A government-backed co-operative grocery store could open next year at an old school to introduce greater competition in the food market.

Announcing the move, the public works minister, Lieutenant-Colonel David Burch, claimed that grocery stores had failed to pass on custom duty cuts, made by the Government two years ago, to consumers.

He added: “I suspect there will be an outcry from the grocery store community, but we are left with little choice when they refuse to collaborate with us and reduce their prices.

“A government-supported co-operative grocery store is well placed to directly address this issue by offering affordable food options directly to the consumer.”

Colonel Burch was giving the House of Assembly an update on the use of old school buildings, including TN Tatem in Warwick, which closed in 2020 and is now a thriving space for small businesses and community groups.

The minister revealed that Gilbert Institute, scheduled to close next year, would be converted into a seniors’ care facility to meet high demand for the service.

Heron Bay Primary School is also slated to close and Colonel Burch said several options had been considered for its future use.

“The Government has decided to establish a sustainable government-backed co-operative grocery store to introduce competition into the local food market to reduce overall food prices in Bermuda and provide investment and wealth generation opportunities.

“The government-initiated co-operative food vendor is an integral part of the Government’s larger cost of living reduction measures strategy to specifically address the increasing cost of living in Bermuda.”

He said public discontent with the rising cost of living in Bermuda had been most reflected in the increased cost of food.

He added: “Government provided duty relief for 33 essential food commodity items in July 2022 whereby the objective was for the cost savings from the alleviation of import duty for grocers to be reflected in a reduction of retail pricing for commodity food items.

“Statistical retail sales data provided by the Department of Statistics has shown that this has not been the case as there has been no substantive reduction in retail pricing of commodity items by local grocers.

“This necessitated the need to introduce a substantive direct method to address the issue of food pricing in Bermuda.

“This initiative is a unique opportunity for the Government to affect food prices through the introduction of competition in the local market while also providing wealth-building opportunities for the community through co-operative investment prospects.

“Work on this initiative is advancing at pace with a full view of operation by next year.”

There was some confusion over the statement, which differed from the one posted on the House of Assembly website and sent to media by the Department of Communications.

That statement only said of Heron Bay: “Several options have been considered, presently, it has been determined that the upper level will be reserved for co-operative enterprises replicating the success at TN Tatem and building a similar community.

“I am also pleased to confirm that the lower level and field are to be leased to ‘Mr Cup Match’ Janiero Tucker to facilitate his goal of having a cricket academy at the Heron Bay Field.”

Colonel Burch said during ministerial questions: “First, I should say that I have a slight dilemma.”

Addressing the Speaker, he added: “You will know that you received two statements from me for delivery this morning and I have read the incorrect one, but let me just say this — there are two things in it that would be different.

“One, I pointed the direction of travel in relation to Heron Bay and a grocery store which is getting slightly ahead of myself, but I will say that it gives an indication of the direction of travel.”

He said the other change was that Mr Tucker would be running the cricket programme from TN Tatem.

Colonel Burch added: “As we progress through the education reform and other schools near their closing, the Government will seek new uses for those facilities and encourage those in the community looking for space to apply.

“The opportunity to repurpose these buildings preserves their community impact and extends their legacy of positively influencing our communities.”

• For the statement that was sent to the media and which was posted onwww.parliament.bm, see Related Media

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