Welcome to Bahamas Local, Your Bahamas Online Search Engine

Halkitis: I'm still waiting for ideas from retailers over price controls

Wed, Oct 26th 2022, 12:00 PM
Tribune Stories

ECONOMIC Affairs Minister Michael Halkitis said he is awaiting suggestions from retailers about the government's expanded price control list.

He noted that beginning November 1, the government anticipates that the new margins will be in effect in the retail pharmacies as well as retail stores.
“Well, I wouldn’t style it as negotiations because you know, we have amended the orders, and what we have done is not gone to full enforcement of the new orders yet, because in our meeting with the retail grocers last week Monday, and as well, we had a meeting with pharmacy retailers and as well as pharmaceutical wholesalers this past Friday, where they expressed similar sentiments about notice and being given an opportunity to make the adjustment. Of course, they did not agree with the new margins,” he said yesterday.
“But we stress to them that this is a temporary measure in the first instance that we will review afterwards. And we committed to look at some other things that impact their business. So what we have agreed the retailers did ask for an extension to the 28th, which is this Friday, in order to get us some suggestions on how we can, you know, achieve what we’re trying to achieve, ie bringing down prices, and minimise the impact — (I am) waiting to receive that, as of now I haven’t received it as yet.”
He added: “So what we indicated was that, you know, Friday’s the 28th, what we will do is we will give until November 1. And beginning November 1, we will expect that the new margins will be in effect in the retail pharmacies as well as retail stores.”
The Ministry of Economic Affairs, in a statement issued on Friday, confirmed that food retailers and wholesalers, plus their pharmaceutical counterparts, have until October 31, 2022, to complete the transition to the new price-controlled margins and mark-ups - effectively granting them a week’s extension. Price control inspectors will not begin enforcement of these changes, whatever they ultimately may be, until November 1.
Asked about penalties for those who do not comply with the impending changes, Mr Halkitis said the government wants to ensure the regulations are being met.
The minister explained: “There are various penalties within the law but what we want to do is have an opportunity to have people comply, and failure to comply, then there are other monetary penalties. But the idea is that, you know, we’re not coming down with a heavy hand, so to speak or sledge hammer, but we just want to ensure that the regulations are being met.
“And we think that this time, you know, it will be approximately two weeks since the amendments were made, that we will be doing the enforcement and we think that’s adequate time to make the adjustment. And as we said, in the first instance, it’s a temporary measure, we understand everything that the businesses have told us about the potential impact on their bottom line and the cost and how it’s affecting everybody. But what we stressed as well, is that the government has made some efforts on its behalf.
“And this is an effort to ensure that, you know, the things that we’re doing trickle down and reach the actual consumer who is the target.”
Mr Halkitis had previously said that he hoped that all issues between the government and retailers would have been resolved by October 21. He also made it clear that officials were “not delaying the roll out at all”.
Asked if this will be the last extension granted, he answered: “Well, I think subsequent to when I spoke to you last I must have that is when they actually wrote to us and we agreed. So we’ve sent out a statement - it’s November 1. We wanted to be able to say that we gave time for the adjustment. Ideally, the businesses requested, you know, there’ll be consultation beforehand but, you know, we think that this is an adequate adjustment period.”
The government is planning to limit the wholesale and retail markup on items like diapers and food including chicken, eggs, bread, bananas, apples, oranges, broccoli, onions, and potatoes.

He noted that beginning November 1, the government anticipates that the new margins will be in effect in the retail pharmacies as well as retail stores.

“Well, I wouldn’t style it as negotiations because you know, we have amended the orders, and what we have done is not gone to full enforcement of the new orders yet, because in our meeting with the retail grocers last week Monday, and as well, we had a meeting with pharmacy retailers and as well as pharmaceutical wholesalers this past Friday, where they expressed similar sentiments about notice and being given an opportunity to make the adjustment. Of course, they did not agree with the new margins,” he said yesterday.

“But we stress to them that this is a temporary measure in the first instance that we will review afterwards. And we committed to look at some other things that impact their business. So what we have agreed the retailers did ask for an extension to the 28th, which is this Friday, in order to get us some suggestions on how we can, you know, achieve what we’re trying to achieve, ie bringing down prices, and minimise the impact — (I am) waiting to receive that, as of now I haven’t received it as yet.”

He added: “So what we indicated was that, you know, Friday’s the 28th, what we will do is we will give until November 1. And beginning November 1, we will expect that the new margins will be in effect in the retail pharmacies as well as retail stores.”

The Ministry of Economic Affairs, in a statement issued on Friday, confirmed that food retailers and wholesalers, plus their pharmaceutical counterparts, have until October 31, 2022, to complete the transition to the new price-controlled margins and mark-ups - effectively granting them a week’s extension. Price control inspectors will not begin enforcement of these changes, whatever they ultimately may be, until November 1.

Asked about penalties for those who do not comply with the impending changes, Mr Halkitis said the government wants to ensure the regulations are being met.

The minister explained: “There are various penalties within the law but what we want to do is have an opportunity to have people comply, and failure to comply, then there are other monetary penalties. But the idea is that, you know, we’re not coming down with a heavy hand, so to speak or sledge hammer, but we just want to ensure that the regulations are being met.

“And we think that this time, you know, it will be approximately two weeks since the amendments were made, that we will be doing the enforcement and we think that’s adequate time to make the adjustment. And as we said, in the first instance, it’s a temporary measure, we understand everything that the businesses have told us about the potential impact on their bottom line and the cost and how it’s affecting everybody. But what we stressed as well, is that the government has made some efforts on its behalf.

“And this is an effort to ensure that, you know, the things that we’re doing trickle down and reach the actual consumer who is the target.”

Mr Halkitis had previously said that he hoped that all issues between the government and retailers would have been resolved by October 21. He also made it clear that officials were “not delaying the roll out at all”.

Asked if this will be the last extension granted, he answered: “Well, I think subsequent to when I spoke to you last I must have that is when they actually wrote to us and we agreed. So we’ve sent out a statement - it’s November 1. We wanted to be able to say that we gave time for the adjustment. Ideally, the businesses requested, you know, there’ll be consultation beforehand but, you know, we think that this is an adequate adjustment period.”

The government is planning to limit the wholesale and retail markup on items like diapers and food including chicken, eggs, bread, bananas, apples, oranges, broccoli, onions, and potatoes.

Click here to read more at The Tribune

 Sponsored Ads