A retailer said he is watching to see if planned pricing control measures on essential items will eventually include other categories of goods.

Tony Thompson, the chief executive of Gibbons Company, acknowledged that the proposal in the Throne Speech did not affect his store because the business does not sell foodstuff and other “essentials” — but asked if the scope may eventually be expanded.

David Burt, the Premier and Minister of Finance, has insisted that the Cost of Living Commission will only examine the prices of items that retailers do not pay customs duty on to make sure that those tax breaks are passed to the customer.

Mr Thompson said: “While we do not operate in the food retail sector, we acknowledge that government policies affecting pricing transparency and cost controls may have broader implications for the retail industry as a whole.

“We welcome efforts to support consumers and ensure a fair marketplace but any discussion on pricing must also consider the economic realities of doing business in Bermuda.”

Mr Thompson also dismissed claims by the Government that stores were profiting at the expense of Bermudians.

Mr Thompson was responding to commitments made this month in the Throne Speech, which stated: “For far too long business has profited at the expense of everyday Bermudians and the sunshine of public scrutiny cannot just apply to the Government, it must also apply to those on whom Bermudians rely to purchase the goods to sustain themselves.”

He said: “We take exception to the statement that businesses have profited at the expense of Bermudians.

“Retail in Bermuda is entirely privately owned, and many businesses — ours included — have been operating under increasing financial strain due to rising costs and a limited customer base.

“The notion that retailers have not passed on cost savings to consumers does not reflect the reality of the challenges we face.

“In fact, most businesses have absorbed additional costs rather than fully passing them on to customers.

“Bermuda is a high-cost jurisdiction, with businesses facing substantial expenses across supply-chain logistics, import duties, staffing, rent, electricity and product procurement.

“While we always seek to deliver the best value to our customers, our ability to do so is influenced by these unavoidable costs.

“We are eager to understand the specifics of the Government’s proposed pricing control measures and how they will consider the financial realities of operating in this market.”

Mr Thompson said the company believed in transparency and fair business practices but questioned whether government oversight will result in “unnecessary regulatory burdens”.

He said: ”If the Government seeks more data from the private sector to make informed decisions, we would ask in return, what concessions is the Government willing to offer to ease the cost of doing business in Bermuda?

“Lower operational costs would naturally allow for greater flexibility in pricing.

“Ultimately, Gibbons Company remains committed to serving the Bermudian public with quality products and fair pricing.

“We look forward to engaging in meaningful dialogue with the Government to ensure that any new policies support both consumers and the businesses that sustain Bermuda’s retail economy.“

The move was criticised by independent senator John Wight during a session of the Upper House on Wednesday.

He said: “What I don’t understand … is why, for example, Government would want to expand the powers of the Cost of Living Commission to examine the books and records of food and essential goods companies.

“Why do we want to penalise those businesses, in this example the two largest food retailers, for continuing to invest in Bermuda and Bermudians, when so many others have chosen not to?

“I find the logic counterintuitive to the outcomes of increasing a competitive local business market that we are trying to achieve.”

In its Reply to the Throne Speech last Friday, the One Bermuda Alliance claimed that the proposal was “alarming”.

Jarion Richardson, the Opposition leader, said: “Around the world, history has shown that price controls do not solve economic hardship — they create shortages, discourage investment, and often lead to black markets.”

In a subsequent debate, Mr Burt reminded the Opposition benches that when the Government announced plans to cut customs tax on essential food items to reduce the cost at the till, they questioned how it would be enforced.

He said: “Absolutely — price controls have demonstrated through history they do not work. But that would be twisting the words of what was meant inside our particular Throne Speech.

“I remember the debate when this Government created a list of essential goods, set those items to 0 per cent duty and what were the complaints from the other side? ‘How are you going to ensure that these matters are reflected in the prices in the grocery stores?’

“So now, after the experience of recognising that despite our best efforts, to this time those prices have not been reflected and it is recognised through data collected that significant duty cuts — in some space where things have gone from 25 per cent to 0 — have not been reflected at the stores.

“We then state, as directed by our members that this is what we’re going to do to make sure that it goes through.

“So I ask the honourable members opposite a question they can respond to in next week’s motion to adjourn: what is their plan for ensuring duty cuts that are cut to 0 make it to consumers?

“I can answer the question for you. They have none. No plan whatsoever.

“Something else that they do not like, but why is it necessary? They talk about regulation, they talk about ‘it’s dangerous’. Let’s go on this one. How do you know if price gouging is not going on?

“They say it’s simple to figure out, but the reality is in a small market such as Bermuda — limited shipping lines, limited items, limited number of suppliers — there are duopolies and other sorts of things that do exist.

“This Government was elected on a platform which came through our members which said that we must do everything in our power to make Bermuda more affordable. And rest assured … that is exactly what we will do.“

Those views were echoed by government senator and junior minister Lindsay Simmons in the Senate on Wednesday.

She said: “We’ve already removed duties on many essential items, but too often those savings do not make it to the register.

“That’s why we pledge to expand the list of essential items eligible for tax relief and introduce fair pricing oversight.

“Additionally, we anticipate launching a digital price tracker so consumers can compare costs across retailers and support food co-ops, community gardening and vendor-friendly policies to increase local access and affordability.”