaid when you are hospitalized.
4- it is difficult to control the price of perishables because the want the markup based at the time of receipt, whereas the cost continues to increase because of refrigeration and spoilage.
The businessman will close down and fid other things to sell because he cannot sell at a loss, or tax anyone to make up the difference.
The UNITED NATIONS have advised against price controls, because they hurt the poor the most, leading to shortage of low cost products.
TalRussell 2 years, 2 months ago
I think before Grocermans' can raise shelves prices on groceries ... must tell the Stores Popoulaces' why __ Yes?
Sickened 2 years, 2 months ago
Rupert Roberts been doing this for years and yes he's rich but he ain't stupid rich like the numbers fellas who have only been doing legitimate business for 5 years or so. Plus the grocers provide an essential service. The numbers guys... well they just take money. Why are the ignorant masses more concerned about how much the white man makes while they say nothing about the corrupt payout odds the numbers guys set? Maybe I just answered my own question?
BahamasForBahamians 2 years, 2 months ago
Try as you may to make this a racial argument... but if you take a look at the grocers who met with the government last week. the majority of them aren't white
TalRussell 2 years, 2 months ago
Flashback three years to when the Tribune newspaper's Editor labeled the successful Grocerman's Rupert Roberts seeing heself his own "King Canute "
Nah, you just can't make up a "King Canute '' __ Yes?
birdiestrachan 2 years, 2 months ago
Lest we forget the FNM Government increased VAT 60 % what are bread basket items ? Flour and cooking oil benefits bakers and hotels , and other items best to do with out
M0J0 2 years, 2 months ago
what most stores are doing right now is adding vat, shipping, trucking, customs, stocking and the list of fees go on when the mark up these items. Many of them don't cost half of what they try to push the prices to. This is why the Chinese will never go broke. They are not interested in marking up, they rather sell in large numbers which still provides a surplus instead of trying to get it off 1 item.
ohdrap4 2 years, 2 months ago
why you complain, go buy where the merchant does not markup on his costs.
And, stock up, cause he will soon close.
ted4bz 2 years, 2 months ago
This is another charade. Both sides are fiddling with you all. Eventually we will experience shortage on the most important items. Well, not because these items will not be available or because of the high prices. No, but rather because this is a game, the hunger game. They intend to stop importing these essential items, eventually creating a shortage. That's the game everywhere, and here too, this is exactly what both sides are working together to do. Between your total trust and dependency on these people, what you are failing to realize is that you are being tricked, AGAIN.
birdiestrachan 2 years, 2 months ago
Tribune has no comments on several stories insight Malcom strachan my favourite guy to speak TRUTHS to could it be his propoganda
Machine Is in full swing and he is afraid of truth
The_Oracle 2 years, 1 month ago
Political tripe aside, let's follow this through its inevitable and destructive process. Who's next? Lawyers? Car Mechanics? plumbers! Why stop at all? It's inevitable for a government so stupid as to believe this will somehow fix the inflation that they actually cause and caused in the first place (they shut the economy down correct?) that they will continue on into other realms. Who will import eggs if there is not only no profit in it but loss? Who will pay 3 times as much for steak (or whatever is left if its price is increased to include the losses from the selling of eggs? Unbalancing a fragile economy is bad strategy when business is the largest tax revenue generator you have.
Sign in to comment
OpenID