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Objective observers have recognised for sometime, that the more regulations that are put in place by an administration, the greater the scope for bureaucrats to corrupt the system.

In spite of these realities, Taitt claimed in a recent interview with one of the local dailies that the system worked during his tenure of office.

Presenting his argument in favour of the re-introduction of price controls, the former Trade Minister said: "They (price controls) tended to keep the price of food-stuff and other necessities at resonable levels, partly by putting pressure on importers to find the best sources for products in terms of quality, price, volume and reliability."

While acknowledging that in the local economy there are few importers, he cited Adam Smith's argument that for competitive prices to be a feature of the market place, there must be intense competition with many businesses competing.

The question must be asked: What measures were put in place by DLP administrations of the period to increase the number of players in the distributive sector?

Smith, who was the author of the publication, "The Wealth of Nations", further argued that with many firms in competition, a few could not meet and make a contrivance to raise prices.

Inadvertently debunking charges made by David Thompson and senator Freundel Stuart that Prime Minister Arthur's hands were tied because of an unholy alliance between his party and the distributive sector, Taitt said: " The importers and wholesalers in Barbados are a few and do not constitute the economist (Smith's) version of perfect competition... We have to prevent those in the same trade from entering a conspiracy against the public." Isn't this an acknowledgement that the local distributive sector is business cartel?

He further charged that business people go to Miami and set up shop and import from themselves, put the goods in their own trucks, move them from one of their warehouses to another, and at every step impose exorbitant mark-ups.

BLP spokesmen can also levelled the unfounded charge that DLP operatives were in bed with the merchants of the day or were afraid of breaking the stranglehold they have on the distributive sector. These trading arrangements were in place long before the island enjoyed genuine representative government.

In all fairness to Arthur, he has suggested that local importers buy larger volumes of goods in an attempt to reduce the unit cost of food items. He envisaged Barbados becoming a regional shopping centre with the larger volume of imports.

It is noteworthy that the DLP plans to re-introduce a discredited price control policy which led to the closure of several village shops and widespread shortages of basic food items, while the BLP has selected a basket of goods for the exercise after consultation with the major players in the sector. No businessman worth his salt would import a wide range of goods on which there is a price cap. People go into business to make a profit. It is as simple as that!

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