Price-gouging

Price-gouging, that is blatant ripping off of consumers by unscrupulous business persons, has become a popular term since the introduction of the Value-Added-Tax (VAT). Given the teething problems associated with the changeover of any tax system, it is not surprising that some persons are trying to take advantage, successfully in many cases, of the new situation. So consumers are feeling the pain and the blame is laid at the feet of VAT. {{more}}

Concern is especially grave where food prices are concerned. Some goods are VAT-free but many, consumed by the public, are not and thus there is room for jacking up prices. In the face of this, the Government and VAT-unit have virtually put their hands up, advising consumers to “shop wisely” and warning us that the Government is powerless to stop overcharging on non-price control items. Not very reassuring one must say.

“Shop wisely” is good advice but it is easier said than done. It is a practice which has to be developed over the years and is based on systems of information, education and communication. One does not begin to “shop wisely” overnight and bad habits are the hardest ones to purge from one’s systems. The truth is that over the years we have become more and more “consumerised” until we sometimes cannot separate our needs from our wants. It is not made any easier by advertisements, especially on the television. This makes many of us easy prey for the vultures of the business world.

For more than three decades now attempts have been made to get Vincentian consumers to join up to a National Consumers Organization. Many of us simply ignore the messages. It is only when we feel the pinch that we react so the time must now be right for a major drive in this direction. Over to you, Consumers Association, make use of the heightened concern in this direction to spread your message, to inform, educate and organize. The Consumer Division of the Ministry of trade also has an important role to play in the situation. The VAT-related problems call for a vigorous response.

I am amused though by the apparent public “surprise” to the after effects of the May 1st introduction of VAT. Some of us have been, like voices in the wilderness, long prodding our fellow-citizens to take inquiring look at the developments in the international trade environment and how they impact on us all. It is not now that we have been talking of trade liberalization and the impact that it can have on small countries like ours. But many people see the problems only in terms of bananas, for them it was a problem for banana farmers. “Why don’t they grow something else?” was an oft-repeated question. Well, VAT is one response to that trade liberalization so we can ask, “Why don’t you buy something else?”

But it is not just imports that bear the mark of price gouging. Take our market and locally produced food for instance, check the prices. So you see why so many lower-income people have to settle for chicken back and rice. Nutrition is not the issue here, it is affordability. (Though, I will argue that many of us who complain about not being able to afford basic healthy foods, have no problem in expanding more than that in phone cards and cheap talk).

The trends in the international arena and our adherence to the policies of the big worldwide financial and trading institutions (World Bank, IMF, WTO etc.) mean that things like price control have become less and less important. There was a time when we had a vibrant Price Control division, Dennis “Prick” London is here again and can testify to this. It was gradually scaled down and price control is now only for minimal items.

One area to be freed from price control was fish. There are some who believe that it had to do with the Japanese presence since the price control lifting coincided with the building of the Fish Market complex by the Japanese. Since then it seems like our fish have all become flying fish for prices have gone up in the air. It is only when small robin, ballahoo and small jacks abound that many poorer folk can afford fish. Yet we talk of “After breast, fish is best,” where is our national policy to ensure affordability of this vital nutritional requirement?

As for meat, the meat market may be neglected but prices have gone in the opposite direction. What is the ingredient in locally-produced beef, pork or mutton to justify the steep hike in prices in recent years? Where will it all end?

These issues must be of national concern. They relate to POLICY issues and active pro-people programmes. Food is a RIGHT, an ESSENTIAL NEED; we cannot afford to let reckless trade policy take that right away from us. Our food security is too precious for that. We have to find ways and means to stop this spiralling of food prices. That means investment in agriculture to increase local production and productivity, it means providing the infrastructural mechanisms and incentives. That is surely not beyond us.

Finally, let me invite you all to join our farmers on Sunday to a rally at Mt. Bentick Bay Road, Georgetown.