Oh no, Mr. Bynoe!

COMMERCE MINISTER Donville Inniss has rubbished claims that Barbadians will be paying more at the cash register due to an increase in the US Domestic Fuel Surcharge (USDFS).

Speaking to the media yesterday, Inniss made reference to an article appearing in another section of the press on Friday, where Andrew Bynoe of Carlton & A1 and Emerald City Supermarkets warned that he would have no choice but to pass on the 23 per cent surcharge to customers, which he said was compounded by the Value Added Tax, the National Social Responsibility Levy and the two percent foreign exchange levy.

However Inniss, who stated that not only was he concerned about the announcement as Commerce Minister, but as a consumer and a parliamentary representative, said it took him all of 15 minutes to realise that the calculations were off the mark.

“The USDFS at February 1 stood at 21.5 per cent. With effect from March 1 it moves to 23 per cent. That is a rate set by the Department of Energy of the USA for inland transportation going to a port in the USA. If you are moving a 40 ft container of goods let’s say from Gainesville in Florida to the Miami port, there is a surcharge that the USDE (US Department of Energy) charges for that. The supplier of the goods in the US may or may not pass on to the consumers.

“The fundamental issue here is that it is grossly misleading to give the impression to consumers in Barbados that there will be some increase to goods in the supermarket because of an increase in cost of fuel surcharge in the US. First the charge has only increased by 1.5 per cent, not 23 per cent…,” he reiterated.

Inniss said his investigations show that it would take approximately US$3 500 to run a 40 ft container from Miami to Barbados. “That increase in surcharge in the US, that additional cost, for an importer bringing that container in it translates to $69.

“So a big front page article, designed to create panic in this society and to give the impression subliminally that, once again, under this government, there is an increase in cost in the supermarket is grossly misleading. And I am bold enough to say I think it was deliberately done,” he charged.

“We will continue as a Ministry and a Government to monitor these issues, but I want to give Barbadians the assurance that the public comments attributed to Andrew Bynoe with respect to increase in prices in the supermarkets are grossly erroneous. If Mr. Bynoe wishes to increase goods in his supermarkets, he is free to do that but he should blame no one but himself,” he said.

The outspoken Member of Parliament for St. James South said the consumers of Barbados must stand up for themselves and ask some serious questions. He also said while persons have been advocating the need to implement price controls, he does not agree with such a move.

“I think that is very archaic and breeds a level of laziness in corporate Barbados. What is important is that we allow for competition. And when I reflect on what certain supermarket owners have been doing and saying, I am grateful that there is competition. And consumers therefore must be in a position where they understand that a significant part of cost of what they are paying in the supermarkets and other places, don’t necessarily relate to government policies and taxation.

“It relates to the profit motive of those engaged in enterprise. You are in business to make a profit, but I also like the fact that consumers have options, they have other places to shop and I certainly will exercise that fully.”

Inniss also criticized consumer groups and other bodies for “jumping on the bandwagon” before doing their own research. (JH)