Head of the Barbados Chamber of Commerce and Industry (BCCI) Anthony Branker is reminding residents that “a little with content is great gain” with regard to the recently announced measures to ease the financial pressures of rising food prices.
His message was especially for those who believe the addition of more items to the VAT-exempted basket of goods had not gone far enough to assist struggling households.
Indicating that the business community has done the best it could at this time, Branker also told Barbados TODAY that the relief on some food items over the next six months should, by extension, ease some of the social ills facing the society.
On Thursday, Prime Minister Mia Mottley announced a major relief package that saw an additional 44 food, household and personal items being added to the list of VAT-free items, starting next Thursday.
In addition, Mottley, who acknowledged that the measures were not “perfect”, announced that the VAT on electricity bills for residents will be lowered to just 7.5 per cent up to the first 250 kWh, also for a six-month period.
The decision to offer a reduction of mostly between 12 and 15 per cent on some food prices came after intense negotiations between Government and the private sector.
Branker said the BCCI and its retail, distribution and manufacturing members saw this as part of their responsibility despite still facing immense pressure from rising operation costs.
“Members were willing to give of their little means for the good of this island and therefore over three days of negotiations members agreed they would lower their mark-ups on these items so that we can maintain the integrity of the island,” said Branker in a brief comment to Barbados TODAY on the move.
While the majority of Barbadians have readily welcomed the measures, some have argued that it has not gone far enough. Some residents believed the reduction in the food prices should be permanent, while others argued that fuel prices should also be addressed.
“If this can be instantaneously done for six months, it is clear that we are being unnecessarily burdened otherwise by unscrupulous practices by the business class. These things really make you go hmmm,” said one Barbadian.
However, Branker said the decision to provide an ease on some prices was not an easy one given that businesses were also suffering from major costs.
“We work on very slim margins, we are under pressure like everyone else from the cost of electricity, and as mentioned we have significant banking fees,” said Branker.
“Just generally, the costs of services involved in running the supermarkets have escalated, and so we did what we thought was our best at this time and the Prime Minister understood the nature of our business when we exposed it to her. Therefore, I think at this time, with the removal of VAT on some items, the removal of duties on some items and lowering of the margins, I think a little with content is great gain,” he said.
Pointing to the violence facing the country at this time, Branker said it was concerning and this also influenced the decision taken by the business community to provide relief at this time.
“Certainly it is a concern and that is why even the measures that we approved and bought into are about ensuring the stability of our country. We are very concerned,” he said.
“The Attorney General gave us a briefing on Wednesday as to some of the measures they are putting in place. So we do understand there is a build-up of pressure in the society and the business community. Even though we are quite concerned we try to do our part to ease some of that tension in the society,” he said.
In her announcement on Thursday on the ease in food prices, the Prime Minister stated that while she wished she could “do more” on gasoline and diesel, it is not possible “at this stage”. She pointed out that Government was already giving up some $10.5 million in revenue from the measures already implemented to provide an ease to consumers in that area.
Regarding the issue of crime and violence, Mottley said the response will require a total country approach.
“Every citizen of this country must recognise that we need a whole of country approach if we are to overcome all of these challenges, not just the inflationary ones, but the ones that are hitting us all at once, whether they are social or related to crime, or economic or indeed, environmental. These measures my friends, represent part of a multifaceted approach and each citizen, each person, resident here has a role and a part to play . . . We are all in this together.
“Being in this together means that we are not only responsible for ourselves but you and me, we are responsible for each other. We will not survive these trying times by pulling at each other or by clutching on to narrow interests,” said Mottley.
