7 News Belize

Cabinet's Price Control Police
posted (July 1, 2008)

The high cost of living it’s a day to day problem for most folks and for the government, especially one elected on a pledge to lower the cost of living – it’s a political crisis. And that’s why Cabinet has appointed a standing committee on basic commodities comprising 5 Ministers to find solutions that will give your personal finances some real relief. Jacqueline Godwin found at more at a press conference today.

Hon. John Saldivar, Minister of Public Service
“The world does not expect to see a reversal of these trends in the near future. We can therefore conclude that the days of cheap food that have been enjoyed throughout the world, are for all intents and purposes over.”

There are no available statistics to support the fact that we are paying more money for basic food items. The rising cost has taken a toll on Belizean Consumers especially poor families. While the Government of Belize does not have any control over increasing world prices that have impacted the cost of living, GOB has taken on the challenge to combat the rising cost of basic food commodities.

Hon. John Saldivar,
“Because most of what we consume are imported, we cannot get away from also importing the inflation or higher prices that attach to these imported items. We cannot shy away from the fact that it is the government of Belize’s duty and obligations to use whatever is reasonably within our means to protect our people from this global scourge.”

Minister of Public Service John Saldivar is the chairman of the newly appointed Standing Committee on Basic Commodities that is charged with the responsibility of finding ways to deal with the crisis at home. Jose Trejo has been appointed as the price controller of supplies who is expected to enforce the regulations of price controls.

Hon. John Saldivar,
“Some of these grocers are going to start getting arrested and charged. I know also that government is already seriously contemplating increasing the penalty regime for these offences. $2,000 is way too little and the figure being tossed about is anywhere upwards of $10,000 for an offence.”

The Belize Bureau of Standards and the Supplies Control Unit will now merge activities and be strengthened to better serve the public. A consumer hotline has also been activated. The number is 0 – 800 – 283 – 5587.

Hon. John Saldivar,
“The standing committee’s main function is to monitor the prices of certain basic commodities and intervene when necessary to prevent or at least minimize price increases in these very basic commodities. In conducting its interventions, the standing committee will meet with supplies, be they producers, importers, distributors. We will also study the market situation, both local and external, and through discussions and negotiations, arrive at consensus on how to avoid increases or how to keep these increases to a minimum.

In terms of direct subsidies, I can tell you that the direction has already started because the general feeling at the Cabinet level is that rather than giving the relief to those who perhaps import or those who perhaps produce and hope that those persons will pass it on to the consumer, we are definitely looking more at how we can provide those direct subsidies to poor people.”

The standing committee will be advised by a twelve member National Commodities Commission that is represented by the private and public sector. Minister Saldivar listed the items earmarked to be closely monitored to control any price increases. He also explained why the items were selected.

Hon. John Saldivar,
“We have listed rice, beans, flour, bread, chicken, butane, milk, cooking oil, and corn because these items either have some kind of permit or regulation control that is connected with them or are produced locally by local producers with whom we may need to conduct negotiations.”

The committee has already held discussions with rice producers, flour millers and bakers and suppliers of butane. Saldivar says while there is no price control on poultry the producers are now required to discuss any proposed increase. Saldivar admits while the task ahead will be challenging he remains optimistic.

Hon. John Saldivar,
“The policing aspect of trying to keep prices down will see a great improvement in terms of our job as the standing committee to negotiate with producers, suppliers, and so on. We’re just going to continue to hope that all of us have this goodwill in wanting to make sure that the consumers get a good deal. And so we’re going to have to continue meeting with these people to make sure that the consumers get a good price and we understand the producers who obviously are experiencing the same increase in their costs because they have to import most of what they put into their production. So it is a balancing act we have to do and we hope that the public and producers understand that we are trying our best to keep prices down.”

Jacqueline Godwin for 7NEWS.

And echoing what the Prime Minister had to say yesterday Saldivar promised that in the new budget there will be tax reductions on a wide range of basic food items and commodities. Import duties will also be reviewed. The Cabinet standing committee is advised by a 12 member National Commodities Commission with 6 members from the private sector.

Home | Archives | Downloads/Podcasts | Advertise | Contact Us

7 News Belize