The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

Ebowleg@tribunemedia.net

THE Davis administration is unlikely to renew the order expanding the list of items added to the price control regime last year, Economic Affairs Minister Michael Halkitis suggested yesterday.

Prime Minister Philip Davis revealed a significant expansion of price-controlled items in October to fight soaring inflation, including 38 extra foods, medicines and other essentials.

Grocers complained about this, warning it would cut their profit margins.

The order expanding the list of price-controlled pharmaceutical products expired after three months and the order expanding the list of price-controlled grocery items expired on Monday.

“What that means are fewer items (are on the price control list),” Mr Halkitis said before a Cabinet meeting.

“When it was initially put in place, the intention of the government was to have a temporary relief for consumers in the face of the very high inflation. So we wanted to put in place a temporary measure to bring some relief to consumers.”

“Our reports are that, and I had a meeting with the price control department yesterday, that by and large, the retailers, notwithstanding some commentary in the public … have complied or they did comply.”

“So we believe given that inflation, particularly in the US, has moderated in recent months, we expect to see some of that pass through to us.”

“Combine that with our increased enforcement capability, we should be able to better protect the consumer going forward.”

“So even though the expanded list has expired, we are in a better position to enforce the law as it is.”

Asked if the government plans to renew the price control measure, Mr Halkitis said: “Bear in mind at the time when the expanded lists were put in place, we stated to the public and to you know, organized retailers, grocery retailers, that it was a temporary measure.

“So you know, we don’t want to go back and just automatically extend something after we had given our word that it was temporary, but we’ll continue to monitor the situation.

“Bottom line is we have to use the tools that we have to protect the consumer, and if it becomes necessary, you’ll have to consider at some time in the future.”

Mr Halkitis said expanding the list of price control items was valuable.

“We think it brought some relief, particularly when you look at the inflation as it was globally,” he said. “If you check, you see it (came) down a bit. That gave a bit of protection. If you didn’t see a drastic decrease, well, that is because of elevated prices around the world, but we think it was worth it.”