BVI not immune from cost of living increases

Premier Dr Natalio Wheatley has attributed the escalating cost of living in the Virgin Islands to global economic trends and the territory’s reliance on imported goods.

He emphasised that while the territory is not immune to worldwide inflation, the government is implementing measures to mitigate its impact on residents.

“We must recognise that most of what we consume here in the Virgin Islands is imported,” Premier Wheatley stated during a press conference yesterday. “Therefore, the prices that our vendors and stores have to pay [are influenced by increases] in the United States of America and all of the source markets where we get our food.”

Alternative energy to cut prices

He said the government has been focusing on several key areas to address these challenges, including energy and alternative sources. “One thing that we can do to help ourselves in lowering prices is by using alternative energy,” Premier Wheatley noted.

He highlighted the Solar Technology Energy Programme (STEP), led by the Ministry of Communications and Works and the BVI Electricity Corporation, as a pivotal initiative in this effort. Reducing dependence on imported food is another strategy the territory’s leader proposed. He coupled this with the indication that the government would review tax and duty structures to ease financial pressures further.

“Many essential items are already zero-rated or have very low duties, but it’s something we have to continue to review,” Premier Wheatley explained.

According to the Premier, strengthening consumer protection is a priority for his government. Dr Wheatley said he plans to clarify the role of the Trade Commission, which was established to oversee consumer rights.

‘Basket of goods’ initiative

“There was a Consumer Protection Act that was passed. It couldn’t be brought into force because the Trade Commission would have to have been brought into force first,” he said. He further noted that the government intends to implement a ‘basket of goods’ initiative, ensuring essential items remain affordable.

In the meantime, Dr Wheatley indicated that the government is addressing income disparities by implementing significant salary increases for public officers. “This year, we gave the biggest increase in salaries in the history of the Virgin Islands,” Premier Wheatley announced.

The focus was on bringing public servants above the identified living wage. Additionally, a minimum wage increase is underway to ensure fair compensation across sectors. Recognising that more needs to be done, Premier Wheatley said his government is developing a comprehensive strategy involving multiple ministries and departments.

The plan includes enhancing employment opportunities, particularly for able-bodied individuals, and providing targeted support for vulnerable populations, such as schoolchildren facing hardships. “

We know that it’s still not enough. There’s still more that needs to be done.”