Weekly Column

“There can be no real individual freedom in the presence of economic insecurity.” - Chester Bowles. US diplomat & economist (1901 - 1986)

After eighty-five minutes of labour, the Prime Minister delivered himself of a draconian stillborn policy on Monday night in front of the entire nation and a limited press corps that must have been insulted that his most significant statement of the evening came at the end of platitudes, waffling and other insignificant generalities.

Barbadians were certainly shocked that on the evening when certain ninety-day election promises were due that the Prime Minister was unable to deliver even one. Instead, he pushed his hand deep into their pockets to extract millions of dollars for gas, diesel and LPG at a time when they are already struggling with rising food prices, a 30 percent increase in flour and almost 8 percent more for cement.

The Government’s apologists may argue that it has no control over global energy prices, but the fact remains that it had options to ease the impact of these prices on Barbadians. The dynamic duo in the Ministry of Finance could have introduced incremental price increases in order to give Barbadians a chance to meet their commitments and redefine their financial priorities. They could have raised a bond to cover the money already owed to the Barbados National Oil Terminal. They could and should have retained the price differential between gas and diesel in order to protect the productive sectors of the economy.

They chose none of these options. What they did was inflict a level of pain on Barbadian consumers that will surpass that of the oil crisis of 1973 and is likely to jeopardise our economic security.

The most heinous aspect of their policy is the increase in VAT that they will reap because of higher prices at the pump. And this is the one aspect of the pricing over which they have total control. They will receive seven cents more per litre on gasoline, fifteen cents more on diesel, $5.69 more on the hundred pound cylinder of gas, $1.42 more on the twenty pound and $1.14 on the twenty pound. The government is profiting while Bajans are struggling to buy food and keep their cars on the road.

We say that the least they could do in the circumstances is to reduce the VAT to keep the tax take constant and pass on the benefits to consumers. And we ask you whether this is not another form of price gouging?

We say that the least they could do in the circumstances is to reduce the VAT to keep the tax take constant and pass on the benefits to consumers. And we ask you whether this is not another form of price gouging?

We urge the Prime Minister to review his energy pricing policy. It is not too late.

Next week we will give a report card on the first hundred days.