DLP’s Walters says measure to control freight costs offers nothing to consumers

The Mia Mottley administration is being urged to scrap the recent cap on freight cost on which duties are to be calculated and put another measure in place that will benefit all importers and ultimately residents.

This suggestion has come from Ryan Walters, Third Vice President of the Democratic Labour Party (DLP). He said that the recent budgetary measure, which took effect on March 15 and will run for one year, was perhaps nothing but a smokescreen.

“Who is responsible for designing and ultimately approving this proposal? How does this shield consumers when the threshold only applies to a minority of containers arriving on island? Was this initiative really intended to shield consumers or was it just a smokescreen that allowed government to continue to rake in revenue as freight costs rise?” asked Walters.

“It is, however, not too late for the Government to make wrong things right. There are options on the table that can bring relief and limit the increases to the cost of living. The threshold of US$7,350 and US$8,000 per 20-ft and 40-ft container respectively, can be lowered to accommodate the reality in the sector,” he said.

“Additionally, the Government has the option to remove freight costs from the calculation of duties and taxes off imported products, if only as an interim measure. More needs to be done other than talk if the Government is truly interested in shielding the most vulnerable in our society. They need to act now, revise the proposal and bring something that actually helps. Failing to do so at this time will mean that prices will go up and cause further financial pain on Bajans,” warned Walters.

His objection to the measure comes on the heels of continued calls for Government to explain exactly how the measure would work.

Chairman of the Barbados Chamber of Commerce and Industry Anthony Branker has expressed concern that the cap will not benefit those who have to pay freight on items coming from CARICOM, North America and Central America, which is said to be the bulk of the imports.

As such, Branker has cautioned Barbadians about getting overly excited about savings on most commodities.

Walters expressed disappointment that Government had not gone far enough with the budgetary measure to give ease to residents as it relates to the cost of food.

“The Government should be ashamed to have advanced an initiative for months that only takes into account a minority of the imports into Barbados. Based on what Mr Branker has reportedly said, how could the government not know that most importers procure their goods from CARICOM, North and Central America and therefore they will not meet the threshold of US$7,350 per 20-foot container and US$8,000 per 40-foot container?” said the DLP spokesman.

Logistics and supply chain management specialist Gavin Bovell said he too had reservations about the new measure, which was designed to give partial relief to Barbadian consumers.

In an interview with Barbados TODAY this week, the University of the West Indies, Cave Hill Campus lecturer said while the initiative was a good one, he questioned if Government was prepared to offer further concessions to businesses.

“While I think the cap is a good initiative, you have to think about companies that have seen increases in freight, but their cost of freight would have traditionally been lower, and I am talking about regional shipments. Are they going to see any special attention paid to them or essentially are they going to see an increase in their duties because they fall below the cap?” he queried.
marlonmadden@barbadostoday.bb