New panel to probe cost of food

FRIDAY, JULY 15: A team of ‘price police’ has been established to investigate whether consumers are being ripped off.

Premier Paula Cox today announced a groundbreaking new scheme to investigate “worrying leaps” in the cost of basic necessities, particularly food.

The Premier has established a Price Commission to report on the state of the market.

Making the announcement in the House of Assembly this morning, she said: “We must ensure that consumers are protected from unwarranted price increases while suppliers continue to remain profitable.”

Both the Bermuda Industrial Union and the Bermuda Public Services Union highlighted the rising cost of food as a sticking point in negotiations over wage-freezes, overtime cuts and other Government cutbacks.

Ms Cox said today the unions would be among several interested parties consulted by the commission as it compiles its report.

She said the three-person team of Lucia Peniston, Anthony Richardson and Daniel Reece would be tasked with:

* Using Government statistics to identify the ‘essential goods and services’ that the inquiry will cover;

* Inviting interest groups, consumers and individual Bermudians, who wish to provide data, statistics and other information, to make submissions;

* Getting input from wholesalers; supermarkets; convenience stores, discount stores and other businesses that provide essential oods and services;

* Consulting the unions;

* Consulting with business development, employer groups and the Chamber of Commerce;

* Getting information from shipping companies and other importers regarding the current cost air and freight shipping;

Their ultimate aim will be to produce a report for the Minister recommending how Government can assist in ensuring that consumers can get the most reasonable price for essential goods and services.

Ms Cox said: “In the budget brief for the Ministry of Finance in March 2011, I made the following statement: ‘Recently, the prices of food staples in global commodity markets have risen in worrying leaps. The Ministry of Finance has considered the implications for Bermuda and the policy options available to Government.

‘Given that Bermuda imports substantial proportions of the food consumed on Island, we are in the position of 'price takers'. In these circumstances, a regime of price controls could have unintended consequences including the disruption of supply lines.

‘Accordingly, Government will use the powers of enquiry available under the Price Commission Act 1974 to obtain information from food importers about their import costs and margins to ensure that consumers are protected from unwarranted price increases.’

Today Ms Cox said she was putting her words into action with the formation of the new commission.