est. 2007

Barbados Underground

Bringing News and Opinions to the People

, , , ,

Cost Of Living in Barbados Out Of Control Like A Runaway Freight Train

Organized Response To High Prices Needed Published on: 7/17/07. IS ANYONE INTERESTED in the welfare of the lower-income workers in Barbados, or have we become a society where the rich get richer and the poor get poorer? Every day in Barbados one can hear of some increase in goods and services – from food to…

, , , , ,

Organized Response To High Prices Needed

Published on: 7/17/07.

  1. IS ANYONE INTERESTED in the welfare of the lower-income workers in Barbados, or have we become a society where the rich get richer and the poor get poorer?
  2. Every day in Barbados one can hear of some increase in goods and services – from food to telephone, flour to gas. What is really happening in Barbados?
  3. Does anyone realize that a chicken in some supermarkets is at least $20 and that some families of five or more cannot afford to eat a chicken until on Sunday?
  4. How a single is mother to food, clothe and school her children and still get herself to work every day of the week?
  5. Who are we to complain to? Who is looking after our interest?

We do not have the money or the power to fight a battle, but the cost of living in Barbados is killing our society little by little. Yes, I know we have to try to survive but it is becoming increasingly difficult month after month for some of us. I do not want to hear that we are living above our means, because that is rubbish at this point. The money we take to the supermarket can only purchase the staples; there is no room for luxury foods.

What is the present Government doing to help us, and what will the Opposition be able to do if elected? I personally want to hear from both sides how they will solve this inflation.

One thing for sure that we can see is that our wages and salaries are not moving, or if they move it is by very little. Are we keeping too quiet? We need to form a strategic alliance and say what is happening to us, speak out about our concerns before our predominantly black societies become extinct.

Come on, Barbados, we are becoming a place that is very expensive to live and survive. I need to hear more comments.

DELLEMAR TAYLOR

Source: Nation Newspaper

 

span11l.jpg

The issue of the high cost of living has been an abused discussion in Barbados. We say abused because the stakeholders in Barbados, both governmental and non-governmental, have not addressed it with any clarity of purpose. As general elections approach, our Prime Minister has been singing the praises of his government’s achievements. He has been preaching of the low unemployment which is tagged to a booming construction sector; the experience of an incumbent government that the public should feel safe as it sails into the turbulence waters of a world economy. All the macro indicators certainly look satisfactory. BU remain concern about the sluggish approach by a Barbados Labour Party government after 14 years, to strategically reposition the Barbados economy to generate the foreign exchange required to pay for the high life style to which Barbadians have become accustomed and of which we boast to all and sundry. The perception of our West Indian brothers and sisters over the years has been blinkered with envy at our fortune. The continual dissecting of our prime real estate, to be sold to foreigners, is a plan mired in stupidity by the men in our government who have been educated at the highest levels.

Get Barbados Underground RSS Feed

The letter quoted above which was sandwiched in the Nation newspaper on July 17, 2007, struck an emotional chord with the BU household. Naturally, we empathize and join with the writer in lamenting the absence of a plan to mobilize resources/agencies in the country to address the runaway prices currently prevailing at our retail outlets, especially our supermarkets. Unlike the “fat cats” in our government who can afford to shop at the prestigious BS&T supermarkets, the plight of the working poor continue to create tension in our society. Obviously, they are the defenders of the status quo who will point to citizens who live in government housing, owning cable TV and enjoying a lifestyle that belies their stations in life. We say to those people that we would be scratching the surface of the problem if we accept those red herring arguments.

Today in the news, we heard spokespersons from several bakeries crying out at a recent 12% increase in flour, which will obviously affect the retail price of bread, a staple food in the food basket of the poor and working class groups. The plight of our working poor must be held-up against the gush in government spending that is currently underway. Only today we heard Minister Barney Lynch announcing to the nation that four air bridges will be installed at the remodeled Grantley Adams Airport at a cost of twenty one million dollars. No doubt as general elections draw closer, we will see another level of spending which is geared to return the incumbent, and to hell with the stress on the current account of the country. Our government that has boasted of their prudent management to date will be quite prepared to depart from its careful strategy. BU surmises that the government, as a recourse, can always“print more money” even if it exceeds the limit established outlines in the Financial Rules of the country; who cares with a toothless Auditor General and an ineffective Public Accounts Committee in position.

12% price hike in flour

Faced with massive cost of living expenses, Barbadians will have to dig deeper in their pockets to pay anticipated increases in bread prices. Operators of bakeries tell STARCOM NETWORK NEWS, the 12 percent price hike in flour to bakeries from today, will significantly impact their operations and customers. One Baker said Bajans are going to “holler for murder.”

Source: VOB

Individualisation of companies losing to mergers

Should we remind readers of the recent levy that will see the reconditioned car preferred by the working class being pushed out of reach? What about the skyrocketing real estate prices? We have already mentioned the food prices in our supermarkets; even the efficient pricing of fast food can play an important part in the Barbados society, which has become all about convenience given our hectic lifestyles. Let us not forget the utility companies that continue to rake in the dollars while not offering competitive products, when compared to our neighboring islands. How can our communications costs continue to be so high in a world that is driving itself on the effective use of cheap communication technology? Let us not forget the Barbados Light & Power Company, which continues to depend on petro-based fuel to create electricity in Barbados. Should they not have seen their role as partnering with government and private sector to provide cheaper sources of energy? The economics of price in Barbados cannot be fundamentally changed for the betterment, as long as these utility companies continue to play a passive role in the countries development.

The lack of attention to our run away cost of living has become so out of control that we are not sure if the government knows how to fix the problem. We are hopeful that as a society we can come together to encourage debate on what is a bread and butter issue. How long can we continue to build an economy which rake in unprecedented and indiscriminate collection of VAT monies? After several years of operating our government find it difficult to adjust the rate of VAT on staple goods in which poor people require to live. What about the effort which Minister Lynette Eastmond and her ministry sought to engage which highlighted pricing anomalies among several supermarkets in Barbados? Should BU assume that a lack of follow-up resulted from a “shaky” approach, pressure brought to bear by the “big-ups”, or are we being too harsh because the follow-up maybe in slow progress?

We have to feed our babies.

We have to feed our old people.

We have to feed our families.

The biggest disappointment on this matter is directed at our government in waiting, the Democratic Labour Party. This issue should be whipped to a frenzy because high food price is an issue that will always get people’s attention. It speaks to survival and despite what is being said by our Prime Minister, the cost of living in Barbados is high.

BU answers the questions posed by Dellemar Taylor by saying the leadership of Barbados is now concerned with preparing Barbados for CSME. Issues of a domestic nature have been relegated. Ministers like Lynette Eastmond et al appear out of touch with the people on the ground. When a government begins to lose that connection the vacuum is filled with malcontent. One quality which I have always admired about Arthur over the years has been his solid connection with the people. In recent times it appears to BU that he has become so enamored with creating a legacy of Caribbean Statesman that matters on the domestic front have been left to simmer.

Let us hope that for the country’s sake, he is able to arrest the high prices which Barbadians continue to suffer in silence.

93 responses to “Cost Of Living in Barbados Out Of Control Like A Runaway Freight Train”

  1. Hmmmm Avatar
    Hmmmm

    You have said exactly what I have been saying in all the fields under discussion.

    The thing you must remember is that as a country becomes wealthy more and more consumer goods, fridges, stoves etc flys off the shelves and that is a normal thing and good for the economy. But not like how it is happening in Barbados where you have about 300,000 but only 100,000 or a 150,000 being able to enjoy the prosperity if you can call it that.

    In developed countries and I am taking some of these figures off the top of my head. Suppose you have a City or Town with 300,000 people living in it which is comparable to Barbados.

    I would say you would probably have a hundred at the most being street people (destitute) but they are soup kitchens, warm shelter etc provided these people WHO WANT IT. Some bluntly refuse to take handouts and that is a fact. Most of these people are drug dependent.

    You might then say in that population level about 500 to a 1000 are poor but many because of Government pensions and other help from social Agencies survive well eating three squares having a modest roof ovcr their heads and the amenities of electricity, heat, water etc. But they are considered poor. They all get free medical care from the best doctors and hospitals. In other words the rich are not the only ones who get the best. The rich see the same doctors and specialists that the poor do and are treated at the same hospitals and at the same level.

    The rest of the population in that City live like any other City some are Big Ups living in Big Up homes and neighbourhoods but the most are midddleclass and working stiffs all have homes, cars, eat well, dress well etc.

    The point I am making is these types of numbers are reasonable and proportionate when it comes to rich, middleclass, poor and destitute. I know of few places where you have a City of 300,000 and 150,000 are close to poverty or living like how many in Barbados live! And I am not the only one saying this!

    In Barbados the problem is and I understand that they are specific reasons for it you are either rich or middleclass and the rest are all struggling or in poverty. A society cannot work like that when millions are being spent on rubbish. This is a problem that needs immediate attention and fixing.

    But here is another thing. You say big countries have more suppliers etc and that is why food is cheap. That is a very simplistic answer.

    When a buyer from Barbados goes to England or North America to buy chicken, beef, flour or whatever. The Bajan is buying from the same supplier as the North American is. He/She gets a similar and competetive wholesale price maybe not the same as someone buying 500,000 or a 1,000.000 turkeys at a time.

    Therefore my point is too much blame is being put on nebulous factors to justify high food costs that just isn’t true. But let us say you are correct then the Government and Grocery chains have to do something about it because the way it is going 100,000 Bajans could well be suffering from mal nutrition which is getting no better as prices continue to escalate.

    Take a can of corned beef. Look at how much that has gone up and most of it comes from South America for Gods sake. Are you telling me that labour costs and shipping costs in South America alone can justify the increase in this product. It is a bloodsy rip off.

    All the grocery stores in Barbados need is to maintain the present level of wealthy and middleclass customers they have and their profit level is quite healthy thank you and they are not complaining. They do not need to care about the other 150,000 who cant buy corned beef. No responsible country or Government can operate like that without eventually running into serious social problems. The important issue is the masses when they constitute almost a third or more of the population who are living in poverty many because of no fault of their own has to be addressed.

    You casnnot tell these people tariffs, freight etc etc is driving up food costs and foreigners are driving up land costs. This is not their problem. They are two and three generation Barbadians that have to be factored into the equation.

    The Government says we are a small island we have no industry to speak of that is why so many have no jobs. Well tax the foreigner and others to provide those living in poverty with basic food and shelter. If the problem is home made and outsiders and the wealthy are exacerbating it then they should fix it!

    There are answers but the Government and those in lofty positions simply do not want to fix it! Because some of the solutions are hard on those living nthe good life!

  2. No Name Avatar
    No Name

    Hmmmm the above is from me I am sorry I used your name.

    Interesting stuff in our Nation News this morning. All of the Big Up Grocery giants crying about price controls while saying we can work with Government on some items. Funny nuh they can work now that they are being forced to work.

    The next shoe will fall when the Supermarkets call on the Commissioned Agents to drop their greedy mark ups and then things will settle down. Or a better scenario will be the Supermarkets dropping the Commissioned Agenta all together and do their own buying direct.

    Then we have millions in Foreign Exchange leavingn the island as barrels pour in, in record numbers. Even Commercial outfits are bringing in Appliances etc.

    Look at all the business barbados stores are losing because of GREED! Even if I had to mark down my products to get a piece of this overseas shopping I would still be ahead of the game. But look at it this way. The barrels are the real competition to Bajan stores and Bajans should step up this kind of shopping!

  3. superlative1 Avatar
    superlative1

    No Name sometimes I am truly left asking if you know anything or just like the feeling of keys under your fingertips. How can you say,

    “Barbados has to import most of their products and blame the high cost at the REATIL level mainly on that because of freight, duties, higher oil prices and inflationary trends. This is all relative as North America have these pressures too. And in addition pay higher labour costs, property, income taxes, Store overheads and a host of other costs that Barbados businesses do not pay or pay at lower rates.”

    That is the biggest bunch of nonsense I have ever seen next to G.W. Bush’s justifications for invasion of Iraq. America produces AND exports the majority of things they need. Even the foreign companies have manufacturing enterprises and factories there (see Toyota, Mitsubishi, Sony etc.) They have the land, they’re industrialized, they have the government grants and levies they have SO MANY MORE facilities to crush us economically yet you want to give people the impression the American manufacturers and business owners are in the same boat as the Barbadians? Sure we’re in the same ocean however, as we’re in a moses, them gine long in a speedboat.

    And on another issue, your use of derogatory terms to EVERYONE is annoying especially considering the fact that a) You’re misinformed, b)misleading and c)could really benefit from a spell checker! Try doing research on the arguments you wish to present instead of using such juvenile tactics as ‘name calling’ to get your point across. If you can’t manage that, stay out of intellectual debates.

  4. superlative1 Avatar
    superlative1

    No Name sometimes I am truly left asking if you know anything or just like the feeling of keys under your fingertips. How can you say,

    “Barbados has to import most of their products and blame the high cost at the REATIL level mainly on that because of freight, duties, higher oil prices and inflationary trends. This is all relative as North America have these pressures too. And in addition pay higher labour costs, property, income taxes, Store overheads and a host of other costs that Barbados businesses do not pay or pay at lower rates.”

    That is the biggest bunch of nonsense I have ever seen next to G.W. Bush’s justifications for invasion of Iraq. America produces AND exports the majority of things they need. Even the foreign companies have manufacturing enterprises and factories there (see Toyota, Mitsubishi, Sony etc.) They have the land, they’re industrialized, they have the government grants and levies they have SO MANY MORE facilities to crush us economically yet you want to give people the impression the American manufacturers and business owners are in the same boat as the Barbadians? Sure we’re in the same ocean however, as we’re in a moses, them gine long in a speedboat.

    And on another issue, your use of derogatory terms to EVERYONE is annoying especially considering the fact that a) You’re misinformed, b)misleading and c)could really benefit from a spell checker! Try doing research on the arguments you wish to present instead of using such juvenile tactics as ‘name calling’ to get your point across. If you can’t manage that, stay out of intellectual debates.

  5. superlative1 Avatar
    superlative1

    Furthermore your ‘examples’ are retarded though I am not surprised given your previous arguments all had the water retention capability of a sieve. Anyway, if a TOWN or a CITY has the same number of people as Barbados, clearly the COUNTRY that city/town is in would have to be greater! You cannot keep comparing little Barbados with larger territories in life or in example!

    FURTHERMORE you always go on about how things in Barbados (and the rest of the Caribbean) are expensive because of ‘rampant government spending, mismanagement and third world economic policies?’ While going on about how wondrous America is… 1)Do you even LIVE in Barbados? 2)America, the same country who is TRILLIONS of dollars in deficit, has no universal health care, requires drug plans which those dependent on medications have to foot part of the bill for even the subsidized medicines and has poverty like we have never seen!

    It’s people like you who are a FRUSTRATION to those who know better! READ SOMETHING OTHER THAN WHAT YOU TYPE!

    Educate yourself. Peace.

  6. HMMMMM Avatar
    HMMMMM

    No Name please do not use my name again or I may be forced to copyright it.

  7. No Name Avatar
    No Name

    Hmmmm I agree with you please do not sue me cause I ent got to money. Just cut me some slack as I am in the early stages od senility.

  8. No Name Avatar
    No Name

    I do not respond to UWI “Professional students” not capable of holding down a job and who are not dry behind the ears nor do they know their ass from a hole in the wall.

    I suggest you take your vendetta with life and agaibst it up with Professor Beckles as I pay no attention to the rubbish you post!

    You are the one that needs to seek Peace not me! I ignore you but you cannot take a hint!

  9. superlative1 Avatar
    superlative1

    I have been taking your ‘hints’ however, as this is an open forum I am free to respond to whatever I wish given the consent of the moderator and author of this blog.

    If you think your semi-literate attacks on my character will phase me, you are beyond the initial stages on senility.

    Since you are so much woman, if you have something to say to me feel free to email me at 246superlative1@gmail.com.

  10. No Name Avatar
    No Name

    There you go again accusing me of being a woman!

    Where did you get that information from? Because you are wrong again and I have no reason to lie.

    I try to give people like you a wide birth because you are like a bull in a china shop.

    Use the brains you claim to have and stop jumping to conclusions and showing your immaturity.

    I have nothing further to say to you go on your merry way and leave me out of it!

  11. Straight talk Avatar
    Straight talk

    Super1:

    Seems you should do a little more research before maligning fellow bloggers.

    You said “America produces AND exports the majority of things they need.”

    FACT in eight of the last nine years the USA has been a net importer.
    In 2005 their trade defecit was running at US$ 805 billion p.a. and rising.

    P.S. NoName lives in GTA.

  12. No Name Avatar
    No Name

    In addition the USA is dependent on Canada for most of its oil and much of its electricity. But why waste time talking to those that know it all!

  13. superlative1 Avatar
    superlative1

    Straight talk, educate us all, what are the major imported products into the US of A?

  14. superlative1 Avatar
    superlative1

    http://www.tradingeconomics.com/Economics/Balance-of-Trade.aspx?symbol=USD&gclid=CIfvvZvd5o8CFQdEFQodan3R6w

    In particular
    “Imports increased 0.6 percent to $196.6 billion, the second highest on record. Americans bought more crude oil, automobiles and computers from companies overseas.

    The price of imported petroleum rose to a record average $68.51 a barrel in September. Still, a decline in the amount of crude purchased kept the oil-import bill little changed.”

    My point: Primary imports into America luxury versus necessity. I stated they produce most of what they NEED not ALL that they need 1, and 2 emphasis must remain on the fact that with such a great expanse of area, they can always get things cheaper in bulk because the demand is sufficient to deal with such an import. We cannot as our market is minuscule in comparison.

  15. Frankology Avatar
    Frankology

    a) Generators working at part load which reduces their efficiency and transferring more costs to the residential sector.
    Thanks for letting the public know of the RAPE OF CUSTOMERS.

    a) Generators working at part load which reduces their efficiency and transferring more costs to the residential sector.

    b) As commercial and industrial enterprises increase their electricity use which may or may not be purchased from BL&P the company still has to have the generators to support them should they ever need it. Meaning this extra generation capacity cost is passed on to the residential sector.

    Let’s look a comparable scenario. A restaurant will produce enough food to serve would-be patrons who numbered 75 daily at a cost of $20.00 each. Suppose 30 people turn up for to eat, should the restaurant pass on the loss based on reduced demand and increase the cost to $25,oo to all the other customers?

    This is what you are saying, loss in revenue caused by major users = increase to other customers to offset loss. Awaiting your reply.

  16. Frankology Avatar
    Frankology

    That is for Hmmmmm to answer

  17. Frankology Avatar
    Frankology

    Here is a critical situation that might affect the BS&T buy-out.
    Customers getting a reprieve from Supermarkets
    Supermarkets hoping to get a reprieve from Supplier.
    Supplier hoping to get a reprieve from Customs.
    Customs hoping taxes would be lowered by Government.

    We are doing in the reversed.

    Government should deal with the various taxes and place price control with immediate effect. That would reduce all the long talk abour price reduction.

    Wonder if Neal & Massey will still be interested in the buy-out of BS&T with a reduction in ASSETS. Jus’ a man in the street observation.

  18. Frankology Avatar
    Frankology

    With the proposed cost reduction, here is a serious problem that might effect the BS&T/Neal & Massey merger.
    Customers getting a relieve from supermarkets
    Supermarkets expecting relieve from suppliers
    Suppliers would like relieve from Customs
    Customs will have to get relieve from taxes
    Taxes are control by Government.

    That mean Government has the instrument to relieve the High Cost of Living. Instead of all these joint meetings, reduce the various taxes, institute a Price Control mechanism and presto! with constant monitoring we will be seeing some competitive pricing and Neal & Massey will back off from this buy-out because with a reduction in revenue, you will have a reduction in value of the company.

  19. David Avatar
    David

    What has come of the many years the BL&P promised that they were well into exploring alternative sources of energy? Is it realistic to expect that the BL&P would push an energy program which would not rely on petro-based products?

  20. Frankology Avatar
    Frankology

    The other area of alternative energy is the Wind Turbine project at Lamberts, St. Lucy, but due to the unsightly aspect of these tall structure, environmentalist are crying out with their erection on a Barbadian Landscape. I saw in another part of the world, people came up with a creative idea to strap coconut tree look-a-likes to make it environmentally pleasing.

    At present, an Impact Study and Assessment is being formulated due to outcries from residents.

    This is the only system that would not involve green house gases.

  21. Frankology Avatar
    Frankology

    There is a school of thought that the erection of wind turbines could cause unemployment, since you do not need that amount of personnel to deal with production.

    This is the equation:
    Wind turbine = less fossil fuel = less import from Trinidad and Venezuela = less foreign exchange = savings to the consumer.

  22. HMMMMM Avatar
    HMMMMM

    Frankology a comparison between a restaurant and an electricity provider is not the same thing. Because any restaurant can say ok, we made too much of a loss yesterday, so today we gonna reduce our production just in case, if more people than expected come they may have to wait a little longer for their meal but we can cook it. This is called demand following which is simple in that sector, but a utility cannot bring out and put back in generators in such a fashion. And if you do some research, with any electricity provider anywhere in the world the industrial and commercial sector help to subsidize the production for the residential sector due to the fact that bigger turbines running at full base loads is always way more efficient than smaller generators. What would you like BL&P to do? They are bound by law to have the capacity they have right now. Unlike the restaurant they cannot decide the when and how much they will produce. Plus just like the restaurant they cannot afford to operate at a loss either. So as I said before it is policy that needs to be changed so you need to look to the FTC and the Government and stop saying BL&P doing this and doing that. The long and short of the matter is that further subsidies need to go towards the residential sector which means government funds and intervention.

    As for renewable energy sources. BL&P has been doing research into different technologies, namely wind, solar and wave technologies. Wave is too immature at this point since there have been only 2 utility scale projects to speak of to this day. The most mature renewable energy technology happens to be hydroelectric power but since Barbados has zero water resources this is not an option. Now solar is fairly mature but it is more feasible on small (individual scale) so on a utility scale they can only lobby for policies (net-metering where you buy and sell electricity that you produce via solar pv panels) which is being done. Solar can be quite helpful in bringing down energy cost provided that persons are ready to make the investment just like how many have done with solar water heaters. A few Barbadians have been producing their own electricity for a while now and it can be worth it in many cases. If you would like more info on such, costs and benefits etc. I would be glad to oblige.

    Now that brings me to wind technology. BL&P faces 3 major challenges in terms of installing wind turbines. The first which you have mentioned is environmental impact. Since it is a relatively new technology here in the Caribbean it brings many doubts where many of the analysts find it hard to make decisions and the residents not knowing much would rather avoid any potential problems. I have seen 3 wind farms in my time and I think they are quite amazing and actually bring life to the landscape, but that is my opinion and the matter is quite subjective and has a lot to do with aesthetics since there are no other major environmental impacts per se. The next major problem is space. With the rapid growth of our population space is limited and building near turbines is not recommended. This suggests that when these turbines are erected this land can be used only for agriculture or recreational facilities like parks etc. but should not be built on. These turbines must also be spread widely so that one does not affect the aerodynamic efficiency of the other. Plus due to only moderate wind speeds even more space is need to provide an appreciable amount of electrical energy. A 10 MW installation on a few square MILES (remember we only have 166) will produce about 2 MW on average or about 3% of the islands energy use, saving only a couple million in fuel per year. So job loss, less import, foreign exchange etc. will be generally insignificant. The next major challenge is that these turbines are massive, taller than the Central Bank which means serious civil works causing extremely high installation cost not including the fact that cranes and other equipment would have to be hired from other countries because there is nothing in BIM that could nearly lift something so heavy so high. Plus since all major manufacturers are European they will be serious freighting costs. On an island of this size wind technology is still prohibitive at this point so please don’t say no research has been done to ease the suffering of the working class because millions have been spent on these studies and others. Wind like solar can be more beneficial on a residential scale, depending on location and provided an investment is made, I would gladly share information on this as well. A utility can only do so much. Energy costs will continue to rise and a lot of responsibility falls on the consumer as well.

  23. Frankology Avatar
    Frankology

    I know that a power company must have a greater supply base, I just use the analogy that we must always ensure our demand do not take over our supply. Remember, the power company budget for a stipulated supply, and although a price increase might take place, no where should it increase to the magnitude of our present light bills; and any increase could be absorb by the company, because when we add up the $20.00 here and the $100.00 there, yet we might not utilising any more wattage.

    From your own submission, you said once electricity usage is decrease, consumers are responsible in offsetting the shortfall.

    By the way, are you a personnel of the BL&P. Your submission sounds like policy.

  24. HMMMMM Avatar
    HMMMMM

    I still don’t think you understand the problem in totality. Let me give you an arbitrary scenario using your same restaurant. Say you had a restaurant and 100 customers, 50 are normal individuals and 50 from a large company. Now it costs $100 a day to provide food for all 100 customers, this includes overhead charges for staff and space to house all 100 customers in your restaurant and a profit, but if you only cook half the food you lose the power of bulk purchase and size so costs are $75 a day to provide for 50 customers only. Now you being the biggest and most powerful restaurant in the land the Government tells you that you must have the facilities and resources to provide food for all 100 person no matter what. So you don’t even have the option of reducing overhead or staff etc. due to the fact that any day you could have to serve all 100 persons. But that same government turns around and provides food products at cheaper rates to the company. So the company realises that if it cooks its own food for its 50 employees it will end up cheaper and decides to make the investment to do so with no worry at all for insurance etc. because they know that should a day come that they cannot provide this food that they could always get it from you. So on a day when you are providing your optimal 100 meals each customer pays $1 for their meal. But when you company customers don’t come your 50 normal customers end up paying $1.50 for their meals which is a 50% increase on their part. Now imagine that your costs rise due to increase in food costs and renting your space, but the large company who is still getting food at good rates does not incur much of these costs which means it is even more favourable for them to cook for themselves and they tell others so a set of your normal customers who work for a smaller company of 10 realise that now stuff has increased it is more profitable for them to invest in their own kitchen and stuff so that is what they do. Which gives your remaining 40 customers yet another jolt even if they buy the exact same meal everyday. Your customers start to complain and you appeal to the government to do something and they tell you they will look into it but so far nothing concrete has come out of it. Now are you going to:

    a) run your business into the ground by working at a loss (you can do some research on the Guyana electricity company and you will see the effects of that).

    b) try your best to work with the situation the best you can.

    It might seem like a silly scenario but it is the reality of it all.

    I hear a lot of talk about absorbing costs etc. This is a business, I don’t see Cave Shepherd or Supercenter or much less Cable and Wireless (who by the way have no such laws imposed on them and have significantly reduced their staff in the past few years, are making few improvements due to the already extensive fiber-optic network they have invested in for years now and continue to increase charges on a quarterly basis with the same horrible service and blatantly disregarding interconnection laws making it difficult for competitors) or any of the others absorbing costs because shipping and fuel costs have gone up. As a business you do what you can but this is not the age of robin hood so one must be realistic. When the cost of flour went up bakeries had to pass it on because operating at a loss or near loss makes no business sense. As I said before this problem lies in the hands of two groups. The government creating policies that are actually beneficial to everyone as a whole and not a select few and the consumers in making investments on their own accord.

    And no I am not a BL&P staff member, board member or shareholder.

  25. Frankology Avatar
    Frankology

    Don’t think that I condone the practices of certain companies of passing on additional costs to the consumer. I am against such action, as a matter of fact, I must state my language circled these businesses that have sole control of essential services. In my submission, I was never dealing with reducing output, regardless if it is a restaurant or BL&P, I was dealing with maintaining an output ceiling and absorbing a percentage loss, instead of raising consumer costs due to these increases or your famous statement of passing on costs due to a shortfall from major users.

  26. HMMMMM Avatar
    HMMMMM

    Well I believe your desires are quite improbable because all of these things are highly subjective and policies need to be passed across the board and not selectively. I don’t believe in companies reaping exorbitant profits, but by law the government cannot force anyone be it my small business, your medium business or a large enterprise to absorb costs. In a democracy we cannot limit how much another person gains that is part of being a free entity. One could try to regulate through taxes etc but there are always limits. From your disposition I am almost certain that you do not own a business, because if you did I think your outlook would be a bit less idealistic.

    The long and short of the matter is that you simply cannot tell a man how much profit he can make, if so there would be no rich or poor, that is the primary disadvantage of a democratic nation, there will always be inequities. There is only regulation especially in terms of monopolies and that is where competition comes in etc. So lobbying profit-limiting regulations is pointless, one would have to change the entire constitution. What are needed are even across-the-board policies, proper enforcement of them and promotion of healthy competition. Do not forget I am affected as well by high electricity prices but I cannot expect the government to go say “BL&P we have decided that your previously decided profit margin is looking too large to us now that customers are being affected by rising fuel prices, so we command you to assimilate these costs!”

    Not going to happen.

  27. Frankology Avatar
    Frankology

    That is why I say, tax companies with excessive profits and place that money for the building of homes for Barbadians.

  28. Avatar
    Anonymous

    I met a bright young man the other day who works for the BLP as an economist/researcher at a BLP meeting – it was my first meeting and possibly my last. It was empty of ideas.
    In the background one man was saying that if only he (meaning the bright young man who was once in prison) was out of prison and Mascoll was in, Barbados would be a better place!
    The BLP supporters really dont like Mascoll at all. The PM has pressed him on the party and many members hate it.

  29. frankology Avatar
    frankology

    Anonymous:
    You probably was listening to the wrong person. He might be one of you. Don’t you think?
    These are statements that do nothing for the education of these posts. Let’s get serious, both BLP and DLP.

  30. Wishing in Vain Avatar
    Wishing in Vain

    Anonymous on the evidence that we are seeing I agree with you that OWing has enforced his wishes on the blp regime and people such as mottley despise him and will do whatever she has to do to remove he ASSCOLL from being around meanwhile Owing is carrying out the same mission on mottley so two dogs can play at the same game lets see which one wins.

  31. Price Control By Another Name? «

    […] Cost Of Living in Barbados Out Of Control Like A Runaway Freight Train […]

  32. The Cost of Living In Barbados «

    […] Cost Of Living in Barbados Out Of Control Like A Runaway Freight Train […]

  33. sodomizer Avatar
    sodomizer

    Can I simply just say what a relief to find somebody who genuinely knows what they are talking about on the internet.
    You certainly realize how to bring an issue to light and make it important.
    More and more people ought to check this out and understand this
    side of your story. It’s surprising you aren’t more popular because you definitely possess the gift.

  34. student Avatar
    student

    Howdy! Someone in my Facebook group shared this website with us so I came to check it out.
    I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my
    followers! Superb blog and amazing design and style.

  35. amigos1.com Avatar
    amigos1.com

    Ahaa, its nice discussion about this piece of
    writing at this place at this blog, I have read all that, so now me
    also commenting at this place.

  36. att systems Avatar
    att systems

    I absolutely love your site.. Pleasant colors
    & theme. Did you make this amazing site yourself?

    Please reply back as I’m trying to create my own website and want to find out where you got this from or exactly what the theme is named. Cheers!

  37. hotel in general santos city philippines Avatar
    hotel in general santos city philippines

    Howdy! Do you use Twitter? I’d like to follow you if that would be ok. I’m undoubtedly enjoying your blog and look forward to
    new updates.

  38. cougar mom Avatar
    cougar mom

    Hey there outstanding blog! Does running a blog such as
    this take a lot of work? I’ve absolutely no knowledge of computer programming however I had been hoping to start my own blog soon. Anyway, should you have any suggestions or techniques for new blog owners please share. I understand this is off topic but I just had to ask. Appreciate it!

  39. Pearl Avatar
    Pearl

    May I simply just say what a relief to discover an individual who genuinely understands what they are talking about on the net.
    You definitely understand how to bring an issue to light and make it important.
    A lot more people must look at this and understand this
    side of the story. I was surprised you’re not more popular since you most certainly possess the gift.

  40. where can i buy fem dophilus Avatar
    where can i buy fem dophilus

    Way cool! Some very valid points! I appreciate
    you penning this write-up and also the rest
    of the website is very good.

  41. Conference rooms Avatar
    Conference rooms

    My partner and I stumbled over here from a different web page
    and thought I may as well check things out. I like what I see so now i’m following you. Look forward to checking out your web page yet again.

  42. www.wattpad.com Avatar
    www.wattpad.com

    when a retail boom is expected in a region, you may determine it profitable to purchase a property that you can change
    into a warehouse for the intent of renting to small businesses.

    As you swish the oil around you mouth, in between your teeth,
    and around you gums, the oil will attract the bacteria hiding in your gums,
    under the small crevices, and in the pores and tubules within
    the teeth. The French as well as some English economies of
    the time were typical mercantile economies.

  43. Harry "Crock" Hinds Avatar
    Harry “Crock” Hinds

    This will always happen if you put people in control of a business (Barbados/Island)
    The government who do not have the majority of members with any practical experience of running a business successfully with at lease ten to 20 years experience and have easy access to other people’s money (the people of Barbados) will fail. It will only be a matter of time, before leaving at the end of they time, very rich leaving the investor BROKE (Barbados/Island). Possibility, let all interested successful Barbadian business owners of $10,000,000 turn over or more per year submit their application for government, with 11 of them being picked out of a box to represent a parish, the parish will also be picked out of another box plus another 11 persons being picked as assistant to the minister and do this process every 4 or 5 years. Note this is only an idea rather than continuing with the old system that is NOT WORKING.

Older Comments
1 2

Leave a Reply to att systemsCancel reply

Trending

Discover more from Barbados Underground

Subscribe now to keep reading and get access to the full archive.

Continue reading