I am just fed up with the mark-ups . . . I was in a supermarket recently and I wanted to call the health inspectors. The quality of the English potatoes was so poor! So you are not only paying more money, but getting poorer quality,” Benn added…Sir, I have being complaining for the last five years and no government department takes me on. I am further convinced some importers are importing low grade or rejected potatoes which are not fit for human consumption – Minister of Commerce Haynesley Benn (Nation)
It started with Minister of Finance Christopher Sinckler making the charge at the kick off by-election political meeting in St. John that retailers have been ripping of consumers in Barbados. He went on to challenge officers in the ministry of commerce to getup off their backsides and patrol the supermarket aisles to ferret out and expose cases of ‘price gouging’. On queue a couple days later Minister of Commerce Haynesly Benn paraded a number of items to the media, which at face value, supported Sinckler’s case that retailers have indeed been pricing products unreasonably high. It is at this point things have become very interesting.
Both political parties have struggled over the years to rein in the cost of living. Before the recession when there was plenty of money in circulation an already passive Barbadian consumer had become price insensitive. Well into the throes of a global recession of the worst kind, a desperate government which has over promised and under delivered on reducing food prices faces an uphill battle. It should be obvious in the prevailing economic climate that it will be well-nigh impossible to significantly reduce prices. It does not mean that as a country we should not be vigilant to the practice of what is termed ‘price gouging’. The Fair Trading Commission (FTC) which was setup to safeguard the interest of Bajan consumers has been asleep at the switch from its inception. To add to the problem of government the Washington Post reported yesterday that the battle is on to keep global food prices from soaring.
The issue of high food prices like most things in Barbados has become a heavily politicise one. Wholesale distributors and the major retailers are in the main controlled by the merchant class. The inability of successive governments to effectively manage food prices clearly illustrates a case of those who control the economic power trumping those who have the political power.
It is interesting that after Ministers Sinckler and Benn pressured retailers by accusing them of ‘price gouging’, head of the Barbados Chamber of Commerce (BCCI) Mr. Andy Armstrong like a good lapdog yelped in defence of the indefensible. To the surprise of many, he accused the small players in the market as the ones guilty of ‘price gouging’ and accepted no responsibility that members of the BCCI were guilty by outlining what his group intends to do about it. It is a commonsense position to know that small retailers in Barbados to survive cannot be overly aggressive in the pricing of products given their target market. President of the Small Business Association (SBA) Celeste Foster reacted to Armstrong’s disingenuous defence by saying as much.
To break the stranglehold which the merchant class has on food distribution in Barbados will be messy. Whether the government has the courage to succeed in the task is doubtful given the advantage which money brings. The last time the DLP attacked the merchant class in Barbados it paid dearly in 1991. What is happening now seems like déjà vu.
Why did the Ministry stop publishing the prices of selected products? A prominent blogger has stated that the ministry of commerce explained it was too expensive an undertaking. If that explanation is correct it demonstrates a backward thinking which easily explains why the ministry has been ineffective to date. Why is our media so passive on this issue? It is one thing to report ‘in your face’ news but how about publishing a price comparison on page two of the Sunday Sun weekly? Use a five minute slot on the talk shows to do the same. We all know why local media houses would be reluctant to ‘finger’ companies by name -they would ‘piss-off’ advertisers.
It is evident from Andy Armstrong’s response that even his group (BCCI) is inclined to point the finger at government. Government has a significant responsibility to keep the cost of living down, a good place it can begin is looking at port handling and customs processing also other key stakeholders will have to step up.
The passive DNA of Barbadians predisposes them to want to avoid being contentious and the merchant class is fully aware of this Bajan characteristic. Agencies like Barbados Association of Retired Persons (BARP), the Church, Credit Unions and other NGOs will have to join with government to lead* the way to breaking the stranglehold the merchant class has on the Barbados market. It will call for a holistic effort!
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