NASSAU, Bahamas – Prime Minister Philip Davis says he intends to meet with members of the private sector after the Retail Grocers Association of The Bahamas said the recently announced plans to expand by 38, the number of items now subject to price controls, would be detrimental for many businesses.
Prime Minister Phillip Davis (File Photo)In a letter to Prime Minister Davis, the association said the effect of the “unilateral decision will be devastating” to its members, especially owners of smaller, family-owned businesses.
They said the changes do not represent 38 items, but 38 categories of items, and would result in 40 to 60 percent of their sales volumes falling under price control..
The Ministry of Economic Affairs has since said that while the changes to the price control regulations took effect this week, it and the Price Control Commission recognize the need for an extended period to phase in the price control adjustments and will forgo any penalties and enforcement during the adjustment period.
The association has said that its members will not implement changes as gazetted by the government and some would be forced to start layoffs and store closures if the price margins were instituted as planned.
But Prime Minister Davis told reporters “I’m disappointed in those things and I’m not going to address that. I’ll speak to them and hear what they say and see what happens from there.”
Informed sources here said that the meeting took place on Tuesday night and President of the Retail Grocers Association, Philip Beneby, told the Nassau Guardian newspaper that he could not speak to the specifics of the meeting and that the association is leaving it to the government to make any statements on the meeting.
Last week, Prime Minister Davis said that that as Bahamians continue to grapple with the high cost of living compounded by inflation, 38 new items will be subject to price controls.
He said this means that the government will limit the wholesale and retail mark-up on items like diapers, and food including chicken, eggs, bread, bananas, apples, oranges, broccoli, onions, and potatoes.
Davis said these items are being added for at least a six-month period, following which the government will review and evaluate the impact on businesses and consumers. He said the profit margin on price-controlled drugs is also being reduced to provide additional relief to Bahamians.
“Our goal for the Bahamian economy goes beyond recovery. The goal simply can’t be to return to the way things used to be because, let’s be honest, there has never been a time when our economy created enough opportunity for Bahamian advancement and ownership. Returning to the past economy isn’t the goal, creating a new more inclusive economy is the goal,” he said.
