Last Updated: Tuesday, March 16, 2010 : 6:00 AM
Member Name:
Password:



Home / Commentary _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Commentary
Tools: Print  |  E-mail  |   Bookmark and Share
Living costs keep climbing

 

Published on: 2/3/2010.


WATER RATES HAVE BEEN INCREASED; electricity rates are about to be increased; and the major telephone service provider has the legal right to increase charges - within limits - and intends so to do.

During these changes little or nothing was heard from the Barbados Chamber of Commerce and Industry (BCCI), the Barbados Manufacturers' Association or corporate Barbados.

It was therefore interesting to hear the vice-president of BCCI, Mr Andy Armstrong, come out, even at the eleventh hour, to affirm that merchants operating in the distributive trades were not guilty of price gouging, but rather that there was urgent need for a reduction in Port charges and duties.

It was also heartening to hear that the Government had recently signed an agreement with the Inter-American Bank (IDB) for a thorough study of Port costs, logistical procedures and other operational issues.

The objective? To achieve serious improvement in many of the existing processes, most of which have remained unchanged for several decades.

The BCCI vice-president highlighted the annoying and inefficient practice when doing business with the Port of having to interact with several Government departments, none of which is in close proximity.

It is indeed strange that there was no comment on efficiency, or lack of, within the distributive trades or on the telling fact that in many cases prices become higher to the consumer due to sales by the importer to an associated company which in turn sells to the retailer - each transaction attracting margins
of profit.

Still further, and surprisingly, no comment has been made about stevedoring charges. One can no doubt recall this cost took its rise when it was essential to have goods unloaded manually. Today, container-loads of goods are removed mechanically from ships. Is stevedoring service still needed or is it superfluous?

There is no doubt that the system of charges within the Port, especially the compounded formula used by customs to arrive at the amount of duties payable, particularly in respect of motor vehicles, is horrendous. It is also true that Government needs sufficient revenue to enable it to maintain the level of services currently provided.

However, there can also be no doubt that with improved efficiency levels across the whole operations within the Port, costs could be contained appreciably.

The labour unions have had their way with the Port for a very long time. Circumstances and the current recession clearly indicate there is need to reduce Port costs and handling charges and the unions must be made to understand this. In a similar vein, the Port Authority needs to trim its expenditure and pass this saving on to users of the facility who, in turn, must share such bounty with John Public.

Yes, it may not be a case of price gouging, but is the public to conclude that no comment is forthcoming from big business in respect of increased costs (Barbados Light & Power Company Limited's new rates) merely because they take comfort in the fact that all increases will be passed on to consumers?

Subject:
Body:
Poster:
captcha 8346a0bf6c94485fbbddf51e7d8c8203
Enter text seen above:
2 comment found!

Pricing : 2/12/2010
The merchants are in bed with the government so prices are not going to be reduced anytime soon. The only ones who will suffer are the small business man, the people they employ and the poor people. (i.e lower class citizens). The fact remains that companies like Light and Power and Lime which in recent times have recorded profits, DO NOT NEED to increase prices right now. They don't have to build that power plant right now, that can wait until the recession eases up. GREED is the motivating factor behind a lot of the increases.
Also the Port Employees are among the highest paid in this country, how come the salary rate of a regular security guard is way less than one from the port? Salary cuts could start there.
Also the customs officers have they own rule of pricing which follows, if you know them the price is fair, if you don't you must pay extra to make up for the people they know. It needs to be investigated.

Observer

Costs : 2/3/2010
It is going to climb even higher for maybe another year or so. People need to tighten their belts.



More Commentary News


TODAY'S CARTOONS
3/15/2010



Most Emailed Stories

Do you think UWI should reduce its intake of students?

Yes
No
Uncertain

 









© 1997-2007. Nation Publishing Company Limited. | Privacy Statement | Terms of Use
News | Comments | Lifestyle | Media | E-Paper& Archives | Subscriptions | Advertising | Classifieds | Blogs