The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Businesses yesterday slammed the Price Control Commission for “intentionally trying to demonise” the private sector, and warned that it threatened to undermine Value-Added Tax (VAT) implementation.

Several top executives pushed back hard against suggestions by the Commission’s chairman, E. J. Bowe, that the entire business community had been exploiting Bahamian consumers for years.

Rupert Roberts, Super Value’s owner and president, told Tribune Business that the Commission’s “ranting and raving” was creating consumer hostility towards the private sector and leading to false expectations.

Warning that comments by Mr Bowe could “backfire” on the Government when it came to public acceptance of VAT, Mr Roberts said the Commission’s demand that documentation on ‘breadbasket items’ be present in all his stores would only increase costs for the consumer.

“It’s very inconvenient and very expensive to send the records from the head office to the store with the goods,” the Super Value chief told Tribune Business.

“That’s very unnecessary and shouldn’t be part of the expense. It increases prices for the consumer if we’re going to have to start doing that. It doesn’t make any sense.”

He was responding after Mr Bowe, on the Commission’s behalf, expressed disappointment that Super Value’s Robinson Road and East Street stores did not have documents detailing the initial and landed costs for ‘breadbasket’ items, and the 23 per cent mark-up permitted by Price Control.

As for Mr Bowe’s blanket comments, suggesting that the entire private sector had been gouging and ripping-off Bahamian consumers for many years, Mr Roberts warned that they might come back to haunt the Government.

“It discourages merchants to see a government department behaving in such an over-zealous manner. It’s very discouraging,” he told Tribune Business.

“The Commission seems to be ramped up, saying for years businesses have taken advantage of the public. The public are being ramped up, and I’m starting to wonder if it’s intentional, because if it’s not intentional they can ramp it down

“Government should help with the public education, not help stir them into a frenzy.”

Mr Roberts said the evidence directly contradicted Mr Bowe’s assertions, given that Price Control had consistently checked Super Value’s stores on a weekly basis and found no problems.

Suggesting that Mr Bowe had thrown the responsible minister, Shane Gibson, “under the bus” with his remarks, Mr Roberts added: “This ranting and raving is only exciting the consumer.

“We don’t need that at the moment. The Government and merchants should be working together to keep this going smoothly. Eventually, it’s going to backfire on VAT if this keeps up. This ranting and raving doesn’t make any sense.”

The fear alluded to by Mr Roberts is that the Commission’s message will ultimately end up pitting the private sector against Bahamian consumers, threatening acceptance of VAT by encouraging the notion that price increases have resulted from merchant ‘gouging’ - not the tax.

The Super Value chief told Tribune Business that the supermarket chain worked well with other government agencies, and “I don’t see why we can’t work with the Price Control Commission to keep the cost of living down”.

“We do the best job we can to keep it straight,” Mr Roberts said in relation to price controls. “One mistake is one too many.

“We’re ready for them to come any time. We don’t have anything to hide. Price Control in the past have been very responsible, and helped us keep things under control and in line.”

Rick Lowe, Nassau Motor Company’s operations manager/director, was another to hit back, asking why the Government was “letting this man [Mr Bowe] demonise?”

“What do they think they are?” Mr Lowe charged. “This isn’t Venezuela and Cuba, for heaven’s sake. It’s like they’re intentionally trying to demonise.”

Mr Roberts, though, suggested that it was VAT, not the private sector, that was being “demonised” in this situation.

“People know me,” Mr Roberts told Tribune Business. “I’ve served them going on 60 years, and everyone I’ve served knows I’ve not jooked them one penny, and I’m not going to start now. Nobody can demonise me.

“It’s going to backfire on VAT and backfire on the Government. At the end of the day, consumers will know it’s not the merchants that put VAT on; it’s the Government.”

Mr Lowe, though, called on the Government to “get rid of price control”, describing it as an outdated policy that no longer served consumer interests and, in some instances, harmed them.

“It’s an outdated policy,” he told Tribune Business. “The only two countries in the region where I’m aware that they have them is Cuba and Venezuela. Not the best of company from an economic standpoint.”

Mr Lowe said the private sector and the Government enjoyed equal importance, pointing out that “one is no good without the other”.

Pointing out that the Government would have no taxes without businesses and the jobs they create, Mr Lowe added: “What’s disconcerting is that when the Government runs out of money, it raises taxes.

“Businesses are losing money, have to raise their prices and they are demonised. Where’s the balance there?”