NASSAU, BAHAMAS — Super Value’s owner has called for the abandonment of what he called a “useless” price control regime, arguing that the cost of living could be reduced were it not for such an “antiquated” system.
Rupert Roberts, in an Eyewitness News interview, suggested that price control is creating more problems than it is solving and called on the government to assess the 50-year-old regime.
“The whole price control system is useless. We could maintain the cost of living or drive it down if we didn’t have to deal with a 50-year-old, antiquated price control regime,” said Roberts.
He added: “I’ve never known a single merchant to break price control in the last 50 years. There are times when stockers make mistakes but never anyone intentionally violating price control.”
Price control was introduced in 1971 as a means of preventing unscrupulous merchants from exploiting lower-income consumers by significantly increasing the cost of goods on food staples and other products.
Roberts argued that it is taking too long for price changes to be approved in light of global price hikes and supply shortages.
He noted that retailers and wholesalers ultimately have to increase prices on non-price-controlled items to compensate for losses on price-controlled goods.
There are times when stockers make mistakes but never anyone intentionally violating price control.
– Rupert Roberts
Prime Minister Philip Brave Davis, in a supplementary budget statement back in October, indicated that the government was looking to price controls to keep food prices in check as the government moves to remove multiple value-added tax (VAT) concessions on breadbasket items.
“With the reduction in the VAT rate, we are eliminating the zero-rating under VAT on a variety of items. Price controls are in place to ensure that breadbasket items will be fairly priced,” the prime minister stated at the time.
Economic Affairs Minister Michael Halkitis, defending the decision to remove the zero-rating on breadbasket and several other items while slashing the VAT rate from 12 to 10 percent, explained that in order to have VAT-free items, the former administration had increased VAT on everything else.
“Our view, supported by research, is that it is better, more effective, to have a lower rate with minimal exemptions, and for those vulnerable in society, they be given direct cash assistance,” he said.
