Bahamas retailers upset at new price controls

Prime Minister of The Bahamas Philip Davis says he intends to meet with members of the private sector after the Retail Grocers Association of The Bahamas complained that the recently announced plans to add 38 items to the number of products now subject to price controls would be detrimental for many businesses.

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 per cent of their sales volumes being subjected to price controls.

The Ministry of Economic Affairs has since said that while the changes to the price control regulations take effect this week, it and the Price Control Commission recognise 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.

“I’m disappointed in those things and I’m not going to address that,” said Prime Minister Davis in response to the retailers’ threatened actions.

“I’ll speak to them and hear what they say and see what happens from there,” he told reporters.

The meeting is said to have taken place.

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 emerging out of it.

Davis announced the additional price controls last week, saying it would help Bahamians grapple with the high cost of living amid rising inflation.

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.

The controls would remain in place for at least six months, the prime minister said, following which the government would review and evaluate the impact on businesses and consumers. He also said the profit margins for price-controlled drugs were 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,” Davis said.

CMC