Price control amendments to take effect November 1

NASSAU, BAHAMAS — Economic Affairs Minister Michael Halkitis said yesterday that the government expects that its recently announced expansion to the Price Control Basket (PCB) will take effect November 1.

Speaking on the matter yesterday Halkitis said: “We have amended the orders and what we have done is not gone to full enforcement of the new orders as yet because in our meeting with the retail  grocers last week Monday and the meeting we had with the pharmaceutical retailers and wholesalers this past Friday similar sentiments were expressed about notice being given and an opportunity to make the adjustment.

“Of course they did not agree with the margins but we stressed to them that this is a temporary measure in the first instance and we will review afterward. We also committed to looking at some other things that impact their businesses.”

He continued: “The retailers did ask for an extension to October 28, which is this Friday, in order to get to us some suggestions on how we can […] bring down prices and minimize the impact on them. 

“As of now we haven’t received that as yet. What we indicated was that what we will do is give them until November 1 and then we expect that the new margins will be in effect in the retail pharmacies as well as stores.”

Halkitis warned that there will be various penalties for non-compliance, but expressed that the government will not be coming down with a “heavy hand”. 

“We understand everything the businesses have told us about the impact on their bottom line, what they have said in terms of cost and how it’s affecting everybody. What we have stressed is that the government has made some efforts on its behalf and this is an effort to ensure that the things we are doing trickle down,” he said.

According to the Retail Grocers Association, while the government has announced that 38 items would be added to the Price Control Basket, it is in actuality 38 categories of foodstuffs, which would affect more than 5,000 items to which inventory and price adjustments would have to be made.

The association has argued that the move would be detrimental to the local food wholesale and retail industry.