THERE IS NOW broad agreement across the political divide that supermarkets are engaging in some level of price gouging.
However, Chamber of Commerce President Andy Armstrong continues to defend the recent increases, even as former Opposition Leader Mia Mottley this weekend revealed new statistical evidence which shows that the average basket of goods has definitely increased in the last two years.
Mottley calculates that the same basket of 13 basic food items, which cost $57.71 in 2008, must now be purchased for $67.84.
She said prices are also dependent on where you shop, pointing out that the same list of 39 items ranged from $180.23 to $259.55 between 11 supermarkets surveyed.
The SUNDAY?SUN?has also been tracking the price of five other items – namely stew beef, Bajan Pride Flour, seedless grapes, mauby and macaroni, which were presented by Minister of Commerce Senator Haynesley Benn as proof that certain merchants were “jacking up prices indiscriminately”.
However, we only found one item which reflected his statement.
Yesterday, Finance Minister Chris Sinckler rejoined the debate and insisted that though the Government would not engage in any “naming or shaming”, wholesalers and retailers would be asked to fall in line and to find ways of controlling prices.
He plans to meet with wholesalers and retailers by monthend to discuss the matter.
At the same time, Benn said he is awaiting Cabinet and parliamentary approval to put more monitors in place – not only to ensure there is no price gouging, but that consumers get value for their money.
“Believe me, this is a serious matter and I am not a minister who will just sit down and talk. I will do something about it, but I need officers out in the field to monitor and measure prices. No more talk, I will take action,” said Benn.
It however remains unclear what precise action the Government could take. Legislation was amended in November 2007 giving power to the minister to form a commission to look into the issue of price controls.
“Such a commission will be set up, but this is more than just about a commission or meetings. I want to be in “a position to have examples of what is taking place and do something about it,” said Benn.
“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.
Meanwhile, Sinckler confirmed that the 2011 Estimates would include a budget for more price control officers.
He also noted that overseas competition, including the United States chain Cost U Less, should be making its entrance in Barbados in the next few months.
“We also plan to restart the publishing of the basket of goods with the recommended prices,” Sinckler told the SUNDAY SUN.
Customs brokers in a statement earlier made it clear that the 2.5 per cent increase in VAT when coupled with the removal of the environmental levy ought not to see an increase in prices.
This despite rising oil and commodity prices internationally.
“It would have nothing to do with the VAT. The point is that everything must be monitored,” said an association member.
That point was emphasised by Benn.
“I am going to ensure that I am in a position to determine if the mark-ups by supermarkets are reasonable. The Miscellaneous Controls Act allows for a commission to be set up to look at the monitoring of prices. That will be done and I will be on the case,” Benn stressed.
