NASSAU, BAHAMAS — Prime Minister Philip Davis said yesterday that the costs of the global inflation crisis must be a “shared burden” that does not fall primarily on Bahamian families, while noting that government is mindful of the pressures impacting local businesses.
Davis, while making his contribution to the debate on the resolution to increase the country’s minimum wage said that while the $50 increase will not eliminate the economic strain on families, it is progress on the path to a liveable wage.
“We were very careful to negotiate a minimum wage that would not slow down job growth; we are very mindful of pressures facing Bahamian businesses,” said Davis.
“Similarly, when we added diapers and more food items to our price control list, we are signaling to businesses that we expect the savings from reduced customs duties to be passed on to Bahamians. Business owners will still make a profit, just a little less than they would otherwise. We have listened to their concerns, and we have been flexible about some of the details.”
He added: “We will continue to review the impact of price controls on both consumers and businesses but the bottom line is, the costs of this global inflation crisis must be a shared burden, not one that falls primarily on Bahamian families working to get by.”
Davis noted that the new price controls on medications are in effect, pharmacies will remain open, and the government expects pharmacies to come into full compliance in the coming days.
Members of The Bahamas Pharmaceutical Association closed their doors on Tuesday, citing a lack of response to recommendations offered in response to the government’s decision to reduce the margin on price-controlled drugs. The Association met with the government to discuss the issue yesterday.
Davis claimed that in raising the minimum wage and expanding price controls, his administration is holding firm in protecting the interests of the Bahamian people.
“We believe that this increase in the minimum wage will provide some measure of relief for working Bahamians, while a growing economy will allow businesses to adjust successfully,” said Davis.
