Business leader calls for joint approach to cost-of-living crisis ahead of budget

​As Barbados prepares for the national budget presentation on Monday, prominent businessman Eddy Abed has issued a call for a unified “joint approach” between the government and the private sector to tackle the island’s persistent cost-ofliving challenges.

​Speaking with Barbados TODAY ahead of the Minister of Finance’s delivery of the budget for the next fiscal year, the Abed & Company Ltd Managing Director emphasised that current economic pressures require more than just isolated policy decisions.

“We in the private sector have said for the longest time that the cost of living is far too high in Barbados, and the solution has to be a joint approach. It has to be the government and the private sector locking arms and dealing with this,” Abed stated.

​A significant portion of Abed’s concerns centered on the way import duties are calculated, specifically regarding freight costs. He argued that the current system of charging duty on a compounded total—which includes both the cost of goods and the value of shipping—places an unnecessary burden on local retailers and, ultimately, consumers.

​“In some instances, this can add as much as 15 to 20 per cent to the retail price of the item,” he explained, noting that the sector is actively seeking a change. “In America, duty is calculated on the Free On Board (FOB) value, which is the cost of the item, nothing to do with freight or insurance, and we’re asking the government to look at that now.”

​Abed further cautioned that rising global oil prices threaten to drive freight costs even higher. Without relief, he warned, these increased logistics costs will inevitably be passed on to the public.

​Beyond immediate price relief, Abed highlighted the need for structural improvements in the “ease of doing business”.

He called for an expedited process for regulatory approvals, particularly for development projects that require significant capital investment.

​“The confidence that’s required to do something like that should not be dampened by the process in getting approval,” Abed noted. He urged the government to establish an “expedited window” to facilitate fast-tracked action, arguing that even setting a threshold for large-scale investments would reassure investors that their contributions are valued.

​Abed also touched on the urgent need to accelerate the transition to renewable energy to reduce the country’s reliance on fossil fuels, emphasizing that government and private sector collaboration is essential for building necessary battery storage solutions.

​He warned that the island’s continued reliance on fossil fuels leaves it dangerously exposed to global market volatility. He highlighted the looming threat of rising energy costs, stating: ​“We should not be in a position today when oil may approach as much as $150 or $200 a barrel, where we’re still so dependent on fossil fuels.”

​This dependency creates a ripple effect throughout the economy. Because import duties in Barbados are calculated on a “compounded total” that includes the cost of freight, rising oil prices directly increase the landed cost of goods, ultimately inflating the cost of living for all Barbadians.​ ​Abed pointed specifically to the technical infrastructure required to facilitate this shift, noting that the private sector is aware the projects have “gone out to tender.”

However, he stressed the need for a collaborative effort to ensure grid reliability. ​“It needs to be a joint approach towards storing this energy so it works efficiently for the grid in Barbados.” (RR)