Log In

Reset Password
BERMUDA | RSS PODCAST

Cannonier: Price control is a 'very slippery slope'

First Prev 1 2 Next Last
Senator Craig –Cannonier

The Opposition raised concerns that a new Price Control Commission could introduce control measures that damage the free market, but Government insisted that is untrue.The debate came during the Motion to Adjourn in the Senate yesterday. Premier Paula Cox announced on July 15 that the Price Control Commission will carry out an inquiry into the cost of essential goods, so Government can ensure they are as low as possible. The three-person panel will invite input from wholesalers, food stores and unions.Sen Burt told the Upper House that Government will use its powers of inquiry under the Price Commission Act 1974 to obtain information from food importers about their import costs and margins to ensure that consumers are protected from "unwarranted price increases".Submissions will be invited from the retail sector as well as from the public, unions and employers' groups. Sen Burt said: "At the Government's town hall meeting last night, an example was given of a retailer who was charging $25 for an item."A friend who was shopping with the consumer told the person not to buy the item as the exact same item was on sale at another store for $18."Now, I'm sure the retailer selling the item for $18 was not selling it for a loss, so the question should be, why the retailer selling the item for $25 chose to gouge fellow Bermudians. We must ensure that consumers are protected from unwarranted price increases while suppliers and retailers continue to remain profitable. As a result, it is hoped that this will be a collaborative team effort between Government, suppliers, retailers and consumers."He added: "It is expected that everyone in the commuity, especially wholesalers and retailers for staple goods such as food, have a role to play."While consumers are challenged it is only expected that as a community we all share the sacrifice in creating the environment to return our economy to growth. If we are all in this together, then all of us, including those in the private sector, have a role to play."Opposition Senator Craig Cannonier, a businessman who runs two Esso gas stations, said the idea of price control is a "very slippery slope" and could damage chances of boosting local businesses in Bermuda, which is exactly what Government should be doing.He said wholesale businesses are doing well because of the free market. Meanwhile, he said, some supermarkets have "dismal" profit margins and are struggling to pay their staff.Sen Cannonier suggested it should be up to consumers to stick to the adage "buyer beware" and to shop around, viewing "too good to be true" prices with suspicion."We need to encourage our fellow Bermudians to shop better," he told the Upper House.Sen Burt replied to say that despite the Commission?s name which is a result of the legislation allowing for it to be introduced Government is not planning to control prices. "I don't want it reported that Government is instituting price controls," he said, insisting that Government has stated price controls would have negative consequences.He insisted that the Commission will report on ways to ensure more reasonable prices, not report on how price control measures could be brought in.

Senator David Burt