Gov’t in price control talks with supermarkets
Deputy Premier Lorna Smith has revealed that the government is in talks with supermarkets to introduce voluntary price control measures as the territory prepares for a minimum wage increase.
The increase to $8.50, set to take effect on December 1, has raised concerns about the potential rise in the cost of living, and Smith addressed these worries during her recent statement in the House of Assembly.
Smith highlighted the government’s ongoing efforts to alleviate the economic impact that the wage increase might have, particularly in light of global inflationary pressures. “We are fully aware of the need to minimise unintended consequences, particularly given current inflationary pressures,” she noted.
The Deputy Premier emphasised that external factors, such as global supply chain disruptions and international fuel prices, influence the cost of many essential goods. To address this, Smith said that discussions are underway with supermarkets to secure voluntary agreements that would stabilise the prices of essential items.
“We are in advanced negotiations with our major supermarkets to secure voluntary commitments to control prices on essential goods,” she stated, adding that this partnership aims to protect the purchasing power of residents, particularly those set to benefit from the upcoming wage increase.
Beyond price control, Smith also mentioned that the government is looking to strengthen consumer protection laws as part of its broader strategy to shield residents from rising costs. “Modernising our consumer protection framework is a priority,” she said. “To that end, we are reviewing the Consumer Protection Act with the aim of amending it.”
Smith added that these amendments will enable swift implementation and better serve the needs of both consumers and businesses, fostering a fairer and more efficient marketplace.
“The decision [of a wage increase] was made with careful consideration, following extensive consultations,” Smith noted, explaining that the increase is a significant part of the government’s efforts to balance the needs of workers and businesses.
While the wage increase is expected to help lift many workers out of poverty and boost the economy by increasing disposable income, Smith acknowledged that the government must continue to monitor and mitigate any adverse effects. “By raising the minimum wage, we will help lift many hardworking individuals and families out of poverty, offering them greater financial security,” she said, adding that the goal is to stimulate economic growth while supporting businesses through this transition.
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“voluntary price control”…. Great…
You are having discussions now as the December 1st implementation comes into play? So, you’re telling the businesses to not raise rates but increase payroll costs (as well as additional tax benefits to Government for doing this too)?
What Government should have done (and should be doing) is lower or remove import tariffs on day to day living supplies and foods, as well as raising the tax threshold for lower waged employees so they see benefits through reduced payroll tax. Then you can implement some sort of enforcement to the supermarkets to make sure the savings are passed on. The employee wins, the business can manage, and Government gets an increase in tax revenue due to raised wages.
But forward thinking and common sense is not what the BVI Government does best!
Reactive, and nonsensical is the way the work!
In a nutshell Government has single handedly f’ed the employee, f’ed the employer, and increased the tax revenue, will further crippling the economy! Nice job Deputy Premier!